HYGEIA NIGERIA LIMITED (B) — RE-POSITIONING AS AN HMO

Author :

Fola Elebute

Pages :

13

Product Type :

Case

Reference # :

BP-C-97-1-02

Teaching Note :

Institute:

Lagos Business School

Setting:

Nigeria. Healthcare.

Year:

1997

Keywords:

HMO. Healthcare.

Summary/Abstract:

After five years of providing a managed care product, Hygeia’s management felt that the time had come to consolidate the gains from that business by giving it as much focus as the more traditional specialist fee-for-service business that had historically been the main thrust of Lagoon Hospital’s operations. Three particular issues were uppermost in Prof Elebute’s mind as he considered this next phase of his business. The first was what impact would the imminent arrival of the National Health Insurance Scheme (NHIS) have on Hygeia’s current managed care business? Secondly, how would Hygeia successfully make the transition into an HMO, with all the associated capacity (infrastructure and people) requirements, particularly as it meant moving from a high-end niche market to a mass market positioning? Finally, how would Hygeia obtain the financing necessary to put in place these capacity requirements?