Question

A Decision-Making Challenge for Healthcare Risk Management

Two major risks have been identified in a healthcare system. The first one is “Delay in Service”, called Risk A, and the second one is “Leave of Personnel”, called Risk B.

- For Risk A, if the service is completed by two days delay, client will apply $4,000 penalty. The possibility of this type of delay is 40%. If the delay is more than two days and less than four days, which has a probability of 25%, then $8,000 penalty will be applied. For more than four days with a chance of 10%, penalty is $20,000.

- For Risk B, two categories for human resource leave are possible: Leave of a doctor with 30% possibility and leave of a nurse with 70% possibility. In the doctor category, the probability that a doctor who leaves the healthcare team is superintended is 25%, and in that situation the compensation will be $10,000. For any other doctor this amount is $4,000. Similarly, in nurse category, expert nurse leaves with 40% probability and entry-level nurse leaves with 60% probability. Compensation for expert and entry-level nurses are $2000 and $1000, respectively.

Compare Risk A and Risk B using decision-tree technique .

Answer 1

Solution::-