Simulation Review
Simulation Review
Angel Falcione
Mark Williams
January 19, 2015
Simulation Review
Introduction In this paper I will discuss the financial accounting decisions made while participating in the simulation review at The Elijah Heart Center Hospital. According to financial indicators of the simulation, the best choices need to be made in the areas of capital shortage, purchasing new medical equipment, and funding options for capital expansion. I will also include a summary and conclusion that discusses what the simulation has taught me, if I made the best decisions, and how to apply the teachings learned to a future career.
Elijah Heart Center Simulation
According to the simulation, Elijah Heart Center is facing the financial dilemma common in specialized health care organizations. The hospital has a few areas that need to be addressed, such as, reduced income, the need for new medical equipment, and wanting to expand the hospital. Without the needed technology and expansion, there is very little the hospital can do to improve the income situation. The financial situation requires a combination of strategy, forecasting, and a plan on how to reduce costs, while making the best decisions in regards to obtaining expansