Jim Nahill

Babson Professor William Bygrave, Case Director

Carl Hedburg, Case Writer

Arthur M. Blank Center for Entrepreneurship

© Babson College, 1998.

Abstract

A pharmacist looking for a career change enrolls in Babson's MBA program and begins planning his new business venture in the school's entrepreneurship "hatchery." When he was working in the health care field, Nahill noticed how the number of uninsured people was increasing, even when the unemployment rate went down. He also observed how the cost of providing health insurance benefits was increasing rapidly and causing companies to look for less expensive alternatives. He establishes a company, Access Healthcare Network, that provides discount cards for prescriptions, as well as dental and vision needs. He contracts with major providers of these services, such as drug stores, to provide discounts to users of the card. His planned revenue source is companies and trade associations seeking low cost alternatives to full health and dental benefits. After some initial success, the company faces severe financial problems and Nahill must choose between bailing out or seeking investors to help the company grow.

Location of the company: Boston, Massachusetts

Years spanned by the case: 1996-98

Industry segment: Health care

Stage of the company: Startup

Age of the entrepreneurs: early 30's

Key Words: Entrepreneurship, marketing, healthcare, insurance, medicine, benefits, hatchery

DVD

A 30-minute DVD is available for this case. One of the principals from the case answers questions in a Babson class. Please place orders through ecch.

Teaching Notes

A case teaching package, written by Bill Bygrave, is available for this case. The teaching package includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into a course.