...HCS/405 Health Care Financial Accounting Many hospitals in the United States are faced with many financial burdens. Hospitals have the challenge of making adjustments according to the economy, patient need, and quality of care. With the downfall of the economy, accounting issues, funding options, capital growth, and capital insufficiency, many hospitals are faced with making and planning financial decision in order to succeed. The Elijah Heart Center analysis simulation shows how to direct finance so that the Elijah Heart Center will have the ability to make good use of the organization funds. Creating a good financial decision for Elijah Heart Center involves analyzing the financial problems that Elijah Heart Center faces while deciding on which course of action should be taken. They must be able to identify and analyze any potential financial problems in order to make financial decisions in take another course of action. In this paper I will show how analysis simulation can help Elijah Heart Center make good use of funds to the best of the organizations ability. The Elijah Heart Center is a Cardiac Care Hospital that is dealing with a significant amount of loss in their accounting issues. The finance Department has reported that the revenue is increasing at a rapid rate with the rising rate of new patients, but the profits are falling. A financial consultant was hired to analyze the financial indicator and make recommendation and options on how to changes...
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...Financial Review Simulation on Elijah Heart Center (EHC) By Karen Boldger-Willey HCS/405 Marjorie Ramano May, 14, 2012 Financial Review Simulation on Elijah Heart Center (EHC) My strategy will be to review the simulation on Elijah Heart Center (EHC), and evaluate the capital shortage, the funding options given, and the funding options given for capital expansions, I will analyze the three phases of capital shortage, funding options for acquiring medical equipment, and the expansion options for the Elijah Heart Center. Focusing on the goals of the hospital, but for the long and short term goals set for EHC. “Built to function as an advanced coronary care unit, Elijah Heart Center (EHC) is a 140-bed cardiac care hospital, based in New York. This 120,000 square foot specialty hospital contains cardiac catheterization laboratories, surgical suites for open-heart surgery, ancillary equipment for radiology, laboratory, nephrology, pulmonology, and other services needed to provide support to the full spectrum of cardiovascular patients. EHC also provides a full range of outpatient cardiac diagnostic services and rehabilitation programs to patients recovering from heart attacks, open-heart surgery, and coronary angioplasty.” (University of Phoenix, 2011) According to Gilbert Sanchez, Chief Executive Officer there has been an increase in patients, and a drop in profits. He has given two years to create a solution to all three phases for the center, including short and...
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...Health Care Financial Accounting Simulation Kanisha Wilson HCS/405 October 20, 2013 Adrian Parker Health Care Financial Accounting Simulation Health care organizations are cutting back on expenses in order to continue to provide quality health care to the community. Cutting back can cause layoffs, the number of patients that who are treated in the health care facility, and how funds are used to keep the organization running. The Elijah Heart Center, located in New York is to have financial difficulties maintaining its hospital’s 140- bed cardiac care unit. I have been selected by the Consulting Firm of Huber and Guizot as the senior consultant to help develop and implement a turnaround strategy. Decisions made during the simulation will be discussed to help Elijah Heart Center on their financial situation. In the simulation reducing agency staff and changing the skill mix were chosen as cost –cutting options. “Whether you as a manager must either review or prepare required data, your responsibility is to recall and apply the elements of consistency, because such data will typically be used for decision making” (Baker & Baker, 2011 p. 152). Reducing agency staff was chosen because by reducing the number of agency staff would help reduce cost by saving money on premiums and contract fees paid to the staff. Changing the skill mix was chosen because it allows the health care organization to hire unlicensed assistants to help the nursing to focus on more important...
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...Simulation Review Paper Joel Chappell HCS/405 November 3, 2014 Latrina Benjamin-Frazier The simulation focused on a hospital that was called Elijah Heart Center which is a cardiac care hospital. The Elijah Heart Center has been according to their financial statement struggling, which has been caused by capital shortages, funding options and their capital expansions. In order to ensure that the overall organization will have enough funds to properly operate it is important that the heath care organization understand how to make the appropriate changes. This paper will go over and take look at the accounting data for the Elijah Heart Center to understand what changes and adjustments can be made to help the organization become more financially stable. When looking at organizations and how they may be able to cut cost, unfortunately sometimes these changes may involve reducing the number of employees or even reducing benefits to have a balanced budget. One must analyze the pros and cons of the decisions that will not only affect the budget but may also affect how the organization operates and even patient care. The recommendation along with a detailed explanation from what was discovered in the simulation are as fallowed. First focusing attention on the capital shortage within Elijah Heart Center. The corporation is unfortunately suffering capital shortage due to what the overall organization is bringing in as revenue is far...
