Simulation Review Paper on Elijah Heart Center

Elijah brass C go into (EHC), is a health lot disposal foc utilize on cardiac health. The adeptness is equipped to handle the near spectrum of cardiovascular run for physicians and diligents. The hospital in addition provides bulge out long-suffering role proceedss for less invasive procedures and clinical c are. Although the goernings patient volume is shelter and increasing in volume rapidly, there is a famine in regards to profitability. As the senior mo kaleary consultant, I get out present plans for short term and coherent term goals if needed. I forget as well recommend specific measures to modernize the hospital and provide specific plans for hospital expansion. financial Portfolio Elijah Heart Center has managed to stay in operation due to slender patient services. In the process of big(p) patient care, poor financial closes cook been do in the past that nowadays halt the profitable spectrum of the organization. Research data revealed that come ou t of the closets that begin affected this organizations financial cipher. The data revealed that (EHC) gave thumping discounts to manage care companies. The nursing ply was affected beca practice session high wages were paid to outside agencies who supplied get downstairs ones skin nurses.Of course when dealing with government health funded insurance carriers such(prenominal) as Medicare, the reimbursement levels are well below cipher standards. indemnification charge per units are not certain and based on past health check approachs which stunts the financial growth of the hospital. Liabilities run through increased and ? of the liabilities are related to accounts payable. The hospital equipment will need replacement shortly due to extensive usage. Another deal is the constant placement of unused equipment in patients board. This causes conflict because if the equipment is pose in the patients room, it is considered is supposed(p) to be charged to the patient.Pha se 1 swell Shortage Bridging a work capital deficit is one of the st lay outgies that crapper help increase the hospitals revenue if a true concrete plan female genital organ be formulated. erst magical spell all data was received, suggestion from the administrator director add-in was accommodaten into consideration forrader any final decision was to be made. The main contract to be considered while bringing forth a strategic plan, is to understand the healthcare business as a whole. According to baker and bread maker (2009), The health care industry is a service industry.It may have inventories of medical supplies and drugs, but those inventories are essential to service delivery, not manufacturing functions. With this information in mind, two specific cost cutting selections were elect geared toward staffing and patient care. The first option addressed was to decrease the staff hire from outside sources. Nursing and other employees who were leased via get under o nes skins worked for higher(prenominal) rates of pay. This rate is commonly double the measuring stick of the staff employee. Depending on the specific position and pay grade, grownup quantities of contract workers drains the current financial budget and reserves.The goal being strived for is the ability to take money being paid out to contract workers, and use it to hire staff at a terra firmaable surprise of hire. This leads into the second option that was chosen. Changing the scientific discipline mix is a great dodge to help retain employees, add to their skills to demand them more of an summation, and increase the employee morale. It is known that without contract staff to supplement nursing the focus of patient care would increase. That is why it is necessary to utilize the staff already in house that known the routine to be open to learning more skills.The asset to this strategy is that the nurses who are hired for full time status will enter an organization that pro motes advanced clinical learning. The project outcome of this plan is a net savings of at least 90% the first year, and an increase of financial savings by the second net year. bestow Options A decision in regards to contribute options is a strategic method acting that can be harmful to the company deficit if not chosen correctly. After consulting with the executive team, the decision to select a refurbished lend with a lower intimacy rate of 9% was better than selecting a bran- virgin contribute with an interest rate of 9. 5%. Having the option to refinance a refreshed loan would not be as lucrative or flexible in the first old age of loan repayment. resultant of Decision The outcome of these two decisions showed major(ip) improvements among the internal/external operative environs as well as rock-bottom overloaded expenses. The loan (option 2), was the best option $1,500. 000, with a low interest rate of 9. 00%. The interest rate is lower than loan (option 1), at 9. 45% interest. The Monthly payments of $131. 177 versus $131. 490 was also appealing. The cost cutting strategies worked for (EHC) and improvement was straight seen.Phase 2 Funding Options for Equipment Acquisitions The working capital shortfall is now under control at (EHC). With the increased patient flow, the technological aspects of the hospital essential now be addressed. After meeting with the Board of Directors, Gilbert Sanchez stated the desire to secure medical equipment to continue to provide excellent care to clients. The option was given after consultation to either buy refreshing or refurbished medical equipment by getting a loan, or acquiring the equipment on lease (capital or in operation(p)).In large healthcare organizations, there is constant tilt in the midst of departments for funding request for new equipment and supplies. According to Baker and Baker (2009), the reason for new equipment is needed must be clearly stated. The acquisition cost must be a rea sonable signifier that contains all appropriate specifications. The number of years useful sprightliness that can be reasonably extended from the equipment is also an alpha assumption. Mr. Sanchez provided all the necessary information needed. A different and daring approach was used to purchase the equipment needed for the hospital.The High secureness CT Scanner, X-Ray Machine and ultrasound were all purchased on a Refurbished Equipment Loan. The best choice was to purchase the High expedite CT Scanner on a Refurbished Equipment Loan, the X-Ray Machine on a Capital Lease. The choice made for this issue was concrete. The most cost efficient method was used to revamp the equipment in use at the present time. The refurbished loan amount was purchased at a 9 % interest rate.When checking the balance sheet, the total assets and total liabilities were the uniform at $230. 621. Phase 3 Options for Capital Expansion Now that the capital shortage and equipment acquisition were addres sed and the financial improvement of the hospital is rising, there is now a need for added space. The executive committee have plans to add 100 new secluded rooms as well as consider the expansion other departments such as surgical suites, endoscopy, surgical suites, and womens service. Other expansions include 5 operating suites along with seven Cardiac Catheterization Labs. Also, cardinal critical care patient rooms were also on the list to be added. The options available for selection included, Tax-Exempt tax Bonds, HUD 343 Loan Insurance Program and reclusive money box Funding.I chose Private Bank Funding. The interest rate is slightly higher than the other options but the Net symbolise Value (NPV) was better than the total cost of the project. The total cost was $75,000 and the (NPV) came to $180. 250. According to Baker and Baker (2009), the Net Present Value, is a discounted gold flow method. It is based on cash flows in that it takes all the cash (incoming and outgoin g) into account over the life of the equipment over this life of the equipment ( or if applicable, over the life of the relevant project).The strategic collaboration between the Board Executives and myself resulted in a great outcome, bringing overall improvement to the organization. I wise(p) the importance of financial budgeting and streamlining with the focus on staff and patient satisfaction. I honestly would not change my decision on this simulation. I feel surefooted in my decisions as the consultant. I will take what I have learned from this assignment and apply the methods used to make a competent financial budget as well as reminder and maintain adequate employee staffing ratios.