Sure Care Health Maintenance Organization is seeking a managed care contract with a local manufacturing plant.

Sure Care Health Maintenance Organization is seeking a managed care contract with a local manufacturing plant.

Discussion 1

 

Break-even Analysis

 

Sure Care Health Maintenance Organization is seeking a managed care contract with a local manufacturing plant.

 

Sure Care estimates that the cost of providing preventative and curative care for the 300 employees and their families will be $36,000 per month.

 

The manufacturing company offered Sure Care a premium bid of $200 per employee per month.

 

If Sure Care accepts this bid and contracts with the manufacturing firm, will Sure Care earn a profit or loss for the year? How much?

 

Describe the steps you used to solve this question.

 

150 words

 

 

 

Discussion 2

 

Minimizing Errors in Projections

 

Break-even analysis utilizes both current and projected figures. In a rapidly changing economy, there are many individuals who are finding that their initial break-even analyses were incorrect.

 

In your opinion, what could be done to minimize errors in projections?

 

150 words





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