Black MBA - Winter 2008/2009 - (Page 45)

Performance The most glamorous of business plans is worthless if the execution of the plan doesn’t produce profit. “You have to over-deliver in this market- place,” said Johnson. “It’s not good enough for you just to deliver.” And, of course, nothing performs better than a superbly crafted profitable bottom line. – Nicole Allen Focus on Healthcare/ Biotech: Humana Phyllis Anderson, vice president of Marketing for Humana, which participated in this year’s Industry Theatre, discusses some of the unique opportunities in the sector. What prospects do you see for growth in the Healthcare/Biotech sector? The wave of baby boomers aging into retirement will be the biggest prospect for growth in the coming years. Medicare-focused managed care companies, nursing homes, assisted living facilities and senior-focused medical device makers, among others, will all be beneficiaries of the aging population. A large proportion of recommended regulatory changes to the healthcare system involve individual mandates for coverage. Therefore, Humana sees the individual health insurance market as an area where there will be significant growth. Patients want to be engaged in their own healthcare experience. Thus, they will increasingly look for services that connect them with peers facing similar situations, as well as services to [help] sort, filter and substantiate the magnitude of information available. What are the keys to this growth and how does Humana fit into this picture? Sufficient funding for healthcare in retirement is a necessity given the demographic shift to an older population. New technologies must be leveraged and systems developed to lessen the tremendous financial burden this necessity is going to place on younger generations. For example, Humana has developed disease management programs, value-added services such as Silver Sneakers and other wellness initiatives to address the needs of our largest customer segment. The methods and economics of pricing and distributing individual health insurance policies are significantly different from the way health insurance is traditionally sold. This creates the opportunity to win the market early through intelligent product design and distribution. Humana has led the way into this uncharted territory with our innovative Humana One product to address this growing need. What trends (social, cultural, etc.) are having the greatest impact on the sector? The aging of the U.S. population will continue to have a tremendous impact on the healthcare sector. Today, Medicare covers approximately 44 million beneficiaries. By 2030, this number will rise to 79 million. Approximately 60 percent of these boomers are expected to begin retirement with a chronic disease requiring constant treatment, and more than 40 percent are expected to be classifiable as obese. However, by 2030, fewer than two workers will be paying payroll taxes for every retiree. Healthcare is moving toward treatment and monitoring in places other than traditional physicians’ offices and hospitals. Increasingly, patients are asking for ways to integrate care and monitoring with a home setting or using mobile devices. This may transform healthcare from an “episodic” model largely composed of physician appointments and acute care to one of constant care through remote monitoring focused on prevention. How does what you’ve seen in the industry over the past five years influence how Humana is planning for the next five years? Humana has done considerable research over the last five years to determine the needs and preferences of retired persons. We’ve integrated much of what we’ve learned into programs and products designed to improve the health of our members, while also saving money for the Medicare program in ways that make sense. Over the next few years, we believe many more such improvements will be identified and become best practices. Humana, in its attempts to engage consumers, has seen that Americans are increasingly focused on health and healthy living. Indeed, nearly all of the major headlines have health implications (e.g., environmentalism, organic foods and scientific advances). As Americans look to lead healthy lives, we will encourage them through initiatives such as Freewheelin’, our bike-sharing program featured at the [National] Democratic and Republican conventions, and Games for Health, which seeks to keep children active with games similar to Dance Dance Revolution [pads and games] or the Nintendo Wii. mba BlackMBA • Winter 2008/2009 45

Table of Contents Feed for the Digital Edition of Black MBA - Winter 2008/2009

Black MBA - Winter 2008/2009 Contents Preserving Dr. King’s Legacy: Harry E. Johnson is Six Years and $100 million into his First Fundraising Effort Online: www.nbmbaa.org and www.blackmbaonline.com Up Front: Inauguration Takes Over D.C. From the President: Connecting With the Basics The First 100 Days – Already in Progress Back to Basics: Finances 101 Is the Middle Class Disappearing? – Your View From Medals to MBA Conference Highlights Market Forces: The Job of Trying to Find a Job in a Tight Market Applying to an MBA Program?: Avoid Making these Five Critical Mistakes How They Did It: Catching up with the Winning Teams from NBMBAA’s 2008 National Case Competition Change It Up: If a New Job is at the Top of your New Year’s Resolutions, it’s Time for Careful Planning and Preparation Bull Market: Now is the Time to Take Advantage of Web 2.0 On the Move: Member News, Promotions and More Backstage at BET: NBMBAA’s Leadership Institute Takes on BET’s Case for Growth Toronto Rising: NBMBAA’s Toronto Chapter is on a Progressive Track, Building Strong Partnerships and Exposure as Membership Climbs NBMBAA® Chapters: Find Your Local Chapter Here Do What You Love: Turning Your Passion into a Successful Business Requires Patience, Planning and Plenty of Hard Work Above and Beyond: Meet the Winners of the 2008 Wells Fargo/NBMBAA Entrepreneurial Excellence Award Decorating by Design: Michelle Rider Leaves Corporate Life for Entrepreneurship Culture Shock: Black Museums Nationwide Appeal for Greater Support from the People whose Heritage they Strive to Preserve Gear Up for 2009: Books to Herald Success in the New Year Advertiser Index: Who’s Who in the Issue

Black MBA - Winter 2008/2009

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