Finance – Ct6
Risk Aversion
conduct some additional research on risk aversion within healthcare. In this research-based paper, analyze what the literature presents as an acceptable level of risk within the healthcare organization.
- Application of the Capital Asset Pricing Model.
- Analysis of necessary levels of risk needed in order to maintain a level of profitability.
- Analysis of necessary levels of risk vs. excessive risk.
- Analysis of cost/benefit levels of risk to patients vs. production of large returns to the organization.
Your final submission will be 2-3 pages in length excluding the cover and reference pages. Be sure to include:
- Analysis of the acceptable level of risk.
- Summary of findings.
Your paper should meet the following structural requirements:
- The paper should be 2-3 pages in length, not including the cover sheet and reference page.
- The paper should be formatted according to APA
- Provide support for your financial statements with in-text citations from a minimum of four scholarly articles.
- Two of these sources may be from the class readings, textbook, or lectures, but two must be external.
Solution Preview
Risks are an integral part of the modern day society. As such, risk-taking is inherent as this drives both innovation and development (Vasvári, 2015). Notably, health care organizations are moving away from the fee-for-service payment approach to one that upholds reimbursement for value and quality (Vasvári, 2015). The damning reality with the new changes is an elevated level of risks for the healthcare organizations. While the healthcare institutions are striving to improve the quality of primary care delivery at affordable costs, revenue and income will be strained. This seismic shift naturally exposes the healthcare organizations to elevated levels of risks (Miller, Kurunmäki & O’Leary, 2008).
(723 words)