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Explain cost-setting methods and demonstrate how cost setting affects the revenue cycle.

Assignment 3: Case Study 9 – Dropping Small-Group Insurance Products

Read Case Study 9 from Multi-Sector Casebook in Health Administration, Leadership, and Management, and respond to the following:

Summary of the major facts – Summarize the facts in narrative or outline form. Include the most important and pertinent incidents in the situation. (Do not simply restate the entire case.

Problem(s) – The facts of the case reveal one or more problems that require attention. Indicate at least three (3) problems affecting GreenHealth and explain their importance.

Alternative Solutions and Probable Outcomes – Analyze optional courses of action. This is one of the most important parts of the analysis. Remember that a decision not to act or to do nothing is always an alternative. However, doing nothing also has repercussions – sometimes worse repercussions than any other action. Identify three alternatives you would present to the senior leadership team.

Recommended Solution – Recommend 1 solution per problem (3 recommendations total). Each recommendation should include a justification for the action, how the action would be implemented, and the probable outcome. While some of this information has been included in previous sections, it is still important to present the recommendation in its final form and to justify its selection.

Include two or more references to support your rationale.

Extra Credit (15 points): You may earn up to fifteen (15) points of extra credit for submitting a voice or video recording in which you present your Case Study. (This is in addition to submitting original deliverable requirements)

Adapted from: Kilpatrick, A. O., & Johnson, J. A. (1999). Human Resources and Organizational Behavior: Cases in Health Services Management. Chicago, IL: Health Administration Press.

The specific course learning outcomes associated with this assignment are:

Apply the health financial planning process and it’s components in financial management activities

Examine the complexity of cost and break-even analysis in health care organizations.

Explain cost-setting methods and demonstrate how cost setting affects the revenue cycle.

Analyze the principles of financial planning, management, and budgeting in the health care organization.

Identify the various sources of revenue used in the planning and decision making of health care organizations. (private, public and third party.)

Use technology and information resources to research issues in health financial management.

Write clearly and concisely about health financial management using proper writing mechanics

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