Question $35(1$ point$)$

A religious leader on your governing board suggests that low income is an important cause of disease and preventable use of HCO services. She proposes that the HCO lead the community by raising pay levels for its lowest earners by about $50$ percent, and require its contractors to do the same. "Getting everybody in our community a living wage is a first step to health," she says. Senior leadership is asked to report on the proposal.

"Slow walk" the response. Many businesses in town will resent the action,

and there's a lot to do implementing the population health mission.

Prepare a report documenting the impact on the HCO. The COO's initial estimate is that, if revenue remains constant, the proposal would seriously erode funds for new and replacement capital. Present the findings without recommendation.

Prepare a report documenting the impact on the HCO. Note that, if implemented community$-$wide, increased labor costs would generate higher insurance premiums and lower total employment.