: Management of MYH Inc.
: Information Technology Department
: 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
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 •
Help improve employee health to reduce internal cost by negotiate lower employee health care premiums •
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
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 •
Help company negotiate lower premiums with insurance carriers to reduce company internal cost •
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...
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