Artificial Intelligence and Cognitive Systems at St. Elizabeth Healthcare

St Elizabeth is one of the most prominent healthcare providers in Cincinnati. Healthcare is considered the heart and soul of Northern Kentucky. It operates various facilities including St. Elizabeth Covington, St. Elizabeth Edgewood, St. Elizabeth Florence, St. Elizabeth Ft. Thomas and St. Elizabeth Grant. Notably, the hospital is sponsored by the Diocese of Covington, and it provides more than $120 million in uncompensated care and benefits in the community every year. Healthcare is determined to provide comprehensive and compassionate care to improve the health of people in the city. The state-of-art technology and dedicated staff help in accomplishing the mission (Danylyshyn et al., 2019).
Notably, the state-of-the-art technology includes internal electronic medical records system. The system allows medical providers and patients to access medical records. The hospital has made significant technological innovations, and it is committed to improving service delivery to the entire community.

Due to the complexity and rise of data in healthcare, artificial intelligence (AI) is becoming increasingly essential in the healthcare sector.  Already, several forms of AI are being applied to different medical facilities, including St. Elizabeth healthcare. The key categories of applications involve diagnosis and treatment recommendations, patient engagement and adherence, and administrative activities (Jiang et al., 2017). Besides, St. Elizabeth, in conjunction with Harvard University Teaching Hospital, is using artificial intelligence to diagnose potentially deadly blood diseases at a very early stage.  Doctors are using AI-enhanced microscopes to scan for harmful bacterias (like E. coli and staphylococcus) in blood samples at a faster rate than is possible using manual scanning (Jiang et al., 2017).
Although the company is using AI in some of its departments, various decisions underlie the future of healthcare in the use of AI and cognitive systems. The findings include expansion, defer or abandon the project altogether. Expansion refers to the increased use of AI technology in the hospital while deferring refers to the postponement of the project to a later date. Deferral could emanate from insufficiency of funds or resources. Although the hospital can abandon the project, it is not advisable due to the complexity and rise of data in healthcare. Therefore, the hospital can either defer or expand the project (Danylyshyn et al., 2019).
Expansion Option Decision Tree
Expansion is the option that allows St Elizabeth Healthcare to undertake specific actions, to expand its operations in the future at little cost. Since St Elizabeth has various facilities of different sizes, the expansion option is the medical facilities will produce different outcomes. For instance, expanding the use of AI and cognitive systems in extensive facilities with high demand has estimated revenue of $800. The low market leads to low income, as indicated in the decision tree.  For the small facilities, AI technology when highly demanded will raise the revenue of $270. Therefore, the hospital management should examine the demand of AI technology in its facilities to ensure optimum payment is collected (Trigeorgis & Tsekrekos, 2018).
An expansion option receives its worth from the flexibility it provides to a company. Once the initial stage of a capital project has been implemented, an expansion option holder can decide whether to move forward with the project. The option to expand can be evaluated at the time the initial project is analyzed (Trigeorgis & Reuer, 2017). Assume that this initial project will give the firm the right to expand and invest in a new project in the future. Assessed today, the expected present value of the cash flows from investing in the future project is V and the total investment needed for this project is X (expressed with a straight line graph showing direct proportionality). The firm has a fixed time horizon, at the end of which it has to make the final decision on whether or not to make the future investment. Finally, the firm cannot move forward on this future investment if it does not take the initial project (Trigeorgis & Reuer, 2017).
The practical considerations associated with estimating the value of the option to expand are similar to those related to valuing the option to delay. In most cases, firms with opportunities to broaden have no specific time horizon by which they have to make an expansion decision, making these open-ended options, or, at best, options with arbitrary lives. Even in those cases where life can be estimated for the opportunity, neither the size nor the potential market for the product may be known and estimating either can be problematic (Trigeorgis & Reuer, 2017).
Lastly, the expansion of the P/E ratio is high because investors are expecting higher earnings growth in the future compared to companies with a lower P/E.  Low P/E can indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends (Danylyshyn et al., 2019).

Looking to get Essay writing help for this assignment? Get custom essay for 15% OFF using coupon code “NEW15” or Buy Used Solution for same paper for less!