Cavalier Hospital Case study
Answer the following Questions:
- Is Cavalier Hospital financially healthy or sick?
- What are your main concerns?
- What is Harrison’s rationale for seeking capitated payments?
- Do you foresee any perverse incentives by having some patients on a capitation reimbursement and others on a fee-for-service model?
- On which operating goals has Harrison succeed or failed?
- Have the new insurance contracts and the new center changed the hospital’s operating statistics?
- How has Cavalier Hospital’s position changed financially since the opening of the Rotunda Cardiovascular Center?
- Is it now healthy or sick?
- Should Harrison advocate for the expansion of the Rotunda model across all specialties in the hospital?
- If so, what financial trends should he seek to continue or reverse in implementing the new model?
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