Partners Healtcare Case Question to Help Solving the Case

In: Business and Management

Submitted By dandouf
Words 605
Pages 3
Portfolio Theory Case (Professor David Moreno)

PARTNERS HEALTHCARE CASE
The goal of this case is to teach to students the relevance of non traditional assets (as real states or commodities) in a well-diversified portfolio. Moreover, students will be able to practice with the most important concepts from portfolio theory as efficient frontier, dominated portfolios, Sharpe ratio, among others. In addition, students are learning how portfolio theory can be useful not only for portfolio managers but for any company or firm with some funds to manage.

To do this case students must work in groups and, at the end, each group must give a printed copy of the answers to all these questions. Moreover, they should prepare a presentation in Power Point or Word answering these questions for their presentation on the classroom.

Short Questions (You should answer these questions very shortly)

1. How do the hospitals obtain their profits? Why do the hospitals use or need the Long-Term Funds? Compute the annual returns obtained by the LTP between 1995 and 2004 and represent them on a graph. In addition, what has the average return been during that time period? 2. According to the text the physician organizations or hospitals can invest their financial resources in several centrally-managed pools. What are these pools? How are they?

1

Portfolio Theory Case (Professor David Moreno)

3. The problem presented in the case is a typical problem of portfolio theory. Is it a security selection problem or an asset allocation problem? Explain the differences among them. 4. During the last years the Parthners Investment Comitte have introduced a new asset class, REITs and Commodity Index. Explain these non traditional assets and if in your own opinion they should be interesting or not.

Long Questions (in this case you will be considered a portfolio manager trying to explain or to answer to…...

Similar Documents

Case Study Solving

...Case Study Method in Management Management education is mainly aimed at developing managerial skills in students. Amongst the various methods adopted in teaching management and management functions, the case study method developed in 1910 in U.S.A. and is now being propagated during the last decade or so, providing opportunities to both the teacher and the taught to promote managerial I understanding and competence, since it helps in contemplation and discussion of an actual situation. It is a wrong notion that the case studies are confined to management students. Cases may pertain lo any discipline, where skills for solving complex unstructured problems or preparing plans are required. The origin of case study methods itself can be traced to Harward Lawyers. Cases may describe problems facing individuals, groups, institutions or even Nations. Through a case study one learns a broad range of skills and has many alternatives. Case studies encourage the practice and attainment of analytical and communicative skills. Case studies allow a different kind of learning. It is close to the learn by doing' approach. Cases are intended to stimulate the reality of the manager's job. The material in the case provides data for analysis and decision-making. Cases require the student to make decisions about the situations presented and to defend those decisions. In real decision-making the student will have lo persuade superiors that his analysis and solutions are the best and hence......

Words: 3549 - Pages: 15

Case Questions

... CASE 01 - MYSTIC MONK COFFEE 1. Has Father Daniel Mary established a future direction for the Carmelite Monks of Wyoming? What is his vision for the monastery? What is his vision for Mystic Monk Coffee? What is the mission of the Carmelite Monks of Wyoming? 2. Does it appear that Father Daniel Mary has set definite objectives and performance targets for achieving his vision? 3. What is Father Prior’s strategy for achieving his vision? What competitive advantage might Mystic Monk Coffee’s strategy produce? 4. Is Mystic Monk Coffee’s strategy a money-maker? What is MMC’s business model? What is your assessment of Mystic Monk Coffee’s customer value proposition? its profit formula? its resources that enable it to create and deliver value to customers? 5. Does the strategy qualify as a winning strategy? Why or why not? 6. What recommendations would you make to Father Daniel Mary in terms of crafting and executing strategy for the monastery’s coffee operations? Are changed needed in its long-term direction? its objectives? its strategy? its approach to strategy execution? Explain. CASE 02 - COMPETITION AMONG THE NORTH AMERICAN WAREHOUSE CLUBS: COSTCO WHOLESALE VERSUS SAM’S CLUB VERSUS BJ’S WHOLESALE 1. What is competition like in the North American wholesale club industry? Which of the five competitive forces is strongest and why? Use the information in Figures 3.3, 3.4, 3.5, 3.6, and 3.7 (and the related chapter discussions on pp. 41-53) to do a complete five-forces......

