Review attached documents about Cavalier hospital and answer the following questions:
-Is Cavalier hospital financially healthy or sick? why?
-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 succeeded or failed?
-Have the new insurance contracts and the new center changed the hospital’s operating
-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?