Elijah Heart Center is a health care organization that focuses on the cardiac health of their patients. This organization has the technology and a wide variety of cardiovascular service to offer patients & medical care givers. Elijah Heart Center provides outpatient services for patient that require less invasive services and only require clinical services. Due to the organization stable inflow of patients, there has also been an increase with patient inflow, there still remains to be a lack of profits. In this paper you will understand the reasons for the choices of Chief Financial Officer Zachary Macholz with plans to present short and long term accomplishments for the organization finances.
EHC organization has managed to maintain profits in order to remain in operation, because of their good reputation. Beside the organization’s great patient care, certain departments have invested in making poor financial decisions, which are now becoming a hindrance to the organizations profits. In the recent reviews of the organization financial data, the center has given huge discounts to managed care organizations, such as Medicaid/Medicare. When an organization deals with negotiating a set or contracted price for services, the reimbursements for these services are more than likely to be below the organization’s budget standards. The contracted fees set for the reimbursement of the insurance rate where not based on the past medical cost, this could stop the organization from receiving profitable financial growth. The organization’s nursing staff has been compromised, due to the organization paying outside contracted wages, to the agencies that supplied the organization with these particular staff members. More than half of the organization’s liablities have increased, the accounts payables are the main reason for this increase. The EHC will need to replace their old outdated equipment with the latest equipment