Mobile healthcare clinics
Mobile healthcare clinics
Business Model Description
Establish mobilie healthcare clinics, either as a separate business entity or as an additional service model of an established hospital or a stationary clinic. The separate business entity can either have its own medical team, or can collaborate with other medical institutions (hospitals, clinics, individual doctors) to form medical teams that meet the specific health needs in a given location.
Expected Impact
Promote mobile healthcare services to improve access to healthcare in remote areas, enable early detection of diseases, especially NCDs, and reduce healthcare costs and the rate of pre-mature deaths.
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Armenia: Syunik
- Armenia: Gegharkunik
- Armenia: Tavush
- Armenia: Armavir
Sector Classification
Health Care
There are significant regional disparities in access to healthcare in Armenia (3). The country suffers from a high rate of deaths from NCDs, particularly CVDs and cancer. Premature mortality was 32% in the same year (6, 7).
The Government Programme 2019-2023 prioritizes the enhancement of healthcare services. The Ministry of Health adopted and applies a broad set of national programmes to protect maternal and child health and prevent and fight diseases, such as measles, mumps and rubella, tuberculosis and HIV/AIDS. Social programmes are in place to ensure access to healthcare services for all (1,4).
The development of the health insurance system in Armenia opened up growth avenues for retail healthcare by significantly increasing the demand for paid healthcare services (4, 21, 22).
Key bottlenecks in the Armenian health care sector include limited public resources, lack of knowledge about healthy lifestyle, low income of population and insufficient coverage of health insurance (4, 21, 22).
Health Care Delivery
Pipeline Opportunity
Mobile healthcare clinics
Establish mobilie healthcare clinics, either as a separate business entity or as an additional service model of an established hospital or a stationary clinic. The separate business entity can either have its own medical team, or can collaborate with other medical institutions (hospitals, clinics, individual doctors) to form medical teams that meet the specific health needs in a given location.
Business Case
Market Size and Environment
Based on estimates by experts operating in the healthcare sector in Armenia, a medium sized mobile healthcare clinic can achieve an IRR over 20% (22, 32).
The customer base for mobile healthcare clinics and their services are the entire population of Armenia outside of Yerevan, which are approximately 2 million people (31).
Indicative Return
20% - 25%
Based on estimates by experts operating in the healthcare sector in Armenia, a medium sized mobile healthcare clinic can achieve an IRR over 20% (22, 32).
Investment Timeframe
Short Term (0–5 years)
Mobile healthcare clinics are expected to be able to generate revenue in less than five years. Revenue generation may be supported by Government programmes, which partly cover healthcare costs of vulnerable groups of Armenians (32).
Ticket Size
< USD 500,000
Market Risks & Scale Obstacles
Business - Supply Chain Constraints
Business - Supply Chain Constraints
Market - High Level of Competition
Impact Case
Sustainable Development Need
With 88% of healthcare services concentrated in Yerevan, Armenia has significant disparities in access to healthcare (3).
Armenia suffers from a high rate of deaths exist from NCDs, particularly CVDs and cancer. In 2016, NCDs accounted for 93% of deaths, CVDs for 44%, and cancer for 28% in 2019. Premature mortality was 32% in the same year (6, 7).
Causes of the high level of CVDs and cancer include the low prevention, lack of knowledge among population, and behavior of late attendance by doctors. Less than half of the people who have health problems visit a doctor. This is related to the absence of adequate infrastructure, qualified staff in remote areas and low affordability of health care services (21, 6, 7).
Gender & Marginalisation
Regions and remote areas have the lowest access rates to healthcare services, and much of the population is unable to seek medical support in urban centers.
Expected Development Outcome
Improved access to healthcare services to support early detection of diseases, which allow for treatment and prevent premature mortality.
Reduced healthcare costs and economic burden of diseases to the society. For instance, the economic costs of only CVDs to the EU economy are €210 billion a year, which is 1.3% of the EU GDP. Assuming a 1% ratio in Armenia, CVD cost to Armenian economy would be about $ 214 million annually (8, 9).
Gender & Marginalisation
Increased accessibility of health care services in remote areas, especially for the poor and vulnerable social groups, and increased quality of health care services in these regions that are traditionally marginalised.
Primary SDGs addressed
3.4.1 Mortality rate attributed to cardiovascular disease, cancer, diabetes or chronic respiratory disease
3.1.1 Maternal mortality ratio
3.8.1 Coverage of essential health services
3.2.1 Under‑5 mortality rate
3.1.2 Proportion of births attended by skilled health personnel
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Corporates
Public sector
Indirectly impacted stakeholders
People
Corporates
Public sector
Outcome Risks
The need for highly qualified medical specialists, depending on the healthcare requirements, may render healthcare services unaffordable for those most in need.
Impact Risks
Low purchasing power may hinder them from accessing healthcare services, even at affordable prices. The available Government support to certain segments of the population may mitigate this risk.