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...| Week 4 Individual Assignment | Simulation Review Paper | | By: Kayte Zbikowski | 7/21/2011 | HCS/405 Health Care Financial Accounting Teacher: Mike Shin | My strategy will consist of three phases. These phases include: capital shortage, funding options for equipment acquisition and funding options for capital expansion. During these three phases I will observe the necessary financial statements and documents. From this information I will analyze the information and decide the best strategy for improvements. I will not only focus on the goals for the clinic, but long term budget goals as well. Phase I: Capital Shortage There were two options that I chose to cut costs. The two options that I chose was to reduce agency staff and changing the skill mix. I chose to reduce agency staff because “Reducing proportion of contract labor used to fill vacancies among patient care workers would reduce costs, staffing nursing units and other patient care areas. The salaries of agency contracted people are twice that of the other hospital staff. Reducing these personnel will tremendously cut down costs. Bridging a working capital shortage is one of the strategies that can help increase the hospital’s revenue if a true concrete plan can be formulated. (University of Phoenix, 2011). I chose changing the skill mix because “Changing the skill mix by hiring unlicensed assistive personnel will offer an effective means of addressing economic realities. This option...
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...Simulation Review HCS/405 October 15, 2012 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...
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...Simulation Review HCS/405 September 2, 2013 Elijah Heart Center (EHC) is a healthcare organization that focuses on patients with heart problems. This 140 bed cardiac care hospital located in New York function as an advanced coronary care center, 120,000 square feet cardiac catheterization labs, surgical suits for open heart surgery, ancillary equipment for radiology, labs, nephrology, pulmonology and service for full spectrum of cardiovascular patients. There is also a full range of outpatient cardiac diagnostic services and rehab programs for patients recovering from heart attacks, open heart surgery, and coronary angioplasty. Although the organization is having some financial problems the patient volume is stable and increasing. As the senior financial consultant I will be working to get things financially under control, I will present a few plans for short and long term goals. I will be working with a great team that includes Gilbert Sanchez, Saiku Takeuchi, Zachary Macholz, and Dr. Brenda Lopez. The Elijah Heart Center has managed to stay focused and in operation do to the satisfied patients that need the services. There is a great team that provides great patient care but there has been a lot of poor decision making in the past that is resulting in a lot of profitable problems. In May 2x03 the financial department reported facing a potential working capital shortfall. In an emergency the hospital might not have enough cash to sustain itself...
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...Simulation Review Paper Vicky Davis HCS/405 September 12, 2011 Kristin McFarland Simulation Review Paper Financial Accounting from a Cardiac Care Hospital’s Perspective In 1975, the first hospital that was constructed in Kelsey is Patton-Fuller Community Hospital. They are most often dedicated to provide quality customer care; they specialize in programs that can maintain the health and welfare of the local community and other population. Patton-Fuller Health Care is a not-for-profit Community Hospital that services care such as emergency medical care, labor, delivery, physical therapy, radiology, cardiology, and surgery for all adults and children. In this paper I will be analyzing financial indicators for decision-making to understand the strengths and weaknesses of a Cardiac Care Hospital. In addition, I will be implementing strategies to improve the cash flow at Elijah Heart Center (EHC). At the same time, I will also be evaluating the funding options for obtaining medical equipment, and also the funding strategies for the success or failure of capital expansion (Apollo Group, 2011). On behalf of the summary and conclusion, I will need to explain what I learned from this simulation, what I would do differently if I performed the simulation over again, and following how I would apply what I have learned at my current or future job (Apollo Group, 2006). Phase I: Capital Shortage The board members at Elijah Heart...
