Understanding Impact Business Models: Health and Wellness

What is the intent of the Impact Business Model?

How do I assess my company’s eligibility for this Impact Business Model?  

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment? 

My company may be eligible for this IBM. What supporting information do we need to provide? 

Concepts in the B Impact Assessment

What is the intent of the Impact Business Model?

Achieving a shared and durable prosperity for all calls for individuals to be able to live in good health. Global health challenges pose a threat to individual well-being and are deeply connected to the issues of social inequality and sustainable economic development.

Some companies create or distribute products or services that are designed to solve a particular health or wellness concern. The Health and Wellness Impact Business Model (IBM) recognizes companies that sell products or services that can be directly attributed to promoting the health and wellness of individuals. This IBM covers a wide variety of products and services, from research-based medicine and medical care that cures specific illnesses to medical equipment and technology, as well as products and services that support health and wellbeing, such as sporting equipment and yoga.

The Health and Wellness Impact Business Model is found in the Customers Impact Area in the B Impact Assessment.

How do I assess my company’s eligibility for this Impact Business Model?  

Companies may be eligible for the Health and Wellness IBM if they: 

• Earn revenue from a qualifying health or wellness product or service whose outcome is directly tied to improved or maintained health and wellness

• Earn revenue from a product or service whose primary impact is human health. Products or services that create positive outcomes for both humans and the environment (for e.g., organic food products) should be captured in another IBM in the Environment Impact Area.

What are some examples of products and services that have this impact?

The following practices are common examples of practices captured in the Health & Wellness IBM:

• Medical offices, including doctors, certain services provided by dentists, urgent care, and other specialist medical offices/services. 

• Health insurance companies.

• Certain medicine and vaccine suppliers, including pharmaceutical manufacturing companies and pharmacies.

• Medical equipment and technology – examples include: 

  • bandages and first aid equipment 

  • accessibility equipment like wheelchairs

  • stethoscopes 

  • telemedicine software

• Prescription glasses.

• Service companies that promote an active lifestyle, such as yoga studios, sports leagues, or a gym subscription service.

• Sporting equipment such as snowboards, baseball gloves, sailing equipment.

My company may be eligible for this IBM. How do I open this IBM in the B Impact Assessment? 

If you are considering opting into this IBM, you will have to answer specific questions about the impact of your product/service that will determine which Impact Business Models you see in your BIA. These questions, called gating questions, ensure that you see the content that is most relevant to your company in your assessment. 

To find the gating questions for the Health and Wellness Improvement IBM, navigate to the Customer Impact Area and search for the questions titled “Customer Impact Business Model Introduction” and “Customer Focus of Product or Service.”  Respond “Yes” to these questions. 

This will open the questions “Beneficial Product Type” and "Health and Environmental Impact", which you should answer in the following way.  Please select ONE option per product line in the question ‘Beneficial Product Type’. You may select an additional option if your product line has two separate attributes.

To ensure that the Health and Wellness Improvement Impact Business Model shows up, answer the gating questions as shown in the images above. Any deviation from this will prevent the Health and Wellness Improvement IBM from becoming visible in your BIA. 

My company may be eligible for this IBM. What supporting information do we need to provide? 

Depending on the answer option in the question “Health Product Description”, the following types of documentation can be useful to prepare and provide:

• A company claiming its food product as a healthy alternative to products that are traditionally unhealthy must demonstrate two key aspects for verification: first, that the product meets established nutritional guidelines defined as “healthy” by a credible third party that uses measurable parameters for specific product categories, typically a government agency like the U.S. Food and Drug Administration. Second, the product must be shown as an accessible new alternative in a market where consumers previously lacked a healthy equivalent.

• Multivitamins, supplements, and herbal medicines can be recognized if there is formal documentation that their composition has been verified by a qualified third party to meet high standards of quality, safety, and efficacy. There are several paths that a company can take to demonstrate that they have been certified or otherwise verified by an independent third party to meet the requirements.

• Companies that sell cosmetic and personal care products must provide third-party verification to confirm their products' effectiveness in treating health conditions.

• Sporting goods and activewear may be considered if there is evidence that the product was intentionally designed for this purpose and includes technical specifications that support healthy activities. Products exclusively used for sporting or exercise activities (e.g., surfboard)  are applicable in this section.

• Products regulated as drugs/medicines are eligible if the company has evidence that all products are verified for their quality, safety, and efficacy in all markets that are sold.

These are some examples of evidence that your company can provide during the Verification stage to confirm the applicability of the Impact Business Model. These examples are not exhaustive – depending on your company’s specific business model or context, your analyst may require additional or different documentation. 

Concepts in the B Impact Assessment

Beneficiary - An individual for which your company intends to provide a positive impact through its products/services. For some companies "beneficiaries" and "customers/clients" mean the same thing, while for other companies they will be distinct.
For example, a company that sells professional development courses to individuals would consider both its customers and beneficiaries to be the individuals it serves. However, a company that sells solar-powered lanterns to NGOs in emerging markets, which in turn distributes them to underserved individuals, would consider its clients to be the NGOs and its beneficiaries to be the end-users of its product.

Near-term outcomes - This refers to the immediate or near-future results or consequences of a particular event, decision, or action. These outcomes typically occur within a relatively short period, ranging from a few days to a few months. Near-term outcomes are often tangible and measurable, and they can influence subsequent actions or decisions. Unlike outputs, which focus on what is produced/delivered, near-term outcomes focus on the impact or changes that occur as a result of the outputs. They are the effects or consequences of utilizing or implementing the outputs.

Long-term outcomes - The results or consequences that occur over an extended period, usually spanning months, years, or even decades. Long-term outcomes often have a broader impact and may be less immediately visible or measurable than near-term outcomes. For instance, long-term outcomes in the context of environmental conservation could include the restoration of an ecosystem, the reduction of carbon emissions over several decades, or the preservation of endangered species.