Words: 1695 - Pages: 7

Case Question

...This is an outline of the three-step writing process to apply to cases. Answer all questions directly on this form. Then add a page break, and write your message in response to the case on the following page. For the three-step process questions, you may use short phrases and sentences for your answers. Student name? Javier Pita Case number and short name for case? Case number 12. Short name: Email privacy policy. I. Plan A. Analyze the Situation 1. What is your general purpose? The general purpose is to communicate the new email privacy policy of the Los Angeles Times. 2. What is your specific purpose? The specific purpose is to inform the bureau managers about the new email privacy policy and the penalties for the offenses. 3. Exactly what do you want your audience to think, feel or believe after receiving your message? I want my audience to feel and believe the importance of applying the new privacy policy about emails and to make sure that the penalties are implemented. 4. Who is your primary audience? My primary audience is the bureau managers. I need to inform them about the new policies and to let them know that there will be a more detailed memo in the future that will explain with more details the new policies. 5. What is their background? The primary audience has a very good background in the subject. They......

Words: 1215 - Pages: 5

Partners Healthcare Case Analysis

...Partners Healthcare Case Analysis  FIN 4504: Professor Yue Tang    Group Members  Brittany Cyb  Jessica Berman  Mary Austin    1. a) Efficient Portfolios (see excel snapshot below)          Acquired the Portfolio Variance Using Solver Below:      Applied this Solver from 5% to 17%,  changing the parameters accordingly from  B through N as the expected return  (constraint) changed.        1. b)  Global Minimum Variance Portfolio (see excel snapshot below)                Acquired Global Minimum Variance Portfolio Using Solver below:    Applied similar parameters as  # 1a but changed the cells and  deleted the minimum  expected return constraint        1.c) The Tangent Portfolio (see excel snapshot below)          Acquired the Tangent Portfolio using Solver Below:    Changed parameter from min to  max and applied a similar  constraint as #1b but chose the  Sharpe Ratio as the target          2. What amount should hospital invest in each asset? What is the standard  deviation?    Step 1) Inserted expected return of both STP and optimal expected return of  LTP into an equation to equal the desired 8% return to find the  weights.      .08 = w(.032) + (1‐w)(.1177)      w = .44    Step 2) Solve for weights of STP and LTP assets      W (Total STP) = .44    W (Total LTP) = .56           W (U.S. Equity) = .56 (.41) = .23    W (Foreign Equity) = .56 (.47) = .26    W (Bonds) = .56 (.12) = .07   ......

Words: 488 - Pages: 2

Course Problem Solving Case

...Course Problem Solving Case (Hank Kolb, p. 160 – 161) Following are the instructions you are to use in analyzing the Hank Kolb case. During Class 5, you and your class members analyzed the direct causes of the quality problems on the Greasex line. You used the fishbone diagram to display your analysis. In the next paragraph you are now asked to analyze this case from a larger perspective. You are Hank Kolb and you realize that the quality problems with the Greasex line is a symptom of a larger quality management issue for the organization. You have formed a problem solving team within the organization to analyze this larger problem and make recommendations on how to improve the quality management system with in the organization. Describe how your team will analyze this problem and make recommendations for improvement. 1. Write a problem statement that identifies the improvement objectives. 2. Describe the data and information collection tools that you will use to analyze this problem. Be specific. For the data you would collect, design the data form(s). You may also identify data that may be within the organization data bases that you would analyze. 3. You will also be given some data to supplement this case (since you cannot actually collect the data) to analyze. You are to show how you would use one or more analysis methods to analyze this data. 4. Establish design criteria that you will use to evaluate alternatives that your team may develop...

