The Case for Open Heart Surgery at Cabarrus Memorial Hospital Research Paper

The Case for Open Heart Surgery at Cabarrus Memorial Hospital - Research Paper Example Discuss ways the program does or does not comply with the hospital’s mission First, the availability of the open heart surgery program should be reviewed. In fact, it is available in 11 counties in North Carolina, however, it is not offered in the primary operational area, the CMH involves. Actually, this can be regarded as a key decisive factor for extending the range of procedures. Considering the hospital’s mission, it should be emphasized that the hospital has the sufficient base for heart surgery and therapy; therefore, the open heart program will lower the risks for the patients, who need angioplastry, and other invasive therapies. Considering the planned expansion of the hospital, the open heart surgery program is required for attracting experienced heart surgeons as well, while the lack of experts may be regarded as a stop factor. Considering the necessity to review the mission, the CMH will have to consider several additional aspects for launching the program. Therefore, the program will need some amendments, such as including output measurements, integrating the emergency practices into the new program, as well as differentiate responsibilities of the entire team. (Courtney, 2008) These amendments require the in-depth restructuring of the strategic approaches applied, as well as improving the implementation control schemes. Therefore, the mission of the hospital will have to be oriented at several aspects: 1. Patients’ satisfaction 2. Qualification improvement of the personnel (including training courses and experience exchanges) 3. Resolving legislative issues (medical insurance, new program formalities, etc.) Analyze whether or not CMH has sufficient infrastructure and financial resources / leverage necessary to add the program As it is stated in the case study description, the hospital has sufficie nt financial resources for rearranging the space, purchasing equipment, and employing additional personnel. (Swayne, Duncan and Ginter, 2008) Nevertheless, there is a lack of experienced personal expected. Therefore, as it is emphasized in the discussion, the hospital has only one invasive cardiologist, while the other experts are either interns, or non-invasive cardiologists. Therefore, the hospital will have to resolve the problem of finding the experienced personnel, for launching the open heart surgery program. Nevertheless, this could be regarded as the only serious threat for implementing it. On the other hand, the CMH will have to redesign the overall control management in order to launch the open heart surgery program. In accordance with the research by Scharer (2005), such a redesign may be performed by considering the engineering approach to measure and calculate the possible workload. These measures are required for adapting the HR strategy to the new working approaches, associated with launching the new program. However, such a shift will also require applying organizational development approach concentrated on the proper team building principles, since proper recruiting, and necessity for coordinated team work is essential for health care strategic management. Describe the competitive situation among other area hospitals that could impact the decision On the one hand, the CMH has an opportunity to become the first clinic in the county, offering the open heart surgery program. On the other hand, in accordance with the case description, the lack of the experienced personnel is essential, and some experts have been already gained by other clinics of the State. (Swayne, Duncan

Arbitrage Pricing Theory Essay Example | Topics and Well Written Essays - 3500 words

Arbitrage Pricing Theory - Essay Example To be able to show the problems, I make use of the study done by Lehman and Modest (1985), which come up into three conclusions. The analysis of Lehman and Modest was able to show that one of the problems in determining the factor for asset pricing is the proper or the correct use of procedure. Lehman and Modest opposed Fama-Macbeth in using the maximum likelihood analysis in determining the factors. Another study included in this paper is the one done by Enrico Altay (2003) using the Germany and Turkish stock exchange. In his study he uses the Fama-Macbeth maximum likelihood analysis. This causes the difference in the result. Therefore, in analysing the stock exchange one should be aware of the models and theory being used. The arbitrage pricing theory may encounter several problems especially in analyzing the factors. The macroeconomic factors may affect the outcome in pricing the asset. The analysis in which the best portfolio perform best remains. The arguments are presented in the later part of the paper. Arbitrage Pricing Theory (APT), is a general theory of asset pricing. It holds the expected return of a financial asset that can be modelled as a linear function of various macro-economic factors or theoretical market indices, where sensitivity to changes in each factor is represented by a factor specific beta coefficient. This theory was initiated by the economist Stephen Ross in 1976. The The Arbitrage Pricing Theory establishes an equilibrium pricing relation between each asset's expected return and all others. In analyzing the theory, we must first discuss the covariance matrix and the portfolio risk. There are several method in estimating covariance matrix one can be by using the simple volatility estimator (Garman-Klass, 1980) or with GARCH estimators (Engle,1982; Bollerslev, 1986). Another method is that, assuming the drivers of volatility is known the historical data can be estimated if the variables are picking and the relation between each driver and each stock are identified. Portfolio return is the weighted average of the individual asset returns, using the portfolio holdings as weighs. The portfolio risk is the weighted sum of the individual asset variances and covariances with all other assets, using as weights the squared portfolio weights. Portfolio risk is its weights the squared portfolio weights. The original return units can be used to compute variance. The portfolio risk is usually reported as the square root of the variance, the volatility of portfolio returns. To compute for the portfolio risk we must collect the return variances and covariances in a table - the "covariance matrix". We must identify the portfolio holdings weights and apply the portfolio risk formula - a function dubbed a quadratic form by mathematics. The portfolio analysis is important in correlating with the common factors in showing the validity of the APT. The APT based on Ross (1976) takes the view that there is no single way to measure systematic risk. The risks arise from the unanticipated changes in the following fundamental economic variables: 1. Investor confidence 2. Interest rate 3. Inflation 4. Real Business Activity 5. A market index Each stock and portfolio has exposures or betas with respect to each of these systematic risks. Risk Exposure Profile is the pattern of economic betas for a stock or portfolio. The profile indicated how a stock or portfo