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?
3. 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?
4. 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?
