Case Name :      Boston University Medical Center Hospital

Authors :           David W. Young

Source :             The Crimson Group

Case ID :           TCG105

Discipline :        Accounting

Case Length :    07 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

This case describes a “bundled pricing” approach to managed care contracting. Bundled pricing is a contracting strategy whereby a hospital and its physicians share the risk of a fixed price contract. The case raises questions about managed care pricing strategies and hospital-physician relationships. Students must analyze the financial implications of the hospital’s contracting strategy and propose an approach that provides appropriate incentives for physicians while minimizing the hospital’s risk.