What was Cavalier’s Hospital Strategic Plan to compete with the rival hospital?

1. What is the strategic plan for Knight Hospital to compete with competing hospitals?
2. What is Harrison’s rationale for seeking capitalization payments? Do you see any perverse incentives
for some patients to use a per capita reimbursement structure while others use a fee-for-service model?
3. Define each ratio listed in Appendix 6, including:
a. What does this ratio tell you about the financial health of your organization? B. If the performance of the metric is trending over time (years in this case), then
is a favorable direction.
4. Is Cavalier Hospital in financial health? Use one of the information provided in Attachments 4, 5, 6 and 7 to
make an argument for your decision.
5. How has Cavalier’s financial situation changed since the Rotunda Cardiovascular Center opened?
healthier (better) or sicker (worse)? Give an example of your decision.
Knight Hospital

What is the strategic plan for Knight Hospital to compete with competing hospitals?

  1. Success comes at a price. It requires commitment and solidarity among stakeholders in an organization. For that matter, Knight Hospital faced a decline in the number of patients with cardiovascular disease due to intense competition from rival hospitals. In response to increasing competition, the Board of Directors decided to establish the Rotunda Cardiovascular Center. Remarkably, the Rotunda Cardiovascular Center brings together all physicians involved in treating heart disease under one roof for comprehensive care.

What is Harrison’s rationale for requesting a capitalization payment? Do you see any false incentive to put some patients in the reimbursement structure and others in the fee-for-service model?

  1. Service quality is an essential element in an organization. Harrison ensures that Cavalier Hospital focuses on maintaining high-quality service to customers rather than financial gain. Harrison prefers pay in capitals because the system dictates that the same patient with similar conditions pay the same price for services, rather than a “fee-for-service” payment method. In addition, the application of this method provides freedom for the hospital to provide services. Hospitals can use state-of-the-art technology without having to get approval from insurance companies every time because it doesn’t cost insurance companies anything. Therefore, when the most modern technology is used, the patient does not have to pay extra…


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