GREEN GUARD CARE case study

 

 There is need for further analysis on since a myriad if reasons can be the reason for the rise in visits.  Such an analysis could go a long way in exploring whether the increased visits are due to factors that can be mitigated at the Arc Electric visits. The management of Green Guard Care will explore ways in which can get approach the Arc management to detect any kind of malpractice by their employees which could be causing the higher cases of physician visits. Further analysis to determine whether there is more enrolment of employees in the program. In case of such a scenario, there would be a need to enter into new negotiations with the Arc management on revision of the terms of the contract.  In addition, the increased need among the employees to remain healthy means that the management can negotiate on health care providers for less payment as the number of physician visits increases. Reducing costs will lead to improvement in profits (Barnes, 2001).  This means that cost could be reduced on reimbursements to physicians who participate in the insurance plan offered by Green Guard.

 

The profit for physician’s visits is bound to be less than that of hospital and surgical services since there is a higher increase in cost associated with more physicians visits between July and august .

 

Hospital and surgical services – 55 % = 137.5

Physicians visits – 30 % = 75

Others – 15 % = 37.5

 

The allocation for $250 premium is not reasonable given that there is a continuous increase in cost of all services offered by the health care plan.  The two months utilization indicates that the premium per visit should be increased so as to cater for the cost and a reasonable profit margin.

Reference

Barnes, D. (2001). Understanding business: processes. Psychology Press.