Situation
A significant gap exists in Kenyan mass-market healthcare services, with very few providers offering affordable, high-quality, accessible healthcare. This is especially true for outpatient services that can appropriately diagnose, treat or refer. Over the past several years, the market has proven its willingness to pay for appropriately priced, high-quality solutions. To bridge this gap, a highly experienced doctor and hospital administrator in Kenya decided to develop a clinic network but needed a business model and operational plan that would allow him to execute a low margin, high volume business with substantial upfront capital investment.
Our Process
OCA was engaged to develop the client's strategy and raise capital by:
- Conducting detailed research across Kenya to prove demand among low-income consumers as well as their willingness to pay
- Developing a business model including clinic service offerings, pricing plans, value proposition, and path to scale
- Creating an operational model including clinic layout, staffing plan, compensation, and detailed plan for the first 3 clinics by location
- Creating a financial model to quantify break-even, investment required, test scenarios, and prepare for a capital raise
- Approaching investors & managing capital raise - contacting dozens of investors and negotiating terms for 2 separate capital rounds
- Managing challenges during launch, helping create systems & processes, developing partnerships with suppliers, and shifting strategy real-time based on results from first clinic
As a result, over more than 18 months, we designed & helped implement a unique business model that invested in a new level of quality for low-income consumers, including services not offered by competitors (e.g. x-ray, ultrasound, postnatal, antenatal). We further supported a full capital raise, securing more than $800k in early-stage investments from international investors. Using this capital, the business built 3 clinics, serving more than 70,000 low-income patients, with plans to scale across East Africa.
