HCM 625 California Intercontinental University MCO Variance Analysis
Description
Background information. A large national MCO recently entered a major Southwestern metropolitan market. The managed care plan anticipated that, with an intensive advertising campaign and sales effort, it would have 75,000 subscribers after two years. It planned on charging a premium of $1,800 per subscriber. Marketing and personnel costs directly related to this effort were anticipated to be $250 per subscriber. Before the MCOàentry into the market, two of the extensive tertiary facilities in the region began to offer their own managed care plans in a PHO arrangement with their medical staff. The result was aggressive discounting of the managed care premiums. The national MCO chain dropped its premium to $1,400 per subscriber. Direct costs remained the same, yet because of the competition, the national MCO was only able to enroll 45,000 subscribers.
However, was their effort a success? For this essay, calculate the following values and use them as part of an argument to justify whether their efforts were successful:
- Calculation #1: What was the variance because of the failure to get the gross marketing contribution?
- Calculation #2: What was the variance due to the lack of enrollment success?
Assignment Instructions: Write a paper thoroughly exploring whether the MCOàenrollment campaign was a success. Be sure to support your analysis using examples and insights from your textbook and additional research conducted throughout the course.
In your paper, integrate at least four peer-reviewed sources along with their citations and references. Your paper must be APA formatted and include at least 1500 words.
Question 2
Your goal for this activity is to provide a summary involving:
- The biggest or most important point from the course you found interesting and enjoyed.
- If you could take one idea from the course, back to your work, what would it be? Why?
- One lesson you wish others to learn from your experience in the course.
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