To: Management of MYH Inc.
From: Information Technology Department
Date: 29 September 2012
Manage Your Health, Inc. (MYH) is a Fortune 500 company that provides a variety of health care services across the globe with more than 20,000 full-time employees and more than 5,000 part-time employees.
MYH recently updated its strategic plan, which aims to:
•Reduce internal costs
•Increasing cross-selling of products
•Exploiting new Web-based technologies to improve the development and delivery of its health care products and services
3.Strategic & Plan
Below are some ideas from the Information Technology department: 1.Recreation and Wellness Intranet Project
-MHY Inc. pays 20% more than the industry average for employee health care premium due to the poor health of its employees •Objective
-Help improve employee health to reduce internal cost by negotiate lower employee health care premiums •Benefits
-Estimated saving $30/employee/year for 20,000 full-time employees over next 4 years $30 × 20,000 = $600,000($0.6 million) for each year $600,000 × 4 = $2,400,000 ($2.4 million) for 4 years
-Better employee health leads to better performance in daily company operation -Increase employee motivation and loyalty to company
-Help company built up healthy image to public
2.Health Coverage Costs Business Model
-Health care premiums continue to increase and the company has changed insurance carriers several times in the past 10 years •Objective
-Help company negotiate lower premiums with insurance carriers to reduce company internal cost •Benefits
-Estimated save up $20/employee/year for 20,000 full-time employee over next 4 years $20 × 20,000 = $400,000 ($0.4 million) for each year
$400,000 × 4 = $1,600,000 ($1.6 million) for 4 years
-Help tracking and analyzing current and past employee health care expenses and company health care...