Superior Health Systems Harvard Case Solution & Analysis

Superior Health Systems Case Study Solution

Table 2 shows that the project would have a positive NPV and a high rate of Return, which implies that the project would be feasible. But, as the company is a non-profit organization, therefore the qualitative benefits of the project should also be considered to find actual value of project. The qualitative benefits of the project are given below:

• The project would bring 300 complex cases that are being referred to other cities at the time.
• It would enable the company to avoid market share losses.

Project-3: Partner with a Major Supplier Who Will Guarantee Price, Delivery, and Product Quality

The feasibility of the project 3 could be analyzed by calculating NPV and IRR along with considering the qualitative benefits of the project. The NPV calculation is given in the Table 3 below.

Table-3: Projected NPV of Project 3

Table 3 shows that the project would have a positive NPV and a high rate of Return, which implies that the project would be feasible. The project has quantitative benefits in terms of cost saving that are considered in above calculations. It does not show any considerable qualitative benefit.

Project-4: Develop a cost-reduction program

The feasibility of the project 4 could be analyzed by calculating NPV and IRR along with considering the qualitative benefits of the project. The NPV calculation is given in the Table 4 below.

Table-4: Projected NPV of Project 4

Table 4 shows that the project would have a positive NPV and a high rate of Return, which implies that the project would be feasible. But, as the company is a non-profit organization, therefore the qualitative benefits of the project should also be considered to find actual value of project. The qualitative benefits of the project are given below:

• The project would provide patient focused care.
• It would lead to minimization of involuntary terminations.

Project-5: Spend $3,000,000 to expand primary care physician membership in Corinth Health Systems, SHS’s PHO

The feasibility of project 5 could be analyzed by calculating NPV and IRR along with considering the qualitative benefits of the project. The NPV calculation is given in the Table 5 below.

Table-5: Projected NPV of Project 5

Table 5 shows that the project would have a negative NPV, which implies that the project would be not feasible. But, as the company is a non-profit organization, therefore the qualitative benefits of the project should be considered also. The qualitative benefits of the project are given below:

• The project would enable the company to establish a fund to start young primary care doctors in practice in selected shortage areas around High point County.

Recommendations

With the deep quantitative and qualitative analysis of the above project opportunities, the company is recommended not to consider project 1 and 5 as the projects have a negative NPV, which could lead to increase in the operational losses of the company. However, these projects could be considered after getting profitable returns. It should consider project 2 as its priority as the project has numerous qualitative benefits stated above and a highest rate of return. It could then also consider project 3 and 4 to achieve its objective of considering education program in high point countries.(Brigham, 2016).........

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