In a joint venture, Acumen Fund and Hindustan Latex will begin the development of hospitals with 25-30 bed capacities throughout India to help address the dearth of low income maternal and child healthcare services.
Acumen’s initial $2 million equity investment in the new company, a 50/50 equity partnership between Acumen and HLL, will support LifeSpring’s plan to open five hospitals in 2008 and thirty across India by the end of 2010. LifeSpring charges between 30-50 per cent of the prevailing market rates. With 80 per cent of all health care expenditures in India out-of-pocket, LifeSpring aims to significantly lessen the burden of rising health costs to low-income communities.
While numerically the effects of such a venture may not seem substantial in relation to the need, if successful it will demonstrate a scalable and viable funding model for future services.