Dispatch Base Test

🔥 Section 1: Channel Partner Selection (10 questions)

Key Concepts:

1. Why DispatchHealth Uses Channel Partners

   • DispatchHealth does not sell directly to patients—they work through insurance companies and healthcare providers who pay for their services.

   • This allows more patients to access their services, especially Medicare and Medicaid populations.

2. Evaluating Channel Partners

   • You must choose two out of six potential partners based on four criteria:
     ✅ Target Market Fit – Does this partner serve the right patient demographics?
     ✅ Long-Term Growth Potential – Is this partner expanding or stagnating?
     ✅ Financial Attractiveness – How profitable will this partnership be?
     ✅ Aligned Interests – Does this partner share DispatchHealth’s mission?

3. Trade-Offs in Partner Selection

   • Example trade-off: Optum has the biggest reach, but its size might mean DispatchHealth has less negotiating power.

   • Example trade-off: WellMed perfectly aligns with DispatchHealth’s target market, but it’s smaller and more regionally limited.

Example Question:

🔹 Answer: C) WellMed (WellMed focuses on senior care and chronic disease management, which aligns with DispatchHealth’s target market).

🔥 Section 2: Social Enterprises & Business Models (6 questions)

Key Concepts:

1. What Is a Social Enterprise?

   • A business that uses for-profit strategies to achieve nonprofit-like social goals.

   • DispatchHealth’s social mission: Improve access to healthcare at home for vulnerable populations while still making a profit.

2. How Is a Social Enterprise Different from Other Models?

   • For-Profit Business – Only focuses on revenue & profits.

   • Nonprofit – Solely mission-driven, relies on donations or grants.

   • Social Enterprise (Hybrid) – Balances profit + impact.

3. Who Is DispatchHealth’s Real Customer?

   • Patients = Beneficiaries (receive care, but don’t pay).

   • Insurance Companies & Government = Customers (pay for the services).

Example Question:

🔹 Answer: C) It uses a for-profit business model while increasing healthcare access for underserved populations.

🔥 Section 3: Contribution Margin & Financial Impact (4 questions)

Key Concepts:

1. Contribution Margin Formula:

   • CM ($) = Revenue – Variable Costs

   • CM (%) = (CM $ / Revenue) × 100

2. Why Contribution Margin Matters

   • Higher CM means higher profitability per patient visit.

   • Used to compare which channel partners are more financially attractive.

3. How Different Payers Affect CM

   • Medicaid CM = 20% (low margin)

   • Medicare CM = 46.67% (moderate margin)

   • Private Insurance CM = 75% (high margin)

Example Question:

🔹 Answer: D) 75%
CM ($) = $3,200 - $800 = $2,400
CM (%) = ($2,400 / $3,200) × 100 = 75%

🔥 Section 4: Financial Statements & Cash Flow (16 questions)

Key Concepts:

1. Understanding the 3 Key Financial Statements

   • Income Statement – Measures revenue & expenses to find profit.

   • Balance Sheet – Shows a company’s assets, liabilities, and equity at a single point in time.

   • Statement of Cash Flows – Tracks cash movements from operations, investing, and financing.

2. Cash Burn Rate & Financing Needs

   • Cash Burn Rate = Net Cash Outflow per Month

   • Runway = Cash on Hand ÷ Monthly Burn Rate

   • Total Financing Needed = Net Cash Outflow – Beginning Cash + Target End Cash

Example Question:

🔹 Answer: C) $400,000
Total Cash Needed = (50,000 × 12) - 300,000 + 100,000 = 400,000

🔥 Section 5: Business Communication & Conflict Management (8 questions)

Key Concepts:

1. Handling Conflict in Teams

   • Constructive Conflict – Encourages open discussion, debate, and better decisions.

   • Destructive Conflict – Leads to personal attacks, disengagement, and poor performance.

   • Psychological Safety – Creates an environment where all members feel comfortable speaking up.

2. Email & Report Writing Best Practices

   • Persuasive Emails & Reports should:
     ✅ Have a clear recommendation
     ✅ Use concise, structured arguments
     ✅ Provide data-driven reasoning

Example Question:

🔹 Answer: C) Encourage open discussion and ask them to explain their concerns.

🔥 Final Study Tips

✅ Prioritize Financial Calculations – Contribution margin, cash burn, and financing needs will make up 20%+ of the test.
✅ Understand Channel Partner Selection – You must justify which partners to choose & why.
✅ Review Social Enterprise Concepts – Know how DispatchHealth balances profit and impact.
✅ Practice Business Communication Skills – Know how to write a persuasive recommendation.

💪 Next Steps:

1. Which section do you need the most help with?

2. Want me to generate a full-length practice quiz to test your understanding?

Let’s make sure you crush this exam! 🚀

You said:

can you turn these into flashcards or something like that for studying

ChatGPT said:

Great idea! Here are digital flashcards to help you study efficiently. Each card has a question on one side and the answer on the back so you can quiz yourself.

🔥 DispatchHealth Exam Flashcards 🔥

🟢 Section 1: Channel Partner Selection

📝 Question:
Why does DispatchHealth use channel partners instead of selling directly to patients?
💡 Answer:
DispatchHealth’s customers are insurance companies, not patients. Partnering with insurers allows more patients to access care without high out-of-pocket costs.

📝 Question:
What are the four evaluation criteria for selecting a channel partner?
💡 Answer:

1. Target Market Fit – Does the partner serve DispatchHealth’s ideal patient base?

2. Long-Term Growth Potential – Will the partnership expand in the future?

3. Financial Attractiveness – How profitable is the partnership?

4. Aligned Interests – Does the partner support DispatchHealth’s mission?

📝 Question:
Which partner has the highest number of Medicare members, making it a strong fit for DispatchHealth’s typical patient base?
💡 Answer:
Humana (15.5M Medicare members) – a great match for DispatchHealth’s senior-focused care.

🟢 Section 2: Social Enterprises & Business Models

📝 Question:
What is a social enterprise?
💡 Answer:
A for-profit company that uses business strategies to achieve a social goal—balancing profit + impact.

📝 Question:
Who is DispatchHealth’s real customer?
💡 Answer:
Insurance companies and government programs (Medicare, Medicaid).
Patients = Beneficiaries, not paying customers.

📝 Question:
How is a social enterprise different from a nonprofit?
💡 Answer:
A nonprofit relies on donations, while a social enterprise generates revenue to sustain its impact.

🟢 Section 3: Contribution Margin & Financial Impact

📝 Question:
What is the formula for contribution margin ($ and %)?
💡 Answer:
CM ($) = Revenue – Variable Costs
CM (%) = (CM $ / Revenue) × 100

📝 Question:
DispatchHealth receives $3,200 per visit from private insurance. Variable costs per visit are $800. What is the contribution margin percentage?
💡 Answer:
CM ($) = $3,200 - $800 = $2,400
CM (%) = ($2,400 / $3,200) × 100 = 75%

📝 Question:
Which type of insurance gives DispatchHealth the highest contribution margin?
💡 Answer:
Private insurance (75% CM) → More profitable than Medicare (46.67%) or Medicaid (20%).

🟢 Section 4: Financial Statements & Cash Flow

📝 Question:
What are the three main financial statements and what do they show?
💡 Answer:

1. Income Statement → Revenue & expenses over a period (profitability).

2. Balance Sheet → Assets, liabilities, and equity at a single point in time.

3. Statement of Cash Flows → How cash moves in & out of the business.

📝 Question:
What is cash burn rate, and how is it calculated?
💡 Answer:
Cash Burn Rate = Monthly Net Cash Outflow
Used to estimate how long a company can operate before running out of cash.

📝 Question:
DispatchHealth starts with $300,000 in cash, burns $50,000 per month, and wants $100,000 left at year-end.
How much additional financing is needed?
💡 Answer:
Total Cash Needed = (50,000 × 12) - 300,000 + 100,000 = 400,000
Answer: $400,000 needed.

🟢 Section 5: Business Communication & Conflict Management

📝 Question:
What are two key elements of handling conflict in teams?
💡 Answer:

1. Challenging Each Other → Question ideas, avoid groupthink.

2. Psychological Safety → Respectful debate, open communication.

📝 Question:
A teammate disagrees with your channel partner selection and refuses to contribute.
What’s the best response?
💡 Answer:
Encourage open discussion and ask them to explain their concerns.

📝 Question:
What makes a strong business presentation slide?
💡 Answer:

• Clear, concise title

• Minimal text (use visuals!)

• 3-second billboard rule (audience should grasp the message quickly)

🔥 How to Use These Flashcards

✅ Test yourself: Read the question, then try to answer before flipping the card.
✅ Mix them up: Focus on weaker areas (financial concepts, vocabulary) to improve your understanding and retention.