Challenges 

Increasing Medical copayment in SA

The concept of sustainability among businesses in the 21st century is no longer a nice to have, rather a business requirement.

That seeks to ensure that businesses do not pursue economic gains by compromising the environment and the society that they operate in. Sustainability are means of meeting own needs without compromising the ability of future generations to meet their own needs. Hower, in the medical appliance industry, the adopted linear economy business model does not align with sustainability principles.

Linear economy business model supports a single use and discard of of raw materials and medical appliances. 

As a result, the market is experiencing oversupply and high medical appliance waste output towards the environment. It is further associated with the high cost of medical appliances that prematurely exhaust medical appliance benefits. Leading to subsequent high out-of-pocket payments by members. 

SUSTAINABILITY SOLUTION 

Quadruple sustainability principles

The circular economy business model is a new business trend seeking to advance not only sustainability principles but also aligns with responsible production and consumption of sustainable development goals. 

Which encourages maximising usage of resources to create an infinite ecosystem where a waste of one product becomes an input into another product. Ensuring that businesses pursue their economic gains by being equally responsible for the environment and the society they operate in. As a result, our case study piloted a Circular economy model in Product as a Service PaaS for 6 medical appliances.

To evaluate the efficacy of PaaS towards triple bottom line concepts of sustainability. A buyback program and refurbishment process also supported the overall pilot program.   

Circular work flow

RESULTS 

Model cost efficacy

BENEFITS

Medical Insurance benefits

• Reduce medical appliances cost by at least a third 33.3%
• Increase affordability and sustainability by 2 folds
• Eliminate member out-of-pocket payments by 100%

Beneficiary or Member Benefits

• Zero out-of-pocket contributions
• Potential reduction of medical insurance premiums.
• Universal access to medical appliances

Environmental Benefits 

• Reduce medical appliance waste output to the environment by at least 80%