Simulation Review Paper

Simulation Review Paper

Alfreda Bostick

HCS/405

July 4, 2011

Adrian Parker

Simulation Review Paper

This is a simulation paper which is going to address financing accounting from the perspective of Elijah Heart Center (EHC). To evaluate the strength of an organization is to remember the important part is to analyze the different strategies of financial operations for this hospital. The topics covered is bridging a working capital shortage, evaluating funding options for acquiring medical equipment, and evaluating undoing options or capital expansion. The Elijah Heart Center (EHC) has decided to hire a financial senior consultant to help make all these decisions and obtain some recommendations.

As the senior consultant hired to give recommendations which option is best for short-term and long-term, a recommendation on what is the best loan option, and the best loan option for an expansion to Elijah Heart Center (EHC). Also there will be a research on the balance sheets to see what expenses that are being paid out and what revenue the Elijah Heart Center (EHC) will have to help improve on those major points.

As the senior consultant, the two appropriate cost cutting measures chosen were reducing agency staff and changing the skills mix. The hospital will be able to save more money by cutting agency staffing. The agency staffing gets paid twice as much as regular employees. The reason the agency staffing gets paid more is that they are only hired temporarily and have a signed contract. Choosing this option will also be changing the skills mix. Agency staffing is only hired to do one specific job and with the regular employee’s that can do the job will be cutting back on paying two people to do the same job. These two options are chosen because the revenue and expenditure projects show the costs would go down and would not cause significant changes to the revenue. Saika Takeuchi recommended also that these two choices would cut cost and also make the revenue...