Final Business Model and Strategic Plan

Final Business Model and Strategic Plan

BUS475

Final Business Model and Strategic Plan

A company that has a clear vision and mission statement is setup to be successful. The mission of Magellan Health is to provide its customer’s with greater insights into their health, while keeping healthcare affordable, and returning value to its shareholders. Those are three very different goals. What may benefit their customers may not benefit their shareholders. Additionally by keeping costs lost their institutional plan members may benefit but at the expense of the patients or physicians. This paper will outline the various steps Magellan will take to deliver on all three of these principles.

Target Outcomes and Measuring Results

The most obvious thing a business can do to be successful is to maintain its profitability. Without turning a profit and maintaining cash flow the business would be forced to close its doors. Therefore, financial objectives are one of the most important considerations. With the recent passage of the Affordable Care Act, an insurer can no longer deny coverage for pre-existing conditions. Additionally all members of the public are required to be insured by 2014 as there are penalties for, not purchasing health insurance. This influx of new additional clients has created a boon for the healthcare industry, (La Monica 2015), insurance companies will face rising costs as more people join plans with pre-existing conditions.

To ensure that the risks associated with new and existing members of their plans appropriately match their rewards, Magellan health has partnered with Informed DNA. This partnership will allow Magellan Health to provide genetic screening for susceptibility to disease, providing patient value. However, it will additionally enable Magellan to better manage costs and assess risk factors for certain patients.

In order for our strategic objectives to work, our physician network will be tasked with educating customers on the...