Elijah Heart Center

Elijah Heart Center Alternate Working Capital Policy

Seapa Stovall

January 22, 2012

FIN/HC 571

Douglas McFadden

Elijah Heart Center Alternate Working Capital Policy

Elijah Heart Center (EHC) is a 140-bed specialty cardiac care hospital based in New York and services range from open-heart surgery, radiology, nephrology, pulmonary, and other services for cardiovascular patients (University of Phoenix, 2011). The hospital’s chief executive officer, Gilbert Sanchez along with his executive team, Saika Takuchi, Zachary Macholz, and Dr. Brenda Lopez have requested my expertise in creating a new alternative working capital policy to reduce future difficulties and continue sustainability. From my observation EHC’s financial problems include creating alternate sources to short-term financing, finding the proper funding source for equipment acquisitions, and selecting the best funding source for capital expansion. My consultation will provide a framework to keep EHC sustainable and adjust for risk. To evaluate success measures I will include my recommendation of tools necessary to evaluate the organizations performance.

Capital Shortage

In reviewing the finance department analyzes there are two main threats to EHC’s ability to sustain as an organization. Because of the acute nursing shortage EHC must higher an outside nursing agency, which results in higher wages paid out putting a drain on EHC’s financial budget, and reserve. The second threat, are the discounts given to managed care companies, along with low reimbursement rates from Medicare and managed care carriers. EHC vision to provide quality patient care is the organizations priority goal and vision. My implementation of cost cutting measures will continue to provide quality service to patients and help increase revenue. My recommendation to help cut cost will start with reducing agency staff and changing the skill mix of unlicensed professionals. EHC has a number of nursing professionals,...