Some communities may have low healthcare awareness and avoid seeking medical support, even if affordable and accessible, due to social habits.
Impact Classification
What
Mobile healthcare clinics enable early detection of diseases and help to address high rates of NCDs and pre-mature deaths while managing healthcare costs.
Who
Population living outside of Yerevan and requiring medical attention at affordable costs and in accessible localities.
Risk
Mobile healthcare clinics are a proven model that supports addresses health challenges, but traditional social habits may obstruct Armenians from accessing services.
Impact Thesis
Promote mobile healthcare services to improve access to healthcare in remote areas, enable early detection of diseases, especially NCDs, and reduce healthcare costs and the rate of pre-mature deaths.
Enabling Environment
Policy Environment
The Government Program 2019-2023 outlines its prioritisation of healthcare services, while it does not specifically discuss mobile healthcare clinics (1).
In its National and Priority Programmes, the Ministry of Health adopted a broad set of measures to protect maternal and child health, and prevent and fight common diseases (1, 27).
Armenia's Government has social programs are in place to support access to healthcare services; subsidies are applied to support vulnerable groups, such as people with disabilities, children without parental care and expectant mothers (27, 29).
Financial Environment
Fiscal incentives: Tax benefits are available to promote healthcare services, as defined under the Tax Legislation; provision of healthcare services and the import of medical equipment are exempt from VAT (28).
Regulatory Environment
Provision of healthcare services in Armenia is subject to licensing under the Law on Licensing, which define requirements regarding medical and other standards, such as hygienic conditions (26).
Marketplace Participants
Private Sector
Dedicated mobile healthcare clinics include the Center of Prevention of HIV/AIDS conducts mobile testing, the Austrian Children's Hospital provides mobile scanning, and the Armenian Eyecare Project Charity Fund provides eyecare services through a mobile model.
Government
Ministry of Health, Ministry of Labor and Social Affairs.
Multilaterals
Several international financial institutions and multilateral banks support the promotion of Armenia's healthcare sector, such as the World Bank, European Bank for Reconstruction and Development (EBRD) and the Asian Development Bank (ABD).
Target Locations
Armenia: Syunik
Armenia: Gegharkunik
Armenia: Tavush
Armenia: Armavir
References
- (1) Government action program 2019-2013, https://www.gov.am/am/Five-Year-Action-Program.
- (2) Tax Code of the Republic of Armenia, https://www.arlis.am/DocumentView.aspx?DocID=151044.
- (3) Armenian National Statistical Service, www.armstat.am.
- (4) Ministry of Health of Armenia, 2018, Healthcare System Performance Evaluation, https://www.moh.am/uploads/ahgg.pdf.
- (5) Ministry of Economy of Armenia, www.mineconomy.am.
- (6) World Health Organization (WHO), https://www.who.int/nmh/countries/arm_en.pdf?ua=1.
- (7) European Detailed Mortality Database, WHO, Regional Office for Europe, 2016.
- (8) European Heart Network, http://www.ehnheart.org/cvd-statistics/cvd-statistics-2017.html.
- (9) Economic Burden of CVDs in Serbia. Lakić D, Tasić L, Kos M., 2009.
- (21) Voluntary National Report (VNR) of Armenia, for the UN High-level Political Forum on Sustainable Development, 2018, https://sustainabledevelopment.un.org/content/documents/26318Armenia_VNRFINAL.pdf.
- (22) UNDP interviews with stakeholders, 2019.
- (23) European Heart Network, http://www.ehnheart.org/cvd-statistics/cvd-statistics-2017.html.
- (24) Economic Burden of CVDs in Serbia, Lakić D, Tasić L, Kos M., 2009.
- (25) Core Health Indicators in WHO European Region, World Health Organization, 2019, http://www.euro.who.int/__data/assets/pdf_file/0004/413239/CHI_2019_EN_WEB.pdf?ua=1.
- (26) Law on Licensing, https://www.arlis.am/DocumentView.aspx?DocID=150834.
- (27) Ministry of Health of Armenia, National Programs and Priority Programs, https://www.moh.am/#1/99.and https://www.moh.am/uploads/vayoc%20dzor.pdf.
- (28) Tax Code, Art 64, https://www.arlis.am/DocumentView.aspx?DocID=95226.
- (29) Ministry of Labor and Social Affairs, https://www.mlsa.am/?page_id=2835.
- (30) Armenia in Numbers, Statistical Committee of Armenia, 2019, https://www.armstat.am/am/?nid=82&id=2325.
- (31) Social Snapshot and Poverty in Armenia, Statistical Committee of Armenia, 2019, https://www.armstat.am/am/?nid=82&id=2295.
- (32) Calculating the return on investment of mobile healthcare, 2009, Nancy E Oriol et al., https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2697174.