In 1999, Richard Townsend, MD was re-appointed as Executive Director (CEO) of Liberty Medical Foundation (LMF). Townsend responsible for both the Liberty Medical Group (LMG), a large, 3,000 physicians multidisciplinary medical teams that have assisted two million subscribers, and the plan Liberty Medical (LMP), a non-profit insurance company. It was his first official meeting with the Director General of the Board of Directors, and critical. In it, he would formally present to the Council its strategy LMF. Townsend believes that freedom faced sharp strategic choice: either drastically reduced its rate by reducing the cost to become a leader in value again, or to differentiate themselves by creating a reputation for quality and service. The first option would require them to recover the cost advantage by reducing the cost structure by 10% to 15%. This measure would almost certainly entail layoffs and pay cuts. The second option would be to raise rates, and rely on the services, access and quality strategy. "Hide
by David Caldwell, Robert Pearl, Charles A. O'Reilly Source: Stanford Graduate School of Business 20 pages. Publication Date: July 28, 2003. Prod. #: OB43A-PDF-ENG
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