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    HCA 341 Case 2 Project

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    Vanesa Dominguez
    This document discusses the case of Chesapeake Health Plans, a large non-profit managed care organization (MCO) in Virginia. It provides an overview of Chesapeake's background, competitors, financial performance, and potential solutions. Specifically: Chesapeake serves over 400,000 members across 15 counties in Virginia and is accredited with an "Excellent" rating. It competes with larger MCOs like WellLife, Signet Healthcare, Proxima, and Sparta. From 2008-2009, Chesapeake increased its net income by $9.1 million while decreasing its long-term debt. The document analyzes Chesapeake's financial ratios and identifies potential solutions like

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    HCA 341 Case 2 Project

    Uploaded by

    Vanesa Dominguez
    514 views16 pages
    This document discusses the case of Chesapeake Health Plans, a large non-profit managed care organization (MCO) in Virginia. It provides an overview of Chesapeake's background, competitors, financial performance, and potential solutions. Specifically: Chesapeake serves over 400,000 members across 15 counties in Virginia and is accredited with an "Excellent" rating. It competes with larger MCOs like WellLife, Signet Healthcare, Proxima, and Sparta. From 2008-2009, Chesapeake increased its net income by $9.1 million while decreasing its long-term debt. The document analyzes Chesapeake's financial ratios and identifies potential solutions like

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    This document discusses the case of Chesapeake Health Plans, a large non-profit managed care organization (MCO) in Virginia. It provides an overview of Chesapeake's background, competitors, financial performance, and potential solutions. Specifically: Chesapeake serves over 400,000 members across 15 counties in Virginia and is accredited with an "Excellent" rating. It competes with larger MCOs like WellLife, Signet Healthcare, Proxima, and Sparta. From 2008-2009, Chesapeake increased its net income by $9.1 million while decreasing its long-term debt. The document analyzes Chesapeake's financial ratios and identifies potential solutions like

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    514 views16 pages

    HCA 341 Case 2 Project

    Uploaded by

    Vanesa Dominguez
    This document discusses the case of Chesapeake Health Plans, a large non-profit managed care organization (MCO) in Virginia. It provides an overview of Chesapeake's background, competitors, financial performance, and potential solutions. Specifically: Chesapeake serves over 400,000 members across 15 counties in Virginia and is accredited with an "Excellent" rating. It competes with larger MCOs like WellLife, Signet Healthcare, Proxima, and Sparta. From 2008-2009, Chesapeake increased its net income by $9.1 million while decreasing its long-term debt. The document analyzes Chesapeake's financial ratios and identifies potential solutions like

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    Case 2- Hospital

    Performance
    By: Vanesa Dominguez, Jenna Gillespie, Stephanie Herrera,
    Elizabeth Sturdy
    ● Competes with other larger organizations such as:
    -Wellife Signet Healthcare, Proxima, and Sparta
    ● Must satisfy patient needs, meet all expectations, and provide quality
    care in order to qualify and remain accredited
    ● Must find a way to better utilize resources
    ● Maximize efficiency of the organization and ensure
    that the organization is operating at a competitive
    level
    Historical Background
    ● Largest non-profit MCO in Virginia
    ● Prepaid health coverage to more than 400,000
    members in 15 counties
    ○ Cities include: Richmond, Norfolk, Virginia Beach,
    Arlington, Alexandria, and Roanoke
    ● Received accreditation from the National Committee
    for Quality Assurance (NCQA)
    ○ Accreditation level: Excellent
    ● Products include: HMOs, PPOs, POS plans, and
    Medicare HMOs
    Economic Background

    Service Revenue
    Generated by
    Chesapeake Health
    Plans:
    Economic Background
    ● Primary Competitors: WellLife, Signet Healthcare, Proxima, Sparta
    ○ Operate in the same service areas and have similar product mix
    ○ All have financial resources that make them a threat
    HMO Number of Counties 2009 Total 2009 Total Assets
    Served Enrollment (000s)

    WellLife 23 516,858 $408,707

    Signet Healthcare 15 360,252 178,662

    Proxima 15 247,109 144,982

    Sparta 28 205,296 103,504


    Financial Background

    ● Revenue exceeds
    expenses resulting in a
    positive net income
    ● Since 2008, Chesapeake
    increased net income
    by $9.1 million
    Financial Background

    ● There was a decrease in cash


    but an increase in marketable
    securities
    ● Long term debt has decreased
    by $12.9 million from 2008 to
    2009
    Financial Background

    ● There is a positive net flow from


    Operations in the amount of
    $27.8 million during 2009
    ● There are negative net cash flows
    from both Investing and
    Financing activities
    ● Good financial position and paid
    off the majority of long-term
    debt
    Reports of Chesapeake’s Financial Analysis
    Du Pont Analysis
    Reports of Chesapeake’s Financial Analysis
    Reports of Chesapeake’s Financial Analysis
    Reports of Chesapeake’s Financial Analysis
    Other Operating Data
    Potential solutions
    ● Reduce or lower administrative costs
    ○ Telemedicine
    ○ “Going Green”
    ● Provide incentives to enrollees to control patient visits per year
    ○ Reduce or control high utilization rates
    ● Reduce premium costs
    ● Promote alternative preventive care options
    ● Reduce readmissions
    Results of Positive Solutions
    ● Telemedicine & “Going Green”
    ○ By implementing telemedicine, Chesapeake is able to lower their Inpatient
    expenses & increase their liquidity to meet their financial obligations.
    ○ Reduces expenses by occupying less overnight stays at hospitals
    ○ Patients diagnosed and treated earlier often have improved outcomes and less
    costly treatments.
    ● Provide incentives to enrollees to control patient visits per year
    ○Primary care : weekly follow ups with patients through telemedicine technology.
    ○Case management and data analytics : Health systems can work with physicians to
    use analytics and with patients to decide on which care setting is the most effective,
    safe, and efficient.
    Perceptions of Solutions by Interest Groups
    Consumers

    ● Innovating
    ○ Job security
    ○ Telemedicine
    ○ Upward mobility
    ○ Customer focus
    ○ Funding
    Stakeholders
    Employees

    Employers
    Questions?

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