a large multi-hospital system, there is the need to achieve the best outcomes possible. Administrators are faced with the question: Should the organization centralize authority and decentralize execution, or should the individual components have the authority to do what they think is best to do locally?

• Discuss the theory of optimization/sub-optimization.
• Consider how optimization/sub-optimization impacts various stakeholders. Does your opinion change if you place yourself in someone else's shoes? Explain why or why not.