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Answer 1
Q1
Client Goal: To determine how to improve its financial situation.
A1
Some possible areas are given below. Great job if you identified several of these and perhaps some others.
  • Magna's revenues
    • Price paid by employer for employee health coverage.
    • Number of employees covered by Magna.
  • Magna's costs (or fixed and variable costs)
    • Magna's main cost components consist of administrative (non-medical) and medical costs (e.g., hospital, drugs, outpatient care)
    • Outpatient costs can be split into internal physician costs versus external referral costs
  • Magna's patient base demographics/overall risk profile which may affect medical costs
Your answer was:

I would want to observe the finance of Magna. I would try to find what't wrong in their accounting balance. If they spend a amount of money for other hospitals, I would try to think other collaborative ways with these hospitals. They can restructure their organization to avoid extra expense.
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