Simulation Paper Hcs/457

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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 because this machine is the least expensive in the hospitals and it can be upgraded if need be for the life of this machinery (University of Phoenix, 2011), so I chose buying a refurbished scanner, plus you can upgrade when needed, and do not have to pay the fee that goes with it, which saves the hospital in the long run.

Capital lease option for the x-ray machine I picked. Lease…...

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