Case Study
Costs of Health Education and Health Product Distribution: Bandhan's Experience in India
Analyzing costs and revenues associated with provision of health services
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This paper analyzes the financial costs and revenues associated with Bandhan’s provision of health services in West Bengal, India.
Bandhan’s health protection package, developed as part of the Microfinance and Health Protection initiative, aims to provide microfinance practitioners with practical information about the cost of offering nonfinancial health services in conjunction with a microfinance program.
The analysis is based on Bandhan’s three years of experience in offering health protection services. The paper states that:
- Bandhan spends about USD 3,200 in net, direct marginal costs and USD 5,500 in net total costs per branch per year;
- Bandhan caters to an average of 3,200 clients per branch providing access to practical health education and affordable health products;
- Bandhan uses a volunteer network of entrepreneurs who sell health products in local communities, generating revenues that contribute to its cost;
- In 2009, Bandhan’s costs amounted to about USD 16,000 in net direct costs and USD 28,000 in total net costs to serve more than 16,000 clients;
- For MFIs with positive net earnings, this can be considered a high-impact investment in social mission.
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