Health

Atlanta, Georgia has a very diverse work force, consisting of men and women of various ages, ethnic groups, skills, and education. Many people live and work in one of approximately 14 counties that make up the Atlanta region. It is not uncommon for an employee to drive close to 100 miles one way to get to work. The employer base is diverse as well, consisting of large and small employers that range from entrepreneurs; healthcare services; local, state, and federal government offices; information technology; higher education; landscaping; personal services; banking; and the fast-food industry. Now that we have some background information, let's learn more about the ABC Insurance Company located in Atlanta.

The ABC Insurance Company has been very aggressive and quite successful in recruiting companies, organizations, and individuals to join its managed care plans. Their ranges of services and rates have been extremely competitive. Their employer base is spread out among the 14 counties, which has been attractive to many employers. The ABC Insurance Company has been quite successful in selling its managed care insurance program to employers and organizations, so what is the issue?

Verde Greene Hospital has an excellent reputation for quality in maternity care, cardiac rehabilitation, and orthopedic medicine, and it is the only hospital in town to have received the Magnet Award for Excellence in Nursing. A sizable number of employer groups as well as employees, who have insurance coverage with ABC Insurance Company, want Verde Greene Hospital to be included in the network as a participating hospital.

When ABC insurance company approached Verde Greene Hospital to recruit it as a participating provider in their managed care plan, Verde Greene Hospital was very delighted to be asked. In fact, the hospital’s overall response was quite positive. However, there was one contractual stipulation that Verde Greene Hospital needed prior to signing any contracts and...