Premium Essay

Financial Accounting from a Cardiac Hospital

In: Other Topics

Submitted By txnborn79
Words 1108
Pages 5
Financial Accounting from a Cardiac Hospital

If I were in a management position and had to create a working strategy in order for my company to gain strength, I would create a plan involving three phases: capital shortage, evaluation of the funding options for medical equipment, and the evaluation for capitol expansion. I would then run the necessary financial reports, analyze all the collected data, and then decide the best strategy for our improvement. Financial gain is important to the company, however budgeting is a must. Capital shortage, also known as cost cutting, is the first phase of rebuilding when it comes to a facility on the brink of foreclosure. I was asked to choose two areas that in my opinion, would offer the best financial gain for the hospital. The options on the table where downsizing my staff, reducing their allowed benefits, reducing the agency staff, changing the skill mix, or reducing the length of stay that a patient is offered. After careful consideration, the two choices were the reduction of staff benefits and the reduction of agency staff that is brought into the facility. Along with the forced cuts, I was also asked to choose a loan option that would keep the doors open. Comparing the two loan options side by side, I felt that the second option would have been the best for my hospital. It was at a lower percentage rate of 9%, the monthly installment was not as high as it would have been if I had gone with loan option number one, and the closing cash balance would be higher as well. After reviewing the simulation with financial advisors higher ups them I, it was learned that only one of my chosen options would have been correct in order to save the hospital and create revenue. The reduction of agency contracted staff was in fact a good cost cutting measure because the revenue and expenditure projection showed a reduction in...

Similar Documents

Premium Essay

Financial Statements Review

...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. There are a list of reason for this and the list includes, huge......

Words: 1502 - Pages: 7

Free Essay

Health Care Accounting

...Health Care Accounting Desiree Kelly March 21, 2016 U of P The hospital Elijah heart center is a 140-bed cardiac care hospital in New York this 120,000 square foot hospital has cardiac laboratories, radiology services, nephology, and pulmonology services to help those that suffered heart attacks, open heart surgery or any other heart-related illnesses. EHC is facing some financial problems such as capital shortfall, outdated equipment and the need for capital expansion. I was hired to analyze these issues and determine how to help and submit a report of my decisions. Here is the report of my decisions for EHC. Capital Shortage: The cost-cutting options that I choose were to reduced agency staff. Using a third party source to hire staff to help during peak times was helpful but at this time needs to be cut out to save on costs. I also decided to change the skill mix, to have unlicensed assistants help do things such answer phones, file, and input information will help raise the revenue. The loan that I thought was best for EHC is the $1,500.000 with the 9.45% for a 12-month term. I decided on this investment because it allows for early payoff. If the loan was to be paid off in 6 months the interest that would be saved will be $21,297 and there would be saving of more if the option to pay off even earlier than the six months. These changes fixed that capital shortage with EHC, which is causing patient needing services. Funding Options for the Equipment: I decided......

Words: 821 - Pages: 4

Free Essay

Simulation Review

...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...

Words: 1591 - Pages: 7

Premium Essay

Finance Paper

...OFFERING Of GOODWILL HOSPITAL Submitted by Jeevitha Raju E9121 M.B.A 1ST YEAR |Goodwill Hospital and Research Centre | |Focused on neuro and cardiac surgeries | | | |About the company | |Incorporated in 2000, Goodwill Hospital & Research Centre Ltd is engaged in running a multi speciality hospital at Noida (Ojjus Medicare). The hospital provides | |specialty treatment like Neurology and Neuro surgery, Cardiology and Cardiac surgery and Orthopaedics with emphasis on Joint Replacements and Sports Injuries. | |The hospital also offers a wide range of tertiary care services in varied fields of medicine. The services entail comprehensive medical solutions, including | |consultancy, diagnostics and therapy. | |Goodwill Hospital & Research......

Words: 2421 - Pages: 10

Premium Essay

Simulation Review

...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 continued expenditures. Overtime EHC will be able......

Words: 1162 - Pages: 5

Premium Essay

Reporting Practice and Ethics

...Reporting Practice and Ethics HCS/405 Health Care Financial Accounting June 29, 2015 In order to function properly, every company or organization should have a financial plan in place. Health care organizations are part of the service industry and are no exception and cannot successfully operate without proper financial management. Financial management involves the managing of organizational funds in order to meet organizational goals and plays an important role in helping organizations work more effectively. According to Hicks (n.d.), “within accounting and financial management, there are four key elements recognized. The four elements are: Planning, Controlling, Organizing and Directing and Decision Making.” As with all other organizations, health care organizations must follow general ethical standards of conduct and financial reporting practices known as the General Accepted Accounting Principles (GAAP). The four elements of financial planning are set in place to help the financial process operate properly. The purpose of each of these tasks is as follows: * Planning - helps identify the organizational needs and objectives as well as the steps necessary to meet these needs; * Controlling – involves comparing current and past reports or feedback in order to determine if any area of the organization is ineffective or simply needs help. Controlling also ensures that the plans set in place during the planning process are being followed. * Organizing and......

