VIP-MD is a health maintenance organization (HMO) located in North Carolina. Unlike the traditional fee-for-service model that determines the payment according to the actual services used or costs incurred, VIP-MD receives a fixed, prepaid amount from subscribers. The per member, per month rate (PMPM) is determined by estimating the health care cost per enrollee within a geographic location. The average health care coverage in North Carolina costs $377 per month, which is the same amount irrespective of the subscribers age. Because individuals are demanding quality care at reasonable rates, VIP-MD must contain its costs to remain competitive. A major competitor, National Physicians, entered the North Carolina market early in the current year with a monthly premium of $334. VIP-MD wants to maintain its current market penetration and hopes to increase its enrollees in the current year. The latest data on the number of enrollees and the associated costs follow:

Age	Enrollment in Current Year				Projected Enrollment Next Year				Average Monthly Cost in Current Year
14		46,588				49,877			$	11,148,772
514		83,356				85,563				10,060,532
1519		96,773				96,787				8,437,724
2024		67,146				68,782				9,540,324
2534		134,396				133,454				26,433,108
3544		167,776				176,346				38,883,008
4554		86,396				91,789				22,742,836
5564		99,324				102,823				28,692,612
6574		157,188				162,459				49,519,044
7584		68,795				73,365				33,433,660
85 years and older		24,399				27,749				24,287,375
		1,032,137				1,068,994			$	263,178,995

3. Identify the critical success factors for VIP-MD. How can the HMO maintain its market share?