Elijah Health Center

Elijah Heart Center

Based in New York Elijah Heart Center provides services related to cardiac care. Elijah within its occupancy can hold 140 patients at capacity. Elijah is facing an arduous task to efficiently meet demand due to a large increase in volume causing a decrease in profitability due to inefficiencies and lacking economies of scale. Service provided at the center includes; open heart surgery, pulmonology, on-site laboratory, radiology care and cardiac catheterization. The Heart Center must begin to correct the current financial course that is being navigated. Financial consultation will be based on opportunities for short-term financing and emphasizing goals planning which can be focused during the next 90 days. Reviewing accounts receivable, inventory and the cash conversion cycle will likely yield areas that are prohibiting growth and ability to raise capital. Recommendations will be made to the senior managers at Elijah Heart Center. Each decision carries a degree of risk, but decisions should be made to select risk, which will enable building opportunities through maximizing financial gain and mirror the goals of the organization.

Alternate Short-Term Financing Sources

Immediately the Elijah Heart Center should work to reduce the current dependency that has developed related to usage of contracted agency staffing personnel. Currently service industries such as healthcare spend between 40-60% or more on staffing; with this massive cost agency staffing likely adds a considerable percentage increase to Elijah’s overall labor expenses.

Likely there is a comfort level with the current staffing agency personnel who currently provide services to patients at the Heart Center. Based on this dependence there should be a plan to eliminate the agency through phases over a quarter. Utilizing a phased approach will help assure customer service is maintained while permanent employees are hired. There is also an opportunity to review the necessity of...