Reference no: EM133636545

Discussion Post: Healthcare Marketing

Question I: Having recently graduated from an evening MBA program where you worked closely with a team of other MBA students throughout your program, you and two other graduates spent hours together and developed a wellness tracker app that you have pretested with consumers. It tracks a person's daily activities, can link them with video to a personal coach, provides regular updates on their fitness goals, and provides rewards to retailers in their area. You have also gotten initial interest from insurance companies as well as small and medium-sized employers as a possible way to link with their health plans to reduce cost if their employees participate. An initial program you have run in a pilot test is promising in early results. Now as you and your partners are considering going for more venture money, you also realize that to be successful a key issue to assess is how to enter the market and where you would be in the life cycle and what challenge that might present. Provide illustrations.

Questions II: Two medical organizations have recently examined their cost structures. The first group is a radiology practice with a significant investment in diagnostic-imaging equipment. The second group is a single-specialty pediatric practice. The cost analysis reveals the following distribution:

Cost (%)	Radiology Group	Pediatric Group
Fixed Cost	70%	20%
Variable Cost	20%	50%
Indirect Cost	10%	30%

Explain the implications of these differing cost structures of each medical group in terms of contracting with managed care organizations.