I have attached answers to part A of case study 2 to help you answer part b. It should follow the same format done in case study part a.

1. Prepare different scenarios that assume that you invest in measures to improve revenues and

reduce utilization (prepare one that shows you reducing utilization, one that shows you

improving revenue, and a third that shows improvement in both

2.Prepare a five year projection of your Hospital internal Revenues and Expenses (again taking

into account inflation and membership growth) that assumes you do take the deal and make

improvements. As you model ways to improve Plan performance by reducing utilization, be sure

that your hospital revenue/expense model reflects the reduced utilization.