Words: 439 - Pages: 2

Partners Healthcare Case Study

...Partners HealthCare System (PHS): Transforming Health Care Services Delivery through Information Management Case Description According to government sources, U.S. expenditures on health care in 2009 reached nearly $2.4 trillion dollars ($2.7 trillion by the end of 2010). Despite this vaunting national level of expenditure on medical treatment, death rates due to preventable errors in the delivery of health services rose to approximately 98,000 deaths in 2009. To address the dual challenges of cost control and quality improvement, some have argued that what is needed is an integrated electronic medical record (EMR) system and associated information technology-enabled processes. While the information systems currently available may meet the needs of the industry, the question remains as to what is required within and by the health care services organization to achieve a satisfactory response to these dual challenges. At the present time, Partners Healthcare System (PHS) maintains a centralized digital records library on over 5 million patients, augmented in real-time by data, textual comments, and artifacts (i.e. x-rays, MRI’s, EKG’s, etc.) as these patients visit doctor offices, receive hospital-based or home care services, and obtained prescription medications and other therapies. Procedures are in place to ensure the data quality and integrity of these patient files. Going forward, any health care professional across the network can access a patient’s complete...

Words: 2178 - Pages: 9

Arundel Partners Case Analysis

...Arundel Partners Case Analysis Executive Summary: A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights for a studio's entire production during a specified period of time or purchase a specified number of major films. Arundel's profitability is dependent upon the price it pays for a portfolio of sequel rights. Our analysis of Arundel's proposal includes a net present value calculation of each movie production company. In order to decide whether Arundel can make money buying movie sequel rights depends on whether the net present value of the production company's movies is higher than the estimated 2M per film required to purchase the rights. Problem Identification: How are the principals of Arundel Partners planning to make money by buying rights to sequels? They would be interested in purchasing the sequel rights for one or more studios¡¦ entire production over an extended period of not less than a year. If a particular film was a hit, and Arundel thought a sequel would be profitable, it would exercise its rights by producing the sequel. Alternatively, they can sell the rights to the highest bidder. Inevitably, the performance of the original films would not justify sequels, and for them the sequel rights would simply......

Words: 277 - Pages: 2

Case Questions

...Spring 2003 Professor Kose John The Super Project Case – Questions and Hints I have digested the data in Exhibit 6 to produce Modified-Exhibit#6, in the Excel Spreadsheet on my website.The management analysis in Exhibit 6 does not deduct depreciation from the project’s taxable income. I have done that in Modified-Exhibit#6. - In Exhibit 6, the first change in Net Working Capital occurs in period 1. I have kept that assumption in Modified-Exhibit#6. It is ok to move all changes in NWC back one period, if you prefer to do so. - The depreciation calculation uses an old formula that is no longer used in practice. I have explained the formula and derived depreciation and book values in Modified-Exhibit#6. Suppose you are responsible for making the final decision about the Super Project, on March 1967, and you have read all the data and the analysis in “The Super Project”. Should you go ahead with the project or not? I will help you out by asking a few specific questions, the type of questions you would have to ask yourself in a real world situations. Specific questions 1) Are the cash flows in Exhibit 6 or Modified-Exhibit#6 correct? Notice that the reason for including the cash flows in Exhibit 6 is explained in detail in the “The Super Project”. In particular, should General Foods include the following or not? Discuss briefly. a) Test market expenses; b) Charges for the use of Jell-O agglomerator capacity; c) Charges for erosion of Jell-O......

