Who Cares About Health Care?

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Who Cares About Health Care?. Isadore J. King President and CEO The Wellness Plan. Annual Business Conference University of Michigan Business School October 12, 2001. Dr. Entrepreneur. Gall Bladder Surgery $2,000 or Two For $3,000 Bring a Friend SALE ENDS AT AGE 60. - PowerPoint PPT Presentation

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  • Who Cares About Health Care?Annual Business Conference University of Michigan Business School October 12, 2001Isadore J. King President and CEO The Wellness Plan

  • Dr. EntrepreneurGall Bladder Surgery $2,000 or Two For $3,000Bring a Friend SALE ENDS AT AGE 60

  • Current Drivers of Health Care CostsLaw of Supply and Demand InoperativeHealth Care InflationCost vs. Quality DynamicChanges in the Practice of MedicineConsumers Quality of Life Demands

  • Law of Supply & Demand InoperativeUneducated ConsumerMinimal Consumer Financial ParticipationSupplier (Provider) Induced DemandValue Purchasing Not Effective

  • Health Care InflationSources: www.twv.com/researchlegal/resrchstats.html & HealthINFLATION News, www.healthinflation.com

  • Michigan Average Revenue Per Member Per MonthSource: Baumgarten, Allen. Michigan Managed Care Review Part One, 2001

  • Major Drug Company After Tax ProfitSource: Individual Company Annual Reports20%21%21.5%Average Profit Margin

  • Michigan HMO Before Tax ProfitSource: Kennedy, Sheryl. Urgency Prods HMOs To Become Lean Detroit Free Press. Friday June 2 2000. Fin. Ed. Pg.2E.

  • Michigan HMO After Tax ProfitSource: Baumgarten, Allen. Michigan Managed Care Review Part One, 2001

  • Cost vs. Quality DynamicCurrentQualityCostOptimum

  • Cost vs. Quality DynamicQualityCostOptimumDesired

  • Cost vs. Quality DynamicQualityCostOptimumProjected

  • Changes In The Practice of MedicineBiotechnology Research FindingsTherapeutic Drug AdvancesStem Cell Research FindingsGenetic Research Findings

  • Life Sciences InstituteUniversity of MichiganWe are going to transform the practice of medicine, and this place will be one of the leaders.Ann Arbor News March 2001Dr. Gil Omenn Executive Vice President Medical Affairs University of Michigan

  • Consumers Quality of Life DemandsLiving Longer is Not EnoughLiving Longer and Feeling Good is DemandedConsumers Willing to Assume Greater Responsibility for Health Status

  • Strategies To Deal With UncertaintiesGrowth on the MarginContinuous and Vigilant Cost ControlEvidence Based MedicineOutcome Based IncentivesManaged Health