This is 2-3 pages assignment. Who wants to help? It dues on this Thursday8/11. Please let me know how much do you want then we can discuss.

Week 6 - You decide Scenario: Back to the Drawing Board! Scenario: In Week Two, you sat in the CFO chair, studied a real world hospital Accounts Receivable (AR) problem with your team, and came up with a Process Improvement Plan to reduce Days in Accounts Receivable and improve cash flow to you hospital. Well the great news is that your plan worked! This morning your Days in AR stand at 67. Not perfect.... but much better, and you have five payrolls of cash on hand right now. Things are looking up for Community Memorial! And then just before lunch you get a call from the Bill Jacobs, Human Resource Director at Commercial Intertech (CI), the largest employer in the community. Bill says, "I wanted you to hear it from me first. We signed a contract yesterday with MegaPlan Health. They will be the managed care organization for all 4,500 of our employees and their families. About 9,000 patients total. I'm sure that you will want to get a contract with MegaPlan as soon as possible. I noticed that your hospital is not on their Preferred Provider Network (PPN), and I am pretty sure that you will want to be, so that our employees can continue using the facility." By the time you thank Bill for the heads up, the acid is already churning in your stomach. In the hospital world, MegaPlan is known for cut-throat tactics, negotiating steep discounts with hospitals, and fighting every claim the hospital makes. Commercial Intertech has every right to contract with any health insurance provider they like, but now you have a problem. If you cannot get a decent contract with MegaPlan and become part of their Preferred Provider Network (PPN), many local patients may bypass your hospital and go the next closest PPN facility. Delivered to your office this afternoon, by no coincidence, is a contract proposal from MegaPlan. It calls for the hospital to provide a 35% discount from charges to MegaPlan and all of its members. And it includes service pre-authorization requirements which will make life very difficult for your business office. You know from experience that the hospital loses money whenever the discount from charges exceeds 20%. Your Role: You are the hospital CFO, trying to solve the managed care problem. Key Players: Dr. John Evans, Chief of Staff: I know you are not going to like this, but probably 1/3 of my practice comes from Commercial Intertech....employees, spouses, kids. I have had multiple generations of patients who all work out there. You need to sign a contract with MegaPlan and soon. I looked at a contract for my own office. It is not great, but if I don't sign I could risk losing many of my long-time patients. And sorry to say this, but if the hospital does not sign......frankly I might have to take my patients elsewhere. Katrina Eaton, CEO: Well, we do need to form a relationship with MegaPlan if Commercial Intertech has selected them. I would suggest preparing your own contract proposal for them to look at. Be reasonable, but make it something we can live with. Remember, we have some power in this situation ourselves. If the Commercial Intertech employees and families cannot use our hospital, they will be forced to travel a long way for care, and may even have to change doctors. That will not make them happy at all. You can bet that the HR folks at the factory will get an earfull from their employees if we cannot come to terms with MegaPlan. Make your own counterproposal, and don't panic. Linda Freed, Business Office Manager: There is simply no way that we can work with MegaPlan. I went through that at another hospital. They make it impossible to get claims approved, and when the payment finally comes it is usually wrong. And then we have to fight for the rest of our money. Don't sign! In fact, tear the contract up and mail it back to HR at the factory. The employees will revolt at the factory when we say NO, and MegaPlan will be sent packing down the road! Nancy Stritmatter, CNO: Well, as you know, my husband works at Commercial, and quite a few of the nurses here are in that situation. What happens if we all cannot even use our own hospital for medical care? I am with Dr. Evans, you'd better just sign the contract they sent, and do it today so that no rumors get started around the hospital about this situation. Our people will panic if they cannot get healthcare here in town! I could even lose some of my best nurses! Assignment: Given the scenario, your role and the information provided by the key players involved, it is time for you to make a decision. If you are finished reviewing this scenario, close this window and return to this Week's You Decide tab, in eCollege, to complete the activity for this scenario. You can return and review this scenario again at any time. So, what will you do? Whose advice makes the most sense to you in this situation, and how will you proceed? Present your comments in a 3-4 pages paper, explaining how you will proceed. Category Points Description Understanding 20 Analysis 20 Execution 30 Total 70 Demonstrate a strong grasp of the problem at hand. Demonstrate an understanding of how the course concepts apply to the problem. Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem. Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly. A quality paper will meet or exceed all of the above requirements