Healthy Wealthy and Wise: An Introduction to Microfinance based Group Health Schemes

This document discusses the features and needs of microfinance based group health schemes. Prepared by Microcare Ltd, Uganda, the paper specifically discusses the functioning of the Microcare MFI Group Health Scheme and addresses issues related to health schemes offered by microfinance institutions (MFIs).

The paper also explores reasons for MFIs to provide healthcare schemes to their clients as an additional service, to compliment loans and savings:

• Access to affordable quality healthcare helps clients fight poverty;
• It prevents diversion of productive loans to meet consumptive health care needs;
• The absence of healthcare results in sickness, leading to productivity loss.

The document further enumerates the benefits that accrue to MFIs that run health schemes for their clients:

• Improved client performance in terms of timely repayment and regular attendance;
• Improved client loyalty and retention as health schemes provide a definite long-term benefit of MFI group membership to the client;
• Holistic approach to client welfare;
• Improved image of the MFI with clients, donors and the general public.

Finally, the document describes the functioning of Microcare MFI group health scheme and the manner in which it benefits the clients.