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Financial Accounting from a Cardiac Hospital

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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...

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