Final Industry Analysis Paper

Make sure that all regulatory rules are followed to

Info icon This preview shows pages 12–14. Sign up to view the full content.

Make sure that all regulatory rules are followed to avoid harsh punishments. Healthcare Reform The enactment of the new healthcare law has changed the healthcare system as a whole. United Healthcare should anticipate the effect of healthcare reform on its projected costs and revenues. They should also adjust its rates and premiums accordingly to prepare for new healthcare rules WellPoint Problem Solution Healthcare Reform The enactment of the new healthcare law has changed the healthcare system as a whole. WellPoint should anticipate the effect of healthcare reform on its projected costs and revenues. Healthcare Cost Over the years Healthcare cost has risen and so has WellPoint’s revenues After the new healthcare reform bill, healthcare cost will be mandated to lower. Implement strategic initiatives aimed at reducing undue costs, as well as consider increasing contingencies. This will help when the company is not earning as large revenue as before. Adverse Securities & Credit Market Adverse securities and credit market conditions will significantly affect WellPoint’s ability to meet liquidity needs. WellPoint should look into the acquisition of small insolvent insurance companies that will give WellPoint broader exposure to new markets & geographic locations. This will strengthen WellPoint’s existing market shares. Humana 12
Image of page 12

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Problem Solution Maintaining the Integrity of Data Humana has failed to properly maintain the integrity of data, to strategically implement new information systems, and protect proprietary rights to their system. Humana should acquire additional information systems securities. They should also take steps to reduce the number of systems they operate, upgrade & expand information system capabilities. They should migrate existing business to fewer systems. Centers for Medicare & Medicaid Services Humana will be materially impacted by Centers for Medicare & Medicaid Services (CMC’s adoption of the new coding set for diagnoses. Take necessary steps to implement the new coding set for diagnoses. Significantly expand the number of codes utilized. Various Legal Actions Humana is involved in various legal actions & governmental & internal investigations, including an ongoing internal investigation & litigation & government request for information related to certain aspects of their operations. Humana should obtain adequate insurance coverage for these potential liabilities including punitive damages, where permitted. Hire audit analysts that go through all of their files and business practices to make sure they are not liable for any future wrongdoings. Top Three Issues Facing the Healthcare Industry Problem Solution Mergers & Acquisitions Activity Because of the new healthcare law, many healthcare companies will merge with or acquire other healthcare companies to keep the revenues of the companies high.
Image of page 13
Image of page 14
This is the end of the preview. Sign up to access the rest of the document.
  • Fall '12
  • Ashley
  • Financial services, .........

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern