...Simulation Review Amber Gosney HCS/405 February 11, 2013 Paul Herskovitz Simulation Review This paper provides information regarding a simulation review that was intended to show how a hospital determines revenue and expenditures. The information was based on the Elijah Heart Center (EHC), and all decision was made with careful analysis of EHC employees, along with me. Capital Shortage In the simulation activity I chose two types of cost-cutting options. The first choice was to minimize the amount of agency staff within the facility. Contract laborers require more money for ‘hire’. Typically this higher pay is due to the fact that they are not usually offered ‘in-house’ benefits. Not all agency staffing has to be laid off. Hospital personnel can evaluate which positions are more pertinent, and keep those. Contract laborers are ‘hired’ on with the understanding of being ‘laid-off’ at some point. It is more legit to rid of or lesson those contractors versus those ‘in-house’. Furthermore, contract laborers are not as skilled as those ‘in-house’ laborers who consistently have direct care of patients. The second choice was to change the skill mix. While hiring unlicensed personnel may not be ideal, it would sure save money. Unlicensed personnel do not require as much pay because they are unlicensed, and do not hold as much training or education. Depending on the job duties, unlicensed personnel can be utilized in more than one setting...
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...WWW.STUDENTWHIZ.COM HCS 405 Week 2 Health Care Financial Terms Paper The theme of HCS 405 is to enable students to learn about the financial statements and other financial transactions in the hospital industry. There are various topics in HCS 405 like balance sheet, statement of revenues and expense, revenue cycle, payer mix and revenue. There will be five weeks in the course of HCS 405 in which the above topics will be covered. There will also be the study about the financial worksheet and reporting practices. It will be taught to the students that organizations must comply with the requirements of ethics and proper disclosure of the statements. In HCS 405 week 1, there will be teaching of balance sheet. Balance sheet is defined as the financial statement of hospitals that tells about the assets, liabilities and equity of shareholders at a specific point of time. In HCS 405 week 2, earning statements will be taught to the students. Statement of revenues and expense is one of the financial statements which are used to identify the revenues or losses of the hospitals for the particular period. In the course, there will be different multiple choice questions that will be provided to the students to test their understanding. After it, the solutions are also provided to check the correctness. There will be the final exam in which all the topics will be covered. The HCS 405 week 3 will include the revenue cycle of hospitals. . It is defined as the process in which the revenues...
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...Course Design Guide HCS/405 Version 5 1 Course Design Guide College of Natural Sciences HCS/405 Version 5 Health Care Financial Accounting Copyright © 2012, 2010, 2007, 2005, 2004, 2002, 1999 by University of Phoenix. All rights reserved. Course Description This course provides an understanding of the general principles of accounting applied in the health care environment. It includes an overview of sources of revenue for various health care entities. The fundamentals of financial planning, cost concepts, capital budgeting, and management analysis are applied in the health care environment. Issues surrounding the development and management of budgets are also examined. Policies Faculty and students will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Baker, J. J., & Baker, R. W. (2011). Health care finance: Basic tools for nonfinancial managers (3rd ed.). Sudbury, MA: Jones & Bartlett Publishers. All electronic materials are available on the...
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...HCS 405 week 1 Health Care Financial Terms Worksheet Paper - WWW.STUDENTWHIZ.COM Introduction The HCS 405 week 1 financial terms worksheet throws light on some of the most basic concepts of the healthcare business. Understanding health care financial terms is a prerequisite for both academic and professional success. The health care business helps the nation by providing the building blocks that the citizens need to live a successful and healthy life. The worksheet is intended to ensure that the students understand some of the basic terms used in the business world of the health care industry. The purpose of HCS 405 individual and team assignments is to make the students aware about the numerous strategies employed in the financial and other departments of a health care sector. The students attending to the HCS 405 need to understand the significance of the healthcare industry. The employees of the company strive hard every day to fulfill the mission of the company by providing millions of families, seniors, and children of the country with access to good quality healthcare products and services. The questions are strategically framed to bring out the major theme of each of the HCS 405 week assignments. For example, decision-making is the process of making sound financial decisions with the aid of your controlling, organizing, and planning results and analysis. It defines the roles for various employees of the company like the financial manager. There is a need for the mangers...
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...Financial Review Simulation on Elijah Heart Center (EHC) By Karen Boldger-Willey HCS/405 Marjorie Ramano May, 14, 2012 Financial Review Simulation on Elijah Heart Center (EHC) My strategy will be to review the simulation on Elijah Heart Center (EHC), and evaluate the capital shortage, the funding options given, and the funding options given for capital expansions, I will analyze the three phases of capital shortage, funding options for acquiring medical equipment, and the expansion options for the Elijah Heart Center. Focusing on the goals of the hospital, but for the long and short term goals set for EHC. “Built to function as an advanced coronary care unit, Elijah Heart Center (EHC) is a 140-bed cardiac care hospital, based in New York. This 120,000 square foot specialty hospital contains cardiac catheterization laboratories, surgical suites for open-heart surgery, ancillary equipment for radiology, laboratory, nephrology, pulmonology, and other services needed to provide support to the full spectrum of cardiovascular patients. EHC also provides a full range of outpatient cardiac diagnostic services and rehabilitation programs to patients recovering from heart attacks, open-heart surgery, and coronary angioplasty.” (University of Phoenix, 2011) According to Gilbert Sanchez, Chief Executive Officer there has been an increase in patients, and a drop in profits. He has given two years to create a solution to all three phases for the center, including short and...
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...Simulation Review HCS405 Jan10, 2013 Simulation Review Introduction: Elijah hospital provides both cardiac diagnostic services as well as rehabilitation programs. Even though the hospital’s patient volume is steady and increasing, the profit margin is dropping. In this simulation, we will evaluate and assess the funding options for obtaining a new or refurbished medical equipment. Phase 1: Capital Shortage: I selected these options because I felt it was an excellent opportunity for the association to cut down its cost and save money. 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. Moreover, the unlicensed staff will require less skilled training as compared to licensed nurses. The second option for phase I is based on loan. It consists of a six month repay loan period with the total interest payout of $56,589 and $21,297 interest saved. The monthly payment period is over in twelve months with no prepayment limitation that is an excellent deal.. I chose option one loan plan because it has no prepayment limitation. 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: I chose to take the refurbished loan for the high-Speed CT scanner. Choosing refurbished machines will be a good option and will save the hospital almost 50 percent of the cost price...
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...Kaye Spotz HCS 405 June 18, 2012 Diana Schilling Simulation Review Simulation Review The object of the simulation review is to explore ways to bridge a working capital shortage, evaluate funding options for acquiring medical equipment, and evaluate funding options for capital expansion. These are common problems that face all businesses at one time or another and making the correct decisions determines which direction a business goes in prosperity or demise. PHASE I The cost cutting actions that I chose are reducing agency staff and changing the skill mix. When a business hires employees through an agency there are many added expenses that are paid, in some instances this is necessary for licenses positions; however, there are many duties that are performed by a nurse that could just as easily be performed by a nursing assistant, medical assistant, or another staff member. By being able to hire less qualified people to help out with the non essential duties of a nurse that would allow you to have fewer nurses on staff and the nurses you have would be performing duties that require their certification/license. I also chose loan option one because with the prospect of a large sum of money coming from Medicare this option offers no prepayment limit. Even though the interest is a little higher with this option, if it is paid off within three months rather than having to wait the six months with option two there is a great deal of money that can be saved there as...
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...Simulation Review By: Jessie Vest HCS/405 11/21/2011 For this assignment we had to review the Analyzing Financial Indicators for Decision Making. I had to look at three different phases of the simulation review. During each phases there was different categories that I had to look into. So to begin things off I will be first talking about the first phase of the simulation review. During the first phase they ask which cost-cutting options did I select and why I selected them? The cost-cutting option that I selected was “Reducing Agency Staff and Changing the Skill Mix.” I had selected these because they made more since to me. When looking at the things I picked they really make since to me. Meaning why would you have an agency working for you when you can have your own employees picking up extra shifts and so forth. I was also thinking when I picked that topic that with reducing agency staffing my organization would also be saving a ton of money. When you use agency staffing you are spending a lot more then you would when just using your own employees. The second option that I picked was changing the skill mix. Meaning that with the more skills that you have the less money that you have to put out for all that training. Also with the skills that you do have you are able to do more of the skills that are required of you for your job and even more sometimes. I also believe that this was a good pick because a lot of organizations are requiring more skills but...
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...Angela Johnson HCS/405 4/20/15 Simulation Review David Catoe Axia College University of Phoenix In my paper I will be providing information that pertains to how hospitals determine their revenue and expenses through using a simulation program. The information that is provided is based on The Elijah Heart Center and their results were carefully based on their analysis and decisions for staffing of the center, different types of equipment that is needed, along with their capital expansion, and any information that I may provide. Phase 1: Capital Shortage, in this simulation activity it has provided us with two different types of cost cutting options. The first was to minimize the amount of staff that the hospital uses. This decision was made because they knew that if the agency money would get more money if they hired additional staff from an agency and did not provide benefits. The agency personnel, that has been hired is already aware that at any given time they can be let go from their position and their position can be filled by a new hired person. Elijah heart Center may want to stop hiring agency contractor and start using the employees they already have. The cost cutting goal that needed to be reached had to be a cost savings of 750,000. The option that was selected has exceeded the amount of 811,249 just for the first quarter. This type of option was not a cost saving for Elijah Heart Center. Perhaps if Medicare...
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...Simulation Review Carmela Peterkin-Wilson HCS 405 10/15/2013 Lawrence Anderson Simulation Review In this paper I will talk about a simulation review I completed on the financial hardships of Elijah Hearth Center (ECH), a one hundred and forty bed cardiac care inpatient hospital as well as outpatient and rehabilitation services located in New York City. Even though the center’s revenue is increasing as well as ratio of new patients they are not seeing the profits increase at the same level. Because of their low profit margin the center is looking to save $750,000 in the first quarter for a few projects that they feel will help raise their profit margin; They have indicated three areas to work on, phase I is to bridge a working capital shortage to have more operating cash on hand, phase II is to evaluate funding options for the acquisition of additional medical equipment to better serve their patients and phase III is to evaluate several options for additional funding for the expansion of building a new center to house an extra one hundred rooms to efficiently accommodate new patients. Phase I: Capital Shortage The two cost cutting option I choose were to reduce agency staff because I saw that the salary they were paid was double the salary of the hospital staff and patient care would be very slightly affected by this reduction which was another reason I felt that this cost cutting option was a good choice for the center, patient satisfaction is very important...
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...Simulation Review Mary Kaiser HCS/405 Health Care Financial Accounting July 21, 2014 David Albalat Simulation Review Introduction The simulation review was to capture the capital shortages, evaluate the funding options for acquiring new or refurbished medical equipment and evaluate the funding options for capital expansion for Elijah Heart Center (EHC). After reviewing the simulation our discussion will entail the two cost-cutting and loan options, equipment options and funding is most profitable to EHC’s expansion. Capital Shortage Reducing Agency Staff The two options we chose for cutting the costs for EHC is to reduce the staff from the professional staffing agency and to change the skill mix. The first option is to minimize the number of recruitment staff within the ECH facility. These contractors salaries, when hired by an agency, are double that of an employee in a hospital. When this particular staff is hired to EHC they were not offered any benefits, such as bonuses, insurance, leave of absences pay, etc. Recruitment agencies will offer the staff a signing bonus which does not affect the hospital revenue and expenses. The hospital personnel should evaluate which positions are pertinent to the organization and keep them. Skill Mix The second choice was to incorporate the skill mix of unlicensed personnel in EHC. The administration of EHC is wise to use unlicensed personnel because first of all they do not have to pay them the higher wages of salaried...
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...Health Care Financial Accounting Simulation Kanisha Wilson HCS/405 October 20, 2013 Adrian Parker Health Care Financial Accounting Simulation Health care organizations are cutting back on expenses in order to continue to provide quality health care to the community. Cutting back can cause layoffs, the number of patients that who are treated in the health care facility, and how funds are used to keep the organization running. The Elijah Heart Center, located in New York is to have financial difficulties maintaining its hospital’s 140- bed cardiac care unit. I have been selected by the Consulting Firm of Huber and Guizot as the senior consultant to help develop and implement a turnaround strategy. Decisions made during the simulation will be discussed to help Elijah Heart Center on their financial situation. In the simulation reducing agency staff and changing the skill mix were chosen as cost –cutting options. “Whether you as a manager must either review or prepare required data, your responsibility is to recall and apply the elements of consistency, because such data will typically be used for decision making” (Baker & Baker, 2011 p. 152). Reducing agency staff was chosen because by reducing the number of agency staff would help reduce cost by saving money on premiums and contract fees paid to the staff. Changing the skill mix was chosen because it allows the health care organization to hire unlicensed assistants to help the nursing to focus on more important...
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...Simulation Review Paper Joel Chappell HCS/405 November 3, 2014 Latrina Benjamin-Frazier The simulation focused on a hospital that was called Elijah Heart Center which is a cardiac care hospital. The Elijah Heart Center has been according to their financial statement struggling, which has been caused by capital shortages, funding options and their capital expansions. In order to ensure that the overall organization will have enough funds to properly operate it is important that the heath care organization understand how to make the appropriate changes. This paper will go over and take look at the accounting data for the Elijah Heart Center to understand what changes and adjustments can be made to help the organization become more financially stable. When looking at organizations and how they may be able to cut cost, unfortunately sometimes these changes may involve reducing the number of employees or even reducing benefits to have a balanced budget. One must analyze the pros and cons of the decisions that will not only affect the budget but may also affect how the organization operates and even patient care. The recommendation along with a detailed explanation from what was discovered in the simulation are as fallowed. First focusing attention on the capital shortage within Elijah Heart Center. The corporation is unfortunately suffering capital shortage due to what the overall organization is bringing in as revenue is far...
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...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 changes...
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...Simulation Review HCS/405 October 15, 2012 Simulation Review: Elijah Heart Center Healthcare can be considered one of the most profitable industries around today. This potential for revenue has made it very important to have a financial team that fully understands the workings of a healthcare organization. There are so many areas that can easily go wrong if the wrong financial decisions are made. Using the simulation helped one to understand the different outcomes possible when needing to make certain financial decisions that many organizations face today. Phase I: Capital Shortage The main problem with Elijah Heart Center is that although the center is doing well, it seems to be growing so fast that profitability is dropping. This is because of an increased patient volume and an increase in the wrong staff. The cost-cutting options that I selected were to reduce agency staff and changing the skill mix. I opted for “reducing proportion of agency contracted staff” because a large portion (almost twice that of employees directly hired by the hospital) of the revenue was being wasted in this area. The hospital pays premiums to staffing agencies that is just not necessary. Another thing to remember is that the skill level that these staffing agencies have is much lower when comparing them to the hospital staff, which have been there longer and are more experienced with patient care. I also chose to I noticed that once I selected this, the revenue...
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