Answer the following

1. At a recent strategic planning retreat of a 40-person multi-specialty group, the administrator made a presentation that focused on the coming year’s plans to establish the organization’s
first two primary care satellites, which would be located in the two growing suburbs of the community. These new additions would require the hiring of four family practitioners and other support
staff. When the administrator finished her presentation, one of the most senior physicians stood up and said, “This is a foolish expenditure. We’re so busy now in this group, we can’t even see
another patient. Our revenue was up 14 percent according to the previous financial presentation we heard. There is no reason to change what we’re doing.” How might you respond to this physician?
2. The administrator of a small, acute-care hospi­tal is faced with his first managed care contract. He meets with representatives from the prepaid plan to discuss the amount to be paid to the
hospital. The administrator is concerned because the managed care business does not look profitable—the hospital will be reimbursed below its current reimbursement levels. In what ways might the
administrator evaluate this new managed care business in terms of its economic value to his institution?
3. Which method of sales force organization would be most appropriate for
(a) a national company that sells a computerized billing system for small physician practices?
(b) a manufacturer of adhesive bandages and sutures?