Healthy Sleep Supplies And Equipment, LLC: A Case Study

Abstract

Aaron Pieper was hired about a year ago to run his brother’s small medical equipment supply company.  Aaron, an MBA with a sketchy employment history, is confronted with a substantial change in Blue Cross Blue Shield (BCBS) insurance reimbursement terms, and he isn’t quite sure how to analyze the impact on the business’s operations and finances.  Moreover, he is not even certain the business should continue to accept BCBS patients.  The reader discovers the underlying management complexities of Aaron’s decision through a lively staff meeting and is asked to counsel Aaron with regard to determining the financial consequences of the possible courses of action.  The richness of this case is attributed to a practical working capital decision and its impact on operating cash flow.  This case is intended for undergraduate courses in corporate finance.