Kitovu Patients’ Pre payment Scheme (KPPS) is a hospital-based model of health care provision operating in Masaka, Uganda. This paper briefly reviews the health care prepayment scheme of the hospital. At the same it also looks at the institutional structure of KPPS and its sustainability. Through a detail SWOT analysis the paper explores the strengths, weakness, opportunities and threats associated with the scheme. Finally it suggests lessons that other MFIs and donors can learn from this experience.