Words: 735 - Pages: 3

Premium Essay

Simulation Review Paper

...Simulation Review Paper Patton-Fuller Health Care is a not-for-profit Community Hospital that has many different types of services. Some of the services that are provided within this hospital are: emergency medical care, physical therapy, radiology, cardiology, labor and delivery, and even surgery for everyone. The Cardiac Care Hospital is a very important part of the Patton-Fuller Hospital, within this paper analyzing the financial indicators that help with the decision making that help in both the weaknesses and strengths within the Cardiac Care Hospital (CCH). 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). Within phase one, one of the simulations observed was the great impact was throughout the cost cutting measures. Some of the options that were given and even used were the reduction of staff, and making changes within skills that were being used. By cutting these two cost, may have seen to some as a bad thing, but in the end was something that needed to be done to help the organization and it did not leave the organization in a shortfall. Reducing the staff was a great option because it helped the organization reduce the costs of training that needed to be done. Reducing staff members also meant that the organization would have fewer salaries to pay, meaning more for other equipment that is needed. The other......

Words: 974 - Pages: 4

Premium Essay

Narayana Heart Hospital

...Narayana Hrudayalaya Heart Hospital Cardiac Care for the Poor Executive Summary The public health care system in India has long been a major issue for the country. Many citizens have been unable to receive the proper health care due to high costs and the inability to reach a capable hospital. Dr. Shetty has founded the Narayana Hrudayalaya Heart Hospital as a solution to this major issue. Utilizing a cost leadership strategy, he has been able to significantly reduce the costs of cardiac procedures. By implementing a government funded insurance scheme, he has also allowed more people than ever to have access to this health care. As the hospital has grown in success, Dr. Shetty has expanded his operations to reach a larger portion of India and to include a more diverse range of procedures. Having built a strong foundation, Dr. Shetty has set his hospital up well to expand globally. Background The Narayana Hrudayalaya Heart Hospital is in Bengaluru, India where it aims to service a higher than traditional percentage of the population. One of India’s biggest problems lies within its public healthcare system. In 2003, India had a growing population of 1.03 billion, making it the second large country in the world. Within this population, the wealth is not skewed evenly compared to most first world countries. It is estimated the top 20% of the population holds half of the country’s wealth, while leaving more than 250 million below the poverty line. To make......

Words: 1947 - Pages: 8

Premium Essay

Stimulation

...affect your well being. This is the same view that you can look at when dealing with financial situation which it is personal use, business, or organization. The decision that we make financially can be economic decisions and not always have to be personal in nature. When making decision for a company or organization you have to sometimes be transparent and look from every view and aspect, because this decision is not only going to affect you it can affect a small or large group of people and even a community just depending on what type of business and services are being offered. In this stimulation review paper I will be review the Cardiac’s Care Hospital’s financial accounting account. The hospital is experiencing some difficulties with accounting matters, capital shortage, capital expansion and funding options. During this review we will discuss some of there methods of accounting and see if it is some ideas or other tools that can be used to help them to better there financial issues. Capital shortage is a huge factor when running any type of business. Capital is the amount of current assets minus the amount of current liability as of a specific date. These amounts are obtained from the company’s balance sheet reports that. To give you a better understanding so that they hospital balance sheet is reporting that the current assets of $500.000 and current liability is $320.000 then the hospital working capital would only be $180.000. But even with a significant amount......

Words: 1158 - Pages: 5

Premium Essay

Analyzing Financial Indicator for Decision

...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......

Words: 1299 - Pages: 6

Premium Essay

Simulation Aid

...analyze the financial indicators to make a decision. In this simulation the financial accounting from Elijah Heart Center a Cardiac Care hospital having a working capital shortage ("Analyzing Financial Indicators for Decision," n.d.) and have taken a preventative evaluation on how the funding option should be used when it comes to acquiring medical equipment, and the possibility of financing expansions. In the first step of phase one simulation, I decided on what I thought was best when it came to cost cutting option to choose to solve the cash flow within the hospital. Besides selecting a loan option that would help cover any capital shortage that can occur if I don’t choose wisely. After I had made my choice, I was also aware, I needed to explain why I had chosen my option and what was the outcome. I decide to go with the best cost cutting by cutting “Reducing Proportion oaf the Agency Contracted Staff” and “Changing the Skill Mix” ("Analyzing Financial Indicators for Decision," n.d.). I chose these two choices because in the Revenue and Expenditure projection showed that the costs would help the prices go down by a significant amount without acquiring any major changes in taxes. Also, Saika Takeuchi, the vice president recommended choosing two of varies categories that would help cut the cost in a major way. Also, it would make revenues increase if the hospital changes in percentage range. The other choice I was able to choose was a loan option that makes the hospital fit......

