Mr. Salter: Analyze my managed care with the City and tell me the full cost-profit / loss. Should we renew the contract at present rates, or should we ask for a rate increase, and if so, how much rate increase do we need to cover our (Hays) full cost?

II. Information Given and Used in Analysis

III. Problem Approach

A. Contract Revenue Analysis, Assumptions

B. Contract Expenses Analysis, Assumptions

IV. Contract Go-Forward Options

A. Not Renew Why

B. Immediate (Year 2) Increase in Premium How Much and Why

C. Increase Premium Annually Over Future Years How Much per Year and How Many Years

D. Exclude Selected Services as Carve-Outs Estimate Dollar Amount of Added Revenue

E. Institute Case Management Program Estimate Dollar Amount of Expense Reduction

F. Other Revenue Increase (e.g., Population Increase) or Expense Reduction What and Dollar Impact on Revenue or Expense

V. Recommendation and Support Discussion