Based on Boston University Medical Center Hospital Case Study on Bundled Pricing

List pros and cons of bundled pricing for each entity.

For HMO (health insurance company)

For Hospitals

For physicians

For patients

Under a bundled pricing contract, what risk/exposure does a hospital have? What can a hospital do to limit its financial risk/exposure?

Under a bundled pricing contract, what risk/exposure does a managed care organization (insurance company) have? What can a managed care organization do to limit its financial risk/exposure?

How should Mr. Richardson handle the determination of a fee per case for the physicians, including consulting physicians and ancillary services?

What is your assessment of the approach Mr. Richardson followed in developing the contract? What advice would you give him about negotiating his next managed care contract?