The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants

February 2015 Edition of Plan Management

[By Douglas B. Sherlock CFA] Sherlock@sherlockco.com

Please find attached, the February 2015 Edition of Plan Management Navigator.

In this issue, we highlight characteristics among Independent/Provider-Sponsored plans in the lowest 25th percentile in costs, which we consider Best-in-Class health plans. We found that Best-in-Class plans operated with administrative costs that were lower by $10.99 PMPM, excluding Sales and Marketing and Medical Management.

A lower Staffing Ratio was mainly responsible for low costs, while low Staffing Costs also contributed. Non-Labor Costs, however, were actually higher in the Best-in-Class plans. Almost every functional area was lower for the Best-in-Class plans with IS, Claims, and Corporate Services most responsible for overall low costs.  Finance and Accounting was the exception in that its costs were higher.

The Analysis

To perform this analysis, we endeavor to quantify and eliminate the effect of factors largely beyond management control. We then isolate and measure the specific contributing factors that are more susceptible to management.

In addition, we are building the universes for the Sherlock Benchmarks. For the Independent/Provider-Sponsored universe we have 23 plans committed to participate in this year’s study. This is up by 44% from last year and collectively, the committed plans serve 10.5 million people with comprehensive products.

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Participation Solicitation

We are meeting to finalize the survey form in about one month, will distribute the survey forms in late March, collect the completed surveys in May and publish results beginning in July. Participation entails notable efforts on your part since useful outputs require relatively granular inputs. However, the cost is relatively modest.

Link: Navigator – February 2015

Assessment

Please contact me if you are interested in participating. You will be among good company.

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Conclusion

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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

• PRACTICES: www.BusinessofMedicalPractice.com
• HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
• CLINICS: http://www.crcpress.com/product/isbn/9781439879900
• ADVISORS: www.CertifiedMedicalPlanner.org
• FINANCE: Financial Planning for Physicians and Advisors
• INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
• Dictionary of Health Economics and Finance
• Dictionary of Health Information Technology and Security
• Dictionary of Health Insurance and Managed Care

Filed under: Health Insurance, Healthcare Finance | Tagged: America's Health Insurance Plans, Douglas B. Sherlock CFA, health insurance plans, Plan Management Navigator | 1 Comment »