AN EVALUATION OF BUSINESS MODELS IN THE PRIVATE HEALTHCARE SERVICES SECTOR IN ZIMBABWE: A CASE STUDY OF THREE HEALTHCARE COMPANIES IN HARARE

ABSTRACT Business models the in healthcare industry, internationally, have been found to contribute to high cost of healthcare services and poor service delivery. This research aimed at evaluating the business models being used in the private healthcare sector in Zimbabwe, with a view to improve value for the stakeholders. The research philosophy was phenomenological and took a multiple case study design. Three prominent healthcare companies were selected for the study, and a purposive sampling method was used to select the respondents for the study. The study established that the business models in use in the private healthcare services sector in Zimbabwe are following the STOF model, although the model is not yet clearly defined. The costs in the private healthcare system are significantly influenced by private insurance companies. The study also established that, the healthcare industry is too fragmented and therefore unable to influence policy or reform. The research recommended that Government establishes medical centres of excellence that could serve the community at low cost with a provision for flying in specialists to serve at the centre when required. Government is also urged to relax regulations regarding advertising of medical services to promote healthcare competition and improve on service quality.