IB Case Study: Primedic Health Clinics

IB Case Study: Primedic Health Clinics

The main core governing the Primedic health clinic was the concept of prevention and early diagnosis. According to its founder, most of the patients did not have this concept and rushed to the hospital at the late stages of the illness, which are too expensive and elusive. Also, the strategy that Primedic had adopted, insurance model where members were to subscribe to membership, was innovative since most of the health cost in Mexico was paid out of pocket. The main target of the company was corporate employees and later the focus was based on the economic pyramid in the society where the low-class individuals could also have an advantage (Hamermesh, Garcia-Cuellar, and Margulies, 2011).

Although the company was faced with major challenges such as capital for expansion, selling of membership since this was a new concept in Mexico, and marketability of the services, Primedic attracted interest from reputable organizations such as Endeavors and IGNIA. The endeavor was an NGO, which aimed at awarding the best entrepreneurs in the society. Since the Primedic idea was innovated and creative as it advocated for early diagnosis and frequent checkups as well as the use of insurance for cheap access to health service across all status in the economy, it lured this organization leading to the founder being awarded in 2008. Also, exposure in Endeavor marketed the company and due to Paramedic’s focus on the poor people, IGNIA Company identified the opportunity in the company for investment since this was it a core value.

Due to the challenges that the company experience in its initial growth, it hired and expert, Pablo Salazar, in 2010 who scrutinized and evaluated the company’s source of the problem. In his recommendations, he reviewed the payment intervals from monthly to annually, which he thought was rigid to clients to quarterly and semiannually and changed the prices respectively. He also increased the payment channels, Oxxo store, which limited the customers to payment and renewal of membership. Furthermore, he fixed incentives to the in HPs compensation to encourage the longevity of membership. He also suggested the inclusion of nurses in the sale of the idea since they are highly regarded in the society hence would increase the membership. Additionally, he proposed the payment in three installments, which was more flexible to the clients.

Moreover, removal of extreme penalties encourages repurchase of membership. Also, Pablo defined the strategy were the company would focus more on the corporate employee due to the ease of collection of money, lower churn rates, longevity of membership and among other benefits. He also devised new marketing strategies and information system that would enhance the sale of membership and better interaction with customers. Lastly, Pablo alteration of the doctors’ schedule to include nutritionist and dermatology enhanced the utility of the customer. About these changes, Pablo model rejuvenated the growth of Primedic health clinics.

According to the new model incorporated by Pablo, IGNIA Company should invest in Primedic Company. This is because the company had already exhibited growth from these changes that promise a positive aspect at the end. Furthermore, failure to invest will lead to the collapse of the company resulting in total loss of both organizations. Lastly, it would be irrational to depart the investment at this interval given some resources IGNIA had invested in terms of time, human resource, and capital.




Hamermesh, R. G., Garcia-Cuellar, R. & Margulies, L. (2011). Primedic- providing primary care in Mexico.



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