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3 A CEO of a multihospital system is planning to expand operations into various states. It will take several years to get certificate of need

3 A CEO of a multihospital system is planning to expand operations into various states. It will take several years to get certificate of need (CON) approvals so that the new facil ities can be constructed. The eventual cost (in millions of dollars) of building a facility will differ among states, depending on finances, labor, and the economic and political climate. An outside consulting firm estimated the costs for the new facilities as based on declining, similar, or improving economies, and the associated probabilities as shown in Table EX 3.13. The CEO remembered the decision support systems class from graduate studies (a long time ago) and decided to use that information for the companys decision process.

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