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Why did Cavalier Hospital decide to build a new cardiovascular center? What is Cavalier’s financial position in 2010? Is Cavalier Hospital financially healthy or Sick?

Cavalier Hospital questions:

  1. Why did Cavalier Hospital decide to build a new cardiovascular center?
  2. What is Cavalier’s financial position in 2010? Is Cavalier Hospital financially healthy or

Sick?

  1. What is Harrison’s rationale for seeking capitated payments? Do you foresee any perverse incentives by having some of the patients on a capitation reimbursement structure and others on a fee-for-service model? On which operating goals has Harrison succeeded or failed? How have the new insurance contracts and the new center changed the hospital’s operating statistics?
  2. Should Harrison advocate an 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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