HOMI Foundation: Expanding a Non-profit Family Hospital for Children
The Hospital de la Misericordia (HM), today HOMI Foundation, is a children's hospital located in Bogot (Colombia). It was founded by Jos Ignacio Barberi, Great Grandfather Barberi, in fulfillment of his wife's last wish: to build a hospital for children. It officially opened its doors in 1906. Great Grandfather Barberi conceived HM as a non-profit organization to be led by the members of the Barberi family. After the founder, three generations of Barberi family members have assumed the direction of HM: Rafael Barberi Cualla (Grandfather Barberi), Rafael Barberi Zamorano (Father Barberi), and Mauricio Barberi Abad a. Mauricio Barberi (appointed Director of HM in 1992) had to face a demand-based health system, under which HM was paid according to the amount of patients treated and there were not more subsidies from the State. Therefore, Mauricio had to begin a process of reengineering in HM, in order to become a competitive organization within the health market. HOMI was later impacted by the health system crisis, which delayed the payments it had to receive for its services. The case is established in April of 2014, in the midst of the health sector crisis. Despite the situation, Mauricio Barberi decided to analyze two options to expand the services: to build a Pedatric Center to expand the facilities outward in the north of Bogot , or to build a Childhood cancer center in the current location. The risky context that surrounds this decision begs for multiple questions about his persistence on this idea and the suitability of said decision for HOMI Foundation. Even more, although Mauricio does not consider to do nothing, as a third option, the case invites to consider it in the last step in the discussion of the case, because this option is also viable from a perspective that does not consider family issues. The answers to these questions lie in the power of the family firm's legacy and entrepreneurial legacy, which is the focus of the case. Universidad de Los Andes' case collection.