Nursing Home Beds: Fundamental Uncertainty and Values Case Study

The present case research presents a dilemma that two nursing properties working inside the similar neighborhood face on account of an extreme variety of underutilized beds in each amenities, which is related to excessive fastened prices. In this regard, it’s acknowledged that if the admission charges stay low, the nursing properties can scale back the variety of operated beds by dismissing a certain quantity of staff. On the opposite hand, if the admission charges enhance, the share of fastened prices would diminish as general income would develop. However, for the reason that decision-makers in each amenities can not predict the long run, their technique alternative is just not fairly easy. Moreover, being direct rivals, managers of every group ought to contemplate the actions of their opponents. Therefore, the reviewed case research presents a market uncertainty situation that may be analyzed by counting on sport concept (Chiffi and Pietarinen, 2017). For this purpose, the reply as to if every nursing dwelling will scale back the variety of operational beds is supplied by the lenses of the framework talked about above.

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Priyan and Mala (2020) keep that the end result matrix is usually a good visible instrument for representing the attainable penalties that observe varied strategic selections of two teams of individuals. In this respect, Table 1 illustrates potential outcomes of selections to scale back or not scale back the variety of used beds assuming that the demand for nursing properties wouldn’t develop. Contrary, Table 2 represents the attainable outcomes of comparable selections however underneath the situation that the admission charges would develop.

Table 2
Decisions’ outcomes assuming that demand elevated
Nursing Home 1
Nursing Home 2 Reduce Not scale back
Reduce 1;1 2;-1
Not Reduce -1;2 1;1
Note. The consequence is taken into account extra favorable because the quantity grows or much less favorable because it reduces from the pre-decision situation, which equals 0. The first quantity represents the end result for nursing dwelling 1, whereas the second quantity – for nursing dwelling 2.
Table 1
Decisions’ outcomes underneath no development in demand assumption
Nursing Home 1
Nursing Home 2 Reduce Not scale back
Reduce 1;1 -1;2
Not Reduce 2;-1 0;0
Note. The consequence is taken into account extra favorable because the quantity grows or much less favorable because it reduces from the pre-decision situation, which equals 0. The first quantity represents the end result for nursing dwelling 1, whereas the second quantity – for nursing dwelling 2.

As it may be seen from the leads to Table 1 and Table 2, the end result that might equally profit each events is a simultaneous discount within the variety of beds used underneath service demand uncertainty. If it’s assumed that the admission will keep the identical, the choice to dismiss a certain quantity of workers will scale back fastened prices in each amenities. Similarly, throughout a rise in demand, the mattress discount technique will scale back prices in two organizations. Contrary, if each amenities resolve to not scale back mattress utilization, they’d have the ability to scale back the share of worker bills within the case of an admissions surge. However, if there are not any modifications in service consumption, the entities would proceed struggling the identical prices as earlier than.

If the organizations resolve to use completely different methods, the outcomes would rely largely on the speed of admissions. For occasion, suppose that nursing dwelling 1 determined to scale back the mattress utilization whereas nursing dwelling two didn’t. Then, if the demand grows, the previous would considerably lose to its competitor. That is defined by the truth that even when each organizations may considerably scale back their prices, the second facility benefited extra as it could entice extra prospects.

In conclusion, it may be argued that each nursing properties ought to search to collaborate on the difficulty of fastened prices on account of in depth mattress utilization as it’s discovered that solely this technique may also help amenities to extend revenue and efficiently safe all of the potential dangers. However, the prisoner’s dilemma exhibits that counterparts would fairly pursue private well-being than the frequent curiosity (Embrey et al., 2018). Therefore, it may be argued that though every nursing facility can scale back mattress utilization independently, it’s unlikely that each organizations would do this concurrently.

References

Chiffi, D., & Pietarinen, A. V. (2017). Fundamental uncertainty and values. Philosophia, 45(3), 1027-1037.

Embrey, M., Fréchette, G. R., & Yuksel, S. (2018). Cooperation within the finitely repeated prisoner’s dilemma. The Quarterly Journal of Economics, 133(1), 509-551.

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Priyan, S., & Mala, P. (2020). Optimal stock system for pharmaceutical merchandise incorporating high quality degradation with expiration date: a sport concept strategy. Operations Research for Health Care, 24, 1-13.

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