Medicare and Medicaid

Medicare denotes the Federal government supported health insurance targeting individuals aged 65 years and above. Qudrat-Ullah, and Tsasis, (2017) argues that a young person suffering a permanent kidney disease might also be enrolled for the insurance. Since Medicare covers most if not all costs of treatment, then, UnitedHealth Group Inc. would incur an influx in the number of patients served aged 65 years or older seeking medical attention.

Patients over 65 years who seek services from UnitedHealth Group Inc. would get prepayment for their inpatient hospital care, hospice care, skilled nursing requirements and part of home-based care. However, the beneficiaries ought to pay a monthly premium in order to get covered, as the money would be used to pay for medical costs and pay medical practitioners who offer medical services within UnitedHealth Group Inc. the facility sells drugs, and the increased Medicare payer from 50% to 70%, then the Medicare would cater for most if not all of the prescription drugs for patients they handle. Patients who choose UnitedHealth Group Inc. as their primary healthcare and dispensing chemist would benefit from the increased disbursement.

Professional Turnover

An increase in turnover rates from 5% to 10% annually might result in detrimental impacts on UnitedHealth Group Inc.’s healthcare staff, patients and the hospital in general. According to Wolper, (2014), the firm would incur additional contingent staffing costs. It is estimated that the turnover in a facility like UnitedHealth Group Inc. consumes two to three times the normal pay of a regular personnel in the facility. The 10% turnover affects the direct costs within the facility as it impairs delivery of key services to the patients.

Directs costs associated with turnover in UnitedHealth Group Inc. include recruitment, training and orientation, plus additional costs incurred terminating the workers’ contract. According to Qudrat-Ullah, and Tsasis, (2017), indirect costs incurred by the healthcare facility include diminished productivity, pressure on the remaining staff, and owing that more staff turnover looms. The overall healthcare outcomes of the patients reduce. UnitedHealth Group Inc. might resort to travel, contract or agency nurses to deliver services to the facility replacing the practitioners who quit.

A 10% annual turnover rate results into acute shortage of the staff needed to perform core duties to the institution, which affects patient outcomes and satisfaction. Patients attended by satisfied nurses would translate the same satisfaction, leading to improved healthcare outcomes. However, patients attended by dissatisfied medical staff or those who intended to quit their jobs complained of poor health outcomes. A 10% turnover rate is associated with high mortality rate in healthcare facilities. Patient infection while undergoing treatment would increase by over 30% under such high turnover rates, (Wolper, 2014).

Demand for Services

An increase in demand for healthcare services by 20% would be treated like other markets by UnitedHealth Group Inc. the facility might increase the cost of key services rendered, while maintaining the quality of healthcare services. The high turnover rate already left a deficit that ought to get filled by new recruits to handle the current number of patients. However, an influx by 20% means that UnitedHealth Group Inc. would be under a severe threat to their operations.

Projected income statement

Project balance sheet

Projected financial requirements

An increase in Medicare change from 50% to 70% and Medicaid from 5% to 10% means that UnitedHealth Group Inc. must have resources that meet the growing demands. It is projected that from Medicare and Medicaid the institution requires a budget increment by $30,300,000 to expand its operations to meet the growing demands. The annual professional turnover rates increment from 5% to 10% would also hinder basic operations from taking place. The healthcare facility requires about $ 20,000,000 to recruit, train and equip new staff who would replace the outgoing staff. Staffing costs would rise because the institution would experience more employee turnovers. Increased services by 20% in a year requires a reinstitution of the key operations to meet the growing demands. The healthcare facility currently serves over 11 million customers, which means that the number would rise by almost 3 million. The 20% increment in customer

 Financial sources

The total budget intended to meet the three key changes that took place at UnitedHealth Group Inc.

The UnitedHealth Group Inc. requires an additional budget of $ 60,300,000 to accommodate its growing demands. Penner, (2014) adds that the firm has two alternatives of sourcing the funds needed to meet the needs of the institution. With the money at hand, UnitedHealth Group Inc. would be able to efficiently offer quality services to patient with little or no challenges.