Break-even. Sure Care Health Maintenance Organization is seeking a managed care contract with a...
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Breakeven. Sure Care Health Maintenance Organization is seeking a managed care contract with a local manufacturing plant. Sure Care estimates that the cost of providing preventive and curative care for the employees and their families will be $ per month. The manufacturing company offered Sure Care a premium bid of $ per employee per month. a If Sure Care accepts this bid and contracts with the manufacturing firm, will Sure Care earn a profit or loss for the year? How much? b What premium per employee per month does Sure Care need to break even? c If Sure Care wants to earn $ in profit for the year, what is the required premium per employee per month? d What concerns Sure Care in this analysis? 
Breakeven. Sure Care Health Maintenance Organization is seeking a managed care
contract with a local manufacturing plant. Sure Care estimates that the cost of
providing preventive and curative care for the employees and their families will
be $ per month. The manufacturing company offered Sure Care a premium
bid of $ per employee per month.
a If Sure Care accepts this bid and contracts with the manufacturing firm, will Sure
Care earn a profit or loss for the year? How much?
b What premium per employee per month does Sure Care need to break even?
c If Sure Care wants to earn $ in profit for the year, what is the required
premium per employee per month?
d What concerns Sure Care in this analysis?
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