Essay on Simulation Review: Hcs/405

1236 Words Sep 8th, 2013 5 Pages
Simulation Review
Janette E. Guevara
August 26, 2013
Todd Brown

Simulation Review I have been brought in as a financial advisor to assist Mr. Gilbert Sanchez, CEO at Elijah Heart Hospital (EHC) to find some cost efficient ways to continue to provide quality care but at the same time reduce costs for the organization. EHC is a hospital that specializes in Cardiac surgeries and procedures. They would like to expand and have a promising growth in patients as well as revenue, but with the decrease in reimbursements from their primary sources of revenue, new strategies to save money are a much needed organization-wide goal. Mr. Sanchez has enlisted the help of my firm, Huber & Guizot to help find a good financial plan and
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These employees can take care of the simpler tasks that way the nurses and physicians can spend their time with patient care. They will be trained to do tasks such as vital signs, feeding, moving, and bathing patients. By implementing these cost-cutting strategies we have surpassed our original savings goal by $61,249. Our actual savings is $811,249 in the first quarter. To solve the current cash flow at EHC I have chosen loan option one (1). This loan has a slightly higher interest rate then Option two (2) but there is no early pay off penalties. The loan amount is $1,500,000 with an interest rate of 9.45%. This debt will be paid off in the next six months and the organization will pay just under $33,000 in interest. I have chosen the correct and most effective cost-cutting measures for EHC. In the second phase Mr. Sanchez has decided to obtain some new equipment to provide better medical care and offer more services in within the organization. This will increase reimbursements from payors, as well as save our patients time and stress from having to go to different facilities for imaging studies. Mr. Sanchez has decided to get a Computerized Tomography machine (CT scan), an X-ray machine, and also an Ultrasound machine. It is up to me to decide whether it is in the organizations best interest to lease, purchase or buy refurbished. I have chosen to purchase the high-speed CT scanner on a capital lease. I chose this option because I thought this

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