Hcs 405 Simulation Review Essay

Purchasing new MRI scanners for the hospital is a good idea for the hospital because although expensive for the first time purchase, the maintenance issues will be less. Any product reused or refurbished automatically requires more maintenance. The only time a refurbished item is very good in comparison to the average life span of a new one is if all of the mechanics have been completely replaced with brand new pieces and the body of the machine is the only thing refurbished but that would be very unlikely. Maintenance costs is what will be cut over time and in the end the hospital will be happy that they purchased new medical machinery. It ensures that the machine will do the job correctly the first time around and doctors have more accurate results for patients.

From the article, both machines run faster, produce clearer films and meet all safety standards. So making a choice on which machine to buy will be based on other factors rather than these. Which machine brings the greatest benefit to the hospital and which is paid for by itself are among the factors to consider. Whichever one l chose between the two, I will have to deal with a problem called opportunity cost. Both the mammogram and the MRI machines cannot be purchased at the same time. The current budget allocated to the department cannot take care of both machines. This means one of machines will have to be selected over the other. Opportunity cost is the benefit, profit, or value of something that must be given up to acquire or achieve something else. (www.Businessdictionary .com) If l chose the mammogram machine over the MRI machine, then the opportunity cost is letting go of the MRI machine.

“Sentara-backed company has been chosen to manage 200,000 Medicaid enrollees across 23 Alabama counties” (“About Sentara Healthcare”). The hope of this relationship will be to provide Medicaid recipients with services across numerous health systems in the north and west central Alabama counties. Alabama has approved a new delivery model for Medicaid within the state. This partnership with Sentara will help provide a leg up for the Medicaid system because Sentara has “experience in providing managed care services to Medicaid enrollees in Virginia as well as a similar mission of a long successful track record in serving Medicaid patients (“About Sentara Healthcare”).

The financial statements of American Heart Association convey valuable information to outside users about the organization and how it utilizes financial resources. The objective of this essay is to identify five things that can be learned about an organization from their financial statements.

Not to mention that using an operating lease will also keep the cost off the balance sheet. However, after submitting all the choices into the simulator, it was discovered that the recommended choices would have been a refurbished option for the CT, a capital lease for the x-ray machine, and an operation lease for the ultrasound machine.

For the tenth straight year financial experiments have been recorded as the number one concern of healthcare managers, according to a yearly survey from the American College of Healthcare Administrators. Approaching in second was healthcare improvement implementation, trailed by government orders, and patient protection and excellence, both of which graded third. This just reproduces the massive pressures that hospitals are under right now, says (Deborah J. Bowen), president/CEO of ACHE. Everyone is plummeting functioning prices and thinking in a different way about how they are going about moving from fee for service to these value based payments where quality and finances are accounted for. It's not commercial as normal by any elasticity

My challenge was to decide on the best strategy to solve the cash flow problem at Elijah Heart Center (EHC). In addition, I had to implement two measures to achieve a cost saving target of $750,000 for the first quarter.

There are proper steps that could be taken in order to make the right decisions when working in the health care industry. Hospitals are responsible for providing health related services while keeping in mind of the budget restrictions. There are steps that can be taken to achieve an accurate decision, in which avoids mishaps resulting from using outdated equipment or even overbuying. First of all, management within the hospital should take note of what equipment already exists and is currently in use (US healthcare systems, 2013). There could be a case where a proper note of the equipment is not taken and the nurses/hospital staff would not be able to find equipment in time. In result, there is a false perception of needing to purchase equipment

In summary, acquiring a new CT scanner will not only benefit the department but the organization and patients as a whole. When compared to other hospitals with similar ED and CT volumes, those facilities had a total of 4 or more CT scanners in comparison to our two scanners. Therefore, with the increased volumes of our ED, the CT department is running very lean and there is no other way to relieve the workload capacity. Acquiring this third scanner will streamline all ED patients; while increasing all opportunities for growth as an organization and in the clinical

In terms of financial and the NH’s goal of affordable health care, the NH heart hospital could be described as successful. Financially, NH’s income statement from the HBr case file for FYE March 31, 2004 projected an 35,416,000 Rs of after tax profits which offsets a major portion of the loss incurred from the previous fiscal year. The generation of profits for indicate the success of the hospital in its growth from its start in 2001 and its expansion. This performance can be attributed to NH’s plan of leveraging its practitioners’ reputation and high quality care to attract paying customers to offset losses incurred from admitting financially constrained individuals at below break even cost. For FYE 2004, NH generated 63% at above break

Now it is understood what the CEO and budget office objectives are for the HCO. Consequently, there are many requests that may appear top priority to a conglomerate of HCO physicians and staff. However, it is evident if a request for purchase is outside of the budget, the finance committee will convene to discuss the proposed purchase. The HCO requires intuitiveness, prudence, and wisdom decipher needs vs. wants. For example, new technology provides better access to patients and quality improvement. So, it is best to purchase technological equipment if it is out date to improve efficiency. On the other hand, it would not be prudent to purchase equipment that is for leisure or personal use.

Health care is one of the largest growing industries in the country. Technology and medical advancements attribute to the constant changes in the health care industry. The economy also continues to change, and with the changing economy health care cost continue to rise. Companies across the nation have either closed or moved to other countries. El Paso County Clinic is struggling to keep the doors open. Buduget cuts have affected the clinic tremendously. The El Paso County Clinic’s budget has been cut by 15%. The population affected by the budget cuts are Medicaid recepients.

The market size of the medical equipment rental industry has seen a large increase over the past five years. Starting in 2009, the market has seen an increase due to both a recession and the rising costs of medical equipment (Turk). Because of both of these factors, medical facilities have been forced to cut back and find new ways to save money. Through this industry, hospitals have begun to rent their medical equipment rather that to buy it, saving the facilities money while not hurting patient care. According to IBIS World, the medical equipment rental industry makes around a 1.3 billion dollar profit each year as well as employing around twenty thousand employees (Turk). Furthermore, the market is growing at 4.7 percent annually and is expected to grow even faster in future years (Turk).

The current Hospitals goals should be changed to focus on making health care affordable to all, by categorically making their patients to adopt government insurance programs, which are more stable and with fewer risks of problems associated with economic down turn. Hospitals should also adopt effective management systems, which would make them more competent in managing their debts and cash. The health care institutions should establish other money generating programs in order to reduce their over dependence on loans from banks.

New equipment is available that will reduce annual cash operating costs to $21,000. The equipment costs $103,000, has a service life of six years, and has an estimated