It is no secret that medical facilities are few and far between in developing countries, where the poor have limited access to affordable and safe healthcare (which often do not come together). Oftentimes, the less privileged members of the society resort to traditional herbal medicines for diseases (mis)diagnosed by untrained medical practitioners, such as quacks, hakeems, herbalists and witch doctors.

Microfinance institutions can change this paradigm in three ways, as explained below.

Medical Camps for Clients

Many microfinance institutions offer free medical camps for clients to properly diagnose and treat any disease or illnesses clients may suffer from. As an example, Esperanza International, which is a microfinance provider in Dominican Republic, runs short dental and orthopedic programs that are conducted by trained doctors flown in from the United States.

Similarly, FAPE, a microfinance institution in Guatemala, provides low-cost medicines to its clients as well as free medical education to spread awareness, as indicated next.

Training workshops about healthcare issues

Microfinance institutions can easily leverage their distribution channels to educate clients about the importance of hygiene. Basic tips about health care (the importance of regularly washing hands, boiling water before drinking, properly cooking food to kill bacteria, disinfecting needles and razors after use, etc.) can be shared with clients during regular group meetings.

For instance, Grameen Bank has created a list of 16 decisions that guide social and economic improvement in the lives of their borrowers. The following decisions are related to basic health care:

6. We shall plan to keep our families small. We shall minimize our expenditures. We shall look after our health
8. We shall always keep our children and the environment clean
9. We shall build and use pit-latrines
10. We shall drink water from tubewells. If it is not available, we shall boil water or use alum.

Offering Health Insurance

Medical bills can quickly drain the financial assets of the poor as good health care is often expensive in developing countries. The ideal solution would be to improve the presence of health facilities in rural areas and to make the service affordable for lower income groups; however, an alternative solution is offered my micro health insurance. Although micro-insurance is in its infancy and faces several hurdles, health insurance offers unique benefits to the poor.