Words: 614 - Pages: 3

Partners Healthcare Case Solution

...Partners Healthcare Executive Summary Partners Healthcare is considering the introduction of real assets into the organization’s portfolio. The analysis will demonstrate the effects of having one risky asset and one risk-free asset in a portfolio. Our analysis will also show that the introduction of real assets can decrease the risk of the hospital’s portfolio. Each hospital in the healthcare system can determine the appropriate portfolio mix based on their desired expected level of return and risk they are willing to accept. I. Mixes of STP & LTP Suppose different hospitals within the Partners system chose different mixes of the “risk-free” STP (short term pool) and the baseline LTP (long term pool), whose future expected returns and risks are shown in Exhibit 3. On Exhibit 3, plot the returns and risks of the various potential portfolios that can be formed by allocating funds between the STP and baseline LTP. What shape does a line drawn through these portfolios take? Why? In contrast, what would the risk-return opportunities available to the hospitals be if they could invest only in the STP and US Equities? Exhibit 1a plots the expected returns for the mix of portfolios with the “risk-free” STP and the baseline LTP. A straight line can be drawn through these portfolios as the expected return and standard deviation (i.e. volatility) increases with the greater weight allocation to the LTP. The straight line is observed due to these portfolios being...

Words: 1319 - Pages: 6

Case Questions

...Case #1: Butler Lumber Company Questions 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Butler’s loan request, and, if so, what conditions would you put on the loan? 4. Has Butler Lumber Company created value for shareholders? Hint: It might help you to analyze the case if you conduct the following analyses: 1. 2. 3. 4. Construct a common-size (percentage) income statement. Construct a common-size (percentage) B/S Using information from 1&2 to find out the operating efficiency Assuming the same operating efficiency in 1990, forecast cash needs for the target growth Case #2: Ocean Carriers Questions Ocean Carriers uses a 9% discount rate. 1. Do you expect daily spot hire rates to increase or decrease next year? 2. What factors drive daily hire rates? 3. How would you characterize the long-term prospects of the capesize dry bulk industry? 4. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First, assume that Ocean Carriers in a U.S. firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong,......

Words: 947 - Pages: 4

Case Questions

...52:620:530 D6 (Summer 2015) Arun Kumaraswamy Case preparation questions KTM – Ready to race (for general discussion in class) 1. Size up KTM (its strategy, resources/capabilities, organization and management) and its environment. How is it performing? 2. What growth options does it have? How does each growth option fit with its environment, strategy/resources/capabilities? How well can KTM deliver on each of these options? 3. What growth options should KTM pursue? Should it pursue organic growth (i.e., through internal development), merge/acquire (if yes, who) or use alliances? Newell Co: Corporate strategy (for general discussion in class) 1. Is Newell’s corporate strategy successful? Does the company add value to the businesses within its portfolio? 2. What are Newell’s distinctive resources and competencies? 3. What challenges does Newell face in the late 1990s? 4. Given this context, does the Calphalon acquisition make sense? Rubbermaid acquisition? Why (or why not)? Antitrust regulation in a global setting: The EU investigation of GE/Honeywell merger (for general discussion in class) 1. What markets are affected by the proposed GE/Honeywell merger? Who are the main competitors in these markets and how are these markets related to each other? 2. What would the combined market share of GE and Honeywell be in each of the markets you identified in Q1? How would these estimates change depending on how broad or narrowly you define these markets? 3.......

Words: 1027 - Pages: 5

Solutions to Arundel Partners Case

...solutions to arundel partners case http://www.justanswer.com/law/0vnrc-solutions-arundel-partners-case.html Executive Summary:  A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights for a studio's entire production during a specified period of time or purchase a specified number of major films. Arundel's profitability is dependent upon the price it pays for a portfolio of sequel rights. Our analysis of Arundel's proposal includes a net present value calculation of each movie production company. In order to decide whether Arundel can make money buying movie sequel rights depends on whether the net present value of the production company's movies is higher than the estimated 2M per film required to purchase the rights.  Problem Identification:  How are the principals of Arundel Partners planning to make money by buying rights to sequels? They would be interested in purchasing the sequel rights for one or more studios¡¦ entire production over an extended period of not less than a year. If a particular film was a hit, and Arundel thought a sequel would be profitable, it would exercise its rights by producing the sequel. Alternatively, they can sell the rights to the highest bidder. Inevitably, the performance of the......

