HCS 405 Essays and Term Papers -Simulation Review

HCS 405 Essays and Term Papers

Simulation Review: Elijah Heart Center Healthcare can be considered one of the most profitable industries around today. This potential for revenue has made it very important to have a financial team that fully understands the workings of a healthcare organization. There are so many areas that can easily go wrong if the wrong financial decisions are made. Using the simulation helped one to understand the different outcomes possible when needing to make certain financial decisions that many organizations face today.
Phase I: Capital Shortage The main problem with Elijah Heart Center is that although the center is doing well, it seems to be growing so fast that profitability is dropping. This is because of an increased patient volume and an increase in the wrong staff. The cost-cutting options that I selected were to reduce agency staff and changing the skill mix. I opted for “reducing proportion of agency contracted staff” because a large portion (almost twice that of employees directly hired by the hospital) of the revenue was being wasted in this area. The hospital pays premiums to staffing agencies that is just not necessary. Another thing to remember is that the skill level that these staffing agencies have is much lower when comparing them to the hospital staff, which have been there longer and are more experienced with patient care. I also chose to I noticed that once I selected this, the revenue and expenditure projections changed to where it was needed, plus this selection only slightly changed the quality of care. That was one area that I wanted to make sure that remained the least affected by the choices that I made. The loan option that was selected was loan option 1 in order to improve the financial conditions at the hospital. Since EHC will be receiving $2,3000,000 as payments……

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HCS 405 Essays and Term Papers