Simulation Review Paper on Elijah Heart Center

Elijah means Center (EHC), is a tumesceness c ar scheme emphasised on cardiac health. The knack is equipped to handle the full spectrum of cardiovascular run for physicians and perseverings. The infirmary besides provides step forward persevering services for less invasive procedures and clinical boot. Although the organizations patient intensiveness is stable and increasing in volume rapidly, at that place is a deficit in regards to profit salient power. As the senior(a) pecuniary consultant, I go out present plans for short(p) term and long term goals if needed. I will also recommend unique(predicate) measures to modernize the hospital and provide specific plans for hospital expansion.Financial Portfolio Elijah Heart Center has spotd to stay in operation c every last(predicate)able to subtle patient services. In the process of colossal patient care, poor financial decisions have been give in the past that now hinder the economic spectrum of the organizatio n. Research data revealed that fruits that have affected this organizations financial compute. The data revealed that (EHC) gave biographysize discounts to manage care companies. The nursing provide was affected beca subprogram high(prenominal) wages were paid to outside agencies who supplied contract nurses.Of contour when dealing with government health funded insurance carriers such as Medicare, the reimbursement levels are well below budget standards. indemnity deems are non flowing and based on past medical toll which stunts the financial growth of the hospital. Liabilities have increased and ? of the liabilities are related to sexual conquests payable. The hospital equipment will need deputy soon due to extensive usage. An early(a) issue is the constant placement of unused equipment in patients board. This causes conflict because if the equipment is placed in the patients room, it is considered is supposed to be charged to the patient. phase angle 1 Capital Shor tage Bridging a working(a) capital deficit is one of the strategies that rear end back up increase the hospitals revenue if a true concrete plan can be formulated. Once all data was received, suggestion from the executive Board was hold backn into consideration before whatsoever final decision was to be made. The main focus to be considered while bringing forth a strategic plan, is to belowstand the healthcare business as a whole. According to bread maker and Baker (2009), The health care industry is a service industry.It whitethorn have inventories of medical supplies and drugs, but those inventories are incumbent to service delivery, not manufacturing functions. With this information in mind, dickens specific cost in the raw wefts were chosen geared toward moduleing and patient care. The first off survival of the fittest addressed was to decrement the staff hired from outside sources. Nursing and other employees who were hired via contracts worked for higher rates of pay. This rate is normally double the amount of the staff employee. Depending on the specific position and pay grade, large quantities of contract workers drains the sure 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 reasonable rage of hire. This leads into the wink option that was chosen. Changing the skill mix is a considerable dodging to help retain employees, add to their skills to make them more of an asset, and increase the employee morale. It is known that without contract staff to supplement nursing the strain 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 attitude will enter an organization that promotes advanced clinical learning. The projected outcome of this plan is a profit savi ngs of at least 90% the first year, and an increase of financial savings by the second net year. Loan Options A decision in regards to loan options is a strategic method that can be harmful to the company deficit if not chosen correctly. by and by consulting with the executive team, the decision to appoint a refurbished loan with a lower involvement rate of 9% was better than selecting a unusedfound loan with an interest rate of 9. 5%. Having the option to refinance a new loan would not be as lucrative or flexile in the first years of loan repayment. matter of Decision The outcome of these two decisions showed major improvements among the congenital/external working environment as well as decreased overloaded expenses. The loan (option 2), was the outflank preference $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 st rategies worked for (EHC) and improvement was immediately seen.Phase 2 reinforcement 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(prenominal) now be addressed. After meeting with the Board of Directors, Gilbert Sanchez stated the liking to corrupt medical equipment to continue to provide excellent care to clients. The option was given after character to either buy new or refurbished medical equipment by getting a loan, or acquiring the equipment on lease (capital or operating).In large healthcare organizations, there is constant competition betwixt 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 reasonable figure that contains all appropriate specifications. The number of years useful life that c an be reasonably extended from the equipment is also an important 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 pep pill CT Scanner, roentgen ray Machine and Ultrasound were all purchased on a Refurbished Equipment Loan. The optimal choice was to purchase the High Speed CT Scanner on a Refurbished Equipment Loan, the roentgenogram Machine on a Capital Lease. The choice made for this issue was concrete. The most cost effective 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 amount of money assets and total liabilities were the same at $230. 621. Phase 3 Options for Capital Expansion Now that the capital shortage and equipment acquisition were addressed 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 private rooms as well as consider the expansion other departments such as surgical suites, endoscopy, surgical suites, and womens service. Other expansions allow 5 operating suites along with seven cardiac Catheterization Labs. Also, twenty critical care patient rooms were also on the list to be added. The options accessible for selection included, Tax-Exempt Revenue Bonds, HUD 343 Loan Insurance Program and hush-hush Bank Funding.I chose Private Bank Funding. The interest rate is slightly higher than the other options but the Net founder think of (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 cash flow method. It is based on cash flows in that it takes all the cash (incoming and outgoing) 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 collaborationism between the Board Executives and myself resulted in a great outcome, bringing overall improvement to the organization. I versed the importance of financial budgeting and streamlining with the focus on staff and patient satisfaction. I honestly would not revision my decision on this simulation. I feel positive in my decisions as the consultant. I will take what I have learned from this assignment and have the methods used to maintain a competent financial budget as well as varan and maintain adequate employee staffing ratios.