Words: 1450 - Pages: 6

Arundel Partners Case

...Arundel Partners: The Sequel Project 1. Why do the principals of Arundel Partners think they can make profits buying movie sequel rights? They would be interested in purchasing the sequel rights for one or more studios¡¦ entire production over an extended period of not less than a year. If a particular film was a hit, and Arundel thought a sequel would be profitable, it would exercise its rights by producing the sequel. Alternatively, they can sell the rights to the highest bidder. Inevitably, the performance of the original films would not justify sequels, and for them the sequel rights would simply not be exercised. For most movies it becomes quite clear after their first few weeks in theaters whether a sequel would be economical or not, based upon each film's box office performance. 2. Why do they want to buy a portfolio of rights in advance rather than negotiating film-by-film? It is of critical importance to Arundel that a number of films and a price per film is agreed upon before either Arundel or the studio knew which films would generate the option of a sequel. In addition, once production started, the studio would inevitably form an opinion about the movie and the likeliness that a sequel would be possible. This would put Arundel at a disadvantage, because they would then have to negotiate the price for sequel rights on each film produced, while knowing much less than the production studio about the film. 3. Estimate the per-film value of a portfolio of......

Words: 390 - Pages: 2

Case Study: Partners Healthcare Systems

...Case Study: Partners HealthCare Systems Case Study: Partners HealthCare Systems Partners HealthCare is a non-profit, health system located in Boston that created a data based transformation (Davenport, 2013). It integrated a new system that aligned the participating organizations to cohesively run as one and to help shape the future of the organization. The system didn’t stop there as it was responsible for bettering the patient financing experience and the delivery of healthcare information to other organizations (Davenport, 2013). The initial goal of the organization was making patient care more affordable and accountable by providing integrated, evidence based, patient-oriented care. Problem Identified Partners HealthCare, which was created by major contributing hospitals and medical facilities in the Northeast, initially began as a way to focus on the patient needs; however, the company soon found themselves separating from their initial goal. There was more than one problem identified within the realms of the company. There are three main issues that this case study produced. The first outlying issue is called Alert/Warning Fatigue (Davenport, 2013). This derives from alerts that were placed in the system to warn doctors of notices that could be anything from mixing prescriptions to simple notifications that most doctors already knew or was not in their field of study. A second issue that requires resolution to create a successful working system is the......

Words: 1410 - Pages: 6

Cases Questions

...2006 CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions. Table of Contents Page Case: Name and Number, Bruner 5e Note Number I. C12- Best Practices—WACC No Questions II. C2- Bill Miller & Value Trust 2 III. C5- Financial Detective, 2005 Contained in Case IV. C7- Body Shop Intl* Contained in Case, but see page 3 V. C6- Krispy Kreme Doughnuts, Inc. 4 VI. C17- The Investment Detective* Contained in Case VII. C28- Intro. to Debt Policy & Value* No Questions, but review M & M Theory on debt and value of the firm. VIII. HBS Case- “Leveraged Betas and the Cost of Equity No Questions IX. C16- The Boeing 7E 7* 5 X. C26- Jet Blue Airways, IPO Valuation* 6 XI.a C35- Merton Electronics 7 XI.b C36- Carefour S. A.* 8 XI.c C44- Palamon Capital Partners* 9 XII. GM Dividend Policy Negotiation (Information to be provided by Dr. Kiss) * Note: Excel Spreadsheets containing some of the exhibits from the case are available for this case at www.mhhe.com/bruner5e FIN 620, CASE QUESTIONS DR. KISS Please allow these questions to serve as a guide when you prepare your case write-up in accordance with the syllabus or other instructions Case 2- Bill Miller & Value Trust Suggested Questions for Your Preparation of the Case. ...

Words: 1437 - Pages: 6

The Soultaker | Wisin Feat. Jennifer Lopez & Ricky Martin - Adrenalina. | Más detalles