Understanding the low cost business model in healthcare service provision: A comparative case study in Italy. (November 2019)

• Record Type: Journal Article
• Authors: Cicellin, Mariavittoria; Adriana Scuotto, ; Canonico, Paolo; Consiglio, Stefano; Mercurio, Lorenzo
• Is Part Of: Social science & medicine. Volume 240(2019)
• Publication Date: 2019-11
• Subjects: Healthcare business model -- Low cost -- Social business model -- Comparative case study; Bottom of the social pyramid BoP -- Chief Executive Officer CEO -- Centro Medico Santagostino CMS; Social medicine -- Periodicals; Medical anthropology -- Periodicals; Public health -- Periodicals; Psychology -- Periodicals; Medicine -- Periodicals; Medicine -- Periodicals; Médecine sociale -- Périodiques; Anthropologie médicale -- Périodiques; Santé publique -- Périodiques; Psychologie -- Périodiques; Médecine -- Périodiques; Electronic journals; 362.105
• DOI: 10.1016/j.socscimed.2019.112572
• Languages: English
• ISSNs: 0277-9536

Abstract

Abstract: The cost of medical treatments may undermine timely and effective access to healthcare. We believe it is useful to examine innovative business models recently introduced in European countries, borrowing from less developed economies. This paper aims to analyze new business models of healthcare service provision that have recently been introduced in Italy, and its social component. In particular, we analyze the low cost business model in Italian healthcare. We carried out a comparative case study of three Italian low-cost organizations. The cases were selected using four social criteria: start-up capital; social value proposition; social value equation; and social profit equation. From the comparative case study, six main themes emerged: 1. Social relationships; 2. recruiting and engagement of medical and nursing personnel; 3. economies of scale; 4. cross subsidization; 5. management of financial surpluses; 6. patient involvement and participation. The cases reveal new ways of healthcare service provision and unravel innovative organizational dimensions falling into the low cost business model. The organizations both maximize profit and respond to the social need for healthcare at relatively low costs. The low cost business model is therefore able to respond to the demand for affordable healthcare, while providing social innovation. Highlights: The cases reveal different ways of healthcare service provision. The cases unravel innovative organizational dimensions falling into the low cost model. Low cost organizations respond to the social need for healthcare. The low cost business model respond to the demand for affordable healthcare. The low cost business model provides social innovation.