You Decide Week 6

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Business Problem Name Institution Affiliation Abstract In the scenario, the CFO is encountered with a problem that requires an appropriate decision that will help the thriving of the hospital. The dilemmatic decision-making is accompanied with some consequences that may result in the losses to the firm. The dilemma is as a result of the signing of the contract proposal made by the MegaPlan Insurance Company, and this will result in losses due to the huge discount offered to the company. And also, on the contrary, the loosing of the patients and nurses due to the failure to join the Preferred Provider Network that is linked with the Intertech. The best way in which the CFO can overcome this dilemma is by assuming the proposal made by the MegaPlan and also writing a contract proposal to the company with some of their requirement that should be met by the company so that they can bargain on a plain ground. The writing of the proposal to the company will give the patients hope and the willingness of the hospital to join the MegaPlan. The problem at hand is the acquisition of the contract with the MegaPlan and some of the side effects it will bring to the hospital once it is signed. Once the contract is signed, the hospital will have to run at a loss since the discount that the MegaPlan will demand from the hospital would have exceeded the 20% which is the limit for discount to e offered by the hospital. Therefore, the signing of the contract to this insurance company will bring no good to the hospital, and it will also be difficult to run some of the activities in the hospital such as the purchase of some of the basic products since the expenses shall exceed the

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