Words: 1139 - Pages: 5

Free Essay

Comparative Summary

...Comparative Summary HCS/577 July 28, 2014 Comparative Summary Introduction The financial environment of the different types of health care entities is defined by the classification of ownership. The three categories of ownership are for-profit, not-for-profit, and government owned. In the following paragraphs, I will identify one entity from each of the three categories of ownership and describe the financial structure in their financial environment. I will identify the policies unique to each financial environment as well as financial management practices prevalent in the financial environment. I will also explain why effective financial management is more difficult in health care than in other industries. Entities Piedmont Medical Center is a for-profit acute care hospital located in Rock Hill, South Carolina. It is an entity with the Tenet Healthcare Corporation that offers a broad range of surgical and diagnostic services that include advanced heart and stroke care, women and children services, and a 24-hour emergency room. It has received recognition for its cardiac care, cancer care, diabetes management, orthopedic care, stroke care, and surgical care. (Piedmont Medical Center, 2014). Greenville Memorial Hospital is a not-for-profit acute care hospital also located in Greenville, South Carolina. It is an academic teaching hospital with a 24-hour emergency room that provides inpatient and outpatient services for the immediate community as well as a referral......

Words: 1507 - Pages: 7

Premium Essay

Simulation Review Hcs/405

...Simulation Review HCS405 Jan1, 2014   Simulation Review Introduction: Elijah hospital provides both cardiac diagnostic services as well as rehabilitation programs. In this simulation, we will evaluate and assess the funding options for obtaining a new or refurbished medical equipment. Phase 1: By reducing the agency staff, the organization will be saving a lot of money. The other cutting option, that I selected, was hiring unlicensed staff. The second option for phase I is based on loan. The monthly payment period is over in twelve months with no prepayment limitation that is an excellent deal. Taking the first loan will help the hospital close the loan within three months, as compared to the second loan option which could take six months to prepay. Phase II: Choosing refurbished machines will be a good option and will save the hospital almost 50 percent of the cost price as compared to a new one. I realized that it might be best to go with this. I selected the operating loan because it has a lower upfront payment and lower monthly installments. Leasing allows businesses to address the problem of obsolescence. Therefore, when the technology advances and the machine turn out outdated the terms of the loan would allow the machine to be replaced with a new updated model. Phase III: Tax Exempt Revenue Bonds is not the best choice, for it has a usable time set of three years as well as an escrow against gross revenue. I chose HUD 242 loan because it......

Words: 391 - Pages: 2

Premium Essay

Apollo

...APOLLO HOSPITAL AN ASSIGNMENT ON CORPORATE STRATEGY SUBMITTED BY--- GROUP 2. G-02 SUDEEP SHAURYA SHORABH BHATTACAHRJEE GAGANDEEP SINGH VINAY KUMAR BHARDWAJ VIJAYVARGIA RAJOJYOTI BANIK SUBMITTED TO --- Prf. RAJESH VERMA 12/8/2009 Industry analysis of Apollo hospital Health care Industry in India In India, the Healthcare system is split into a public sector, a private sector and a wide network of informal healthcare providers operating together in a large and unregulated network. This irregularity has caused wide disparities in access, especially in regional and rural distribution of healthcare infrastructure. Currently, the Indian healthcare sector is valued at Rs.1, 360 (US $34) billion roughly 6 per cent of GDP. The healthcare business is projected to grow to over Rs.1, 600 (US $40) billion or 8.5 per cent of GDP by 2012, according to Price Waterhouse Coopers (PwC) report, 'Healthcare in India: Emerging market report 2007'. The Hospital Industry Some Facts • India‟s healthcare industry is currently worth Rs 73,000 crore which is roughly 4 percent of the GDP. The industry is expected to grow at the rate of 13 percent for the next six years which amounts to an addition of Rs 9,000 crores each year. • • • • • The national average of proportion of households in the middle and higher middle income group has The population to bed ratio in India is 1 bed per 1000, in relation to the WHO norm of 1 bed per 300. In India, there exists space for 75000 to 100000 hospital......

Words: 6870 - Pages: 28

Premium Essay

Financial Analysis

...Assignment: Financial Analysis Company Overview HealthSouth Corporation is one largest rehabilitation healthcare providers. Healthsouth was founded in 1983 and the companies headquarters in Birmingham, Alabama. The company has hospitals in 27 states throughout the United States and in Puerto Rico. They employ 22,000 team members. Healthsouth primarily operates inpatient rehabilitation hospitals and long-term acute care hospitals. Their hospitals provide treatment on both an inpatient and outpatient basis. The inpatient rehabilitation hospitals offer services to patients who require institutional rehabilitation care, and patient care is provided by nursing and therapy staff as directed by a physician order. HealthSouth’s hospitals provide a higher level of rehabilitative care to patients who are recovering from conditions such as stroke and other neurological disorders, orthopedic, cardiac and pulmonary conditions, brain and spinal cord injury, and amputations. Healthsouth strives to return patients to full strength in less time. The company operates 97 inpatient rehabilitation hospitals, including 68 owned hospitals and 29 jointly owned hospitals; 6 freestanding long-term acute care hospitals; 32 outpatient rehabilitation satellite clinics; 25 licensed hospital-based home health agencies; and managed 4 inpatient rehabilitation units through management contracts. HealthSouth was involved in a corporate accounting scandal in which its Chief......

Words: 828 - Pages: 4