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Calculate the target cost required for VIP-MD to maintain its current market share and profit per enrollee in 2010 2 Costs in the health care industry applicable to VIP-MD and Doctors Nationwide

1. Calculate the target cost required for VIP-MD to maintain its current market share and profit per enrollee in 2010.
2. Costs in the health care industry applicable to VIP-MD and Doctors Nationwide are expected to increase by 6 percent in the coming year, 2011. VIP-MD is planning for the year ahead and is expecting all providers, including VIP-MD and Doctors Nationwide, to increase their rates by $15 to $340. Calculate the new target cost assuming again that VIP-MD wants to maintain the same profit per enrollee as in2010.

Jun 24 2020 View more View Less

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