Dr. David Paul is a medical doctor at a small private hospital in XYZ city. He sits on the Board of Directors of the Hospital. He is also head of the Neurology Department. The hospital is undercapitalized, and they are having a board meeting to approve the budget. He requires a new MRI machine. However, the cost of the machine will impact the budget and ultimate profit of the hospital. Explain in no more than 250 words, the potential conflict of interest at the board meeting.

Dr. David Paul is a medical doctor at a small private hospital in XYZ city. He sits on the Board of Directors of the Hospital. He is also head of the Neurology Department. The hospital is undercapitalized, and they are having a board meeting to approve the budget. He requires a new MRI machine. However, the cost of the machine will impact the budget and ultimate profit of the hospital. Explain in no more than 250 words, the potential conflict of interest at the board meeting.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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