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...Simulation Review University of Phoenix HCS/405 Health care organizations, particularly hospitals face increasing problems managing cash flow due to changes in billing procedures and the economic climate. Research quoted in Fierce Healthcare Finance showed that hospitals are using investment cash flow, normally reserved for capital expenses, to pay for operating expenses. In a study quoted by Fierce Healthcare Finance (Ziegler, 2008) the depth of the problem becomes apparent “Between 2004 and 2007, the 170 hospitals studied by Best allocated a steadily greater portion of their invested assets to cash and short-term investments, climbing from 27 percent in 2005 to 31.1 percent in 2007.”With reduced funds available for capital expenses, it becomes difficult for hospitals to keep up with technology and to thrive. Elijah Heart Center is facing the financial dilemma common in specialized health care organizations, the combination of the need for improved technology, reduced income, and the demand for expansion. Without the needed technology and expansion, there little the hospital can do to improve income. The financial situation requires a combination of strategies to reduce costs and to make the wisest choices regarding acquiring needed technologies and expansion. Phase I: Capital Shortage The goal is to save $900,00 for the first year and to help improve the cash flow problem that Elijah Heart Center is experiencing. The hospital can select two cost cutting options...
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...Simulation Review Paper Kimberly Roehler HCS 405 September 26, 2011 Sandra DiPietro Simulation Review This is a stimulation review of a cardiac care unit that is facing working capital shortages. As the lead financial consultant brought into address the financial indicators and evaluate to bring working capital back to in order at the Elijah Heart Center (EHC). The other financial analyst will focused around addressing issues as they relate to this particular cardiac care unit; what funding can be acquired to garner medical equipment; what funds can be used for capital expansion; finally a summation of findings and a conclusion of what the overall stimulation showed, in regards to how through the analyst were. Financial Accounting from a Cardiac Care perspective: Phase 1: Bridging a working Capital Shortage Facing a working capital shortage, EHC in an emergency state without enough cash to sustain themselves the following where indentified as the reason: huge discount given to managed care companies; higher wages given to contract nurse, because of acute nursing shortage; low Medicare reimbursements; unused equipment placed in patient’s rooms, unbilled. It is the lead financial counselor evaluation that EHC should, change the skill mix, and reduce the use of contracted agencies; till further notice. A review of the financial reports showed that, contracted nurses are paid twice that of the other hospital staff and EHC cannot articulate those kinds of...
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...Simulation Review There are different healthcare, particularly hospital that is face increasing problems with managing cash flow due to the changes in the billing procedures and with the change of economic climate. For the research quoted in Fierce Healthcare Finance showed that hospitals are using investment cash flow, which reserved for capital, so they can pay for operating expenses. There is a study that is quoted by Fierce Healthcare Finance the depth of the problem comes “Between 2004 and 2007, the 170 hospital studied by Best allocated a steadily greater portion of their invested assets to cash and short-term investments, climbing from 27 percent in 2005 to 31.1 percent in 2007” (Ziegler,2008). With all of the reduced funds that is available for capital expenses, it does become difficult for the hospital to keep up with all of the technology and thrives. The Elijah Heart center is facing the financial dilemma common it the specialized healthcare organization, with the combination of the need of improving technology, reduced income, and demand for expansion. With of the technology and expansion, the little hospital can improve income. Phase 1: Capital Shortages The goal for the first year is to save $900,000 to help improve the cash flow that is a problem that the Elijah Heart is experience. The hospital can choose two different cost cutting so that is effecting the goal. The five different cost cutting obtains to choose from are reducing benefits, downsizing...
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...Simulation Review Paper Shunna Billops HCS/457 Marjorie Romano July 25, 2011 The simulation review paper will address the summary of my findings of the financial accounting of the Elijah Heart Center Hospital, according to the financial indicators in the simulation: Capital shortage, Funding options for equipment, Funding options for capital expansion, summary and the conclusion. Capital Shortage The cost cutting options I selected was reducing agency staff and changing the skill mix for Elijah Heart Center. The reason why I chose this option is because we can reduce some cost by not hiring so many contracting nurses to save on payroll and increase the unlicensed staff to be used in some areas more than others to save some revenue and not jeopardize the quality of care for the patients first. I picked loan option 1, which the loan is 1.5 million at 9.45% interest rate, monthly installments of 131,490 for 12 months and no prepayment limitation, so we put nothing up front initially (University of Phoenix, 2011). My outcome was making a smaller loan at a higher rate to defray cost while reducing contracting nurses and utilize the unlicensed staff to be diverse in multiple skills in the hospital and not cut quality of the patient’s care at this health facility. Funding Options for Equipment You do not have to buy a new CT scanner...
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...Stimulation Review Based in New York, Elijah Heart Center (EHC) is a 140-bed cardiac hospital. Although EHC is a much needed entity in New York, profitability is dropping. As mentioned, EHC is facing a potential shortfall in capital due to managed care discounts, contract nursing at higher pay rates, and low Medicare reimbursements. As part of a consulting firm, who deals with these trending issues every day, I will be summarizing what my recommendations are to bring Elijah Heart Center back to a profitable status. Outlined below will be my recommendations for improvement without compromising patient quality. Recommendation for Cash Flow In order to increase cash flow, one must look at the whole picture. Since $900,000 is the savings target for the first year, we are using this figure to base our recommendations. First we must look at contract labor. In most cases, the contract labor or agency labor, are being paid at a higher rate than most of EHC employees would normally make for the same position. Most are doubled in salary. I believe this would also increase morale as sometimes, employees feel a bit of jealousy as these individuals are doing the same job they are performing and are being paid more for the same work. Therefore, my first recommendation has to do with agency labor. I recommend EHC eliminate or reduce agency labor (University of Phoenix, 2011). Next, I believe if we reduce the benefits packages we are now offering by streamlining these packages,...
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...University of Phoenix 12 Economic Issues Simulation HCS/440 Lisa Christopher Economic Issues Simulation Paper The simulation review paper will address the summary of my findings of the financial accounting of the Elijah Heart Center Hospital, according to the financial indicators in the simulation: Capital shortage, Funding options for equipment, Funding options for capital expansion, summary and the conclusion. Capital Shortage The cost cutting options I selected was reducing agency staff and changing the skill mix for Elijah Heart Center. The reason why I chose this option is because we can reduce some cost by not hiring so many contracting nurses to save on payroll and increase the unlicensed staff to be used in some areas more than others to save some revenue and not jeopardize the quality of care for the patients first. I picked loan option 1, which the loan is 1.5 million at 9.45% interest rate, monthly installments of 131,490 for 12 months and no prepayment limitation, so we put nothing up front initially (University of Phoenix, 2011). My outcome was making a smaller loan at a higher rate to defray cost while reducing contracting nurses and utilize the unlicensed staff to be diverse in multiple skills in the hospital and not cut quality of the patient’s care at this health facility. Funding Options for Equipment You do not have to buy a new CT scanner because this machine is the least expensive in the hospitals and it can be upgraded if need be for the life...
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...Simulation Review Mary Kaiser HCS/405 Health Care Financial Accounting July 21, 2014 David Albalat Simulation Review Introduction The simulation review was to capture the capital shortages, evaluate the funding options for acquiring new or refurbished medical equipment and evaluate the funding options for capital expansion for Elijah Heart Center (EHC). After reviewing the simulation our discussion will entail the two cost-cutting and loan options, equipment options and funding is most profitable to EHC’s expansion. Capital Shortage Reducing Agency Staff The two options we chose for cutting the costs for EHC is to reduce the staff from the professional staffing agency and to change the skill mix. The first option is to minimize the number of recruitment staff within the ECH facility. These contractors salaries, when hired by an agency, are double that of an employee in a hospital. When this particular staff is hired to EHC they were not offered any benefits, such as bonuses, insurance, leave of absences pay, etc. Recruitment agencies will offer the staff a signing bonus which does not affect the hospital revenue and expenses. The hospital personnel should evaluate which positions are pertinent to the organization and keep them. Skill Mix The second choice was to incorporate the skill mix of unlicensed personnel in EHC. The administration of EHC is wise to use unlicensed personnel because first of all they do not have to pay them the higher wages of salaried...
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