Define the central bank.

(c) (/ point) Describe sensitivity and specificity knowing that the measure of interest is diabetes. (d) (I point) Describe the dilemma you have in balancing the sensitivity of your model versus the specificity of your model.(7 points) You have been asked to develop a clinic-based risk adjustment model. You are currently working on the portion of the model related to diabetic conditions. You are given the following information. Diagnosis Code Average ICD-9-CM Description Cost PMPY 250 A diabetes diagnosis without a fourth digit (i.e., 250 only). $12.000 250.0 Diabetes mellitus without mention of complication $10.000 250.2 Diabetes with hyperosmolarity (hyperglycemia (high blood sugar levels) and dehydration) $30.000 250.3 Diabetes with other coma $20.000 250.4 Diabetes with renal manifestations (kidney disease and $29.000 kidney function impairment) 250.5 Diabetes with ophthalmic manifestations $11.000 250.6 Diabetes with neurological manifestations (nerve damage $18.000 as a result of hyperglycemia) 250.7 Diabetes with peripheral circulatory disorders $19.000 250.8 Diabetes with other specified manifestations $31,000 (a) (3 points) (i) (2 points) Construct a code grouping system using three severity levels for the codes given above. (ii) (/ point) Calculate the average and relative PMPY costs. Show your work. Company ABC is interested in starting a diabetes disease management (DM) program. The focus of the DM program is to manage members with higher claims costs relative to their severity level. You are given the following information for Company ABC: Member Diagnosis Code Annual Diabetes Claims Cost Member 1 250 $18.000 Member 2 250.6 $19,000 Member 3 250.8 $20.000 (b) (2 points) Rank the members to maximize the focus of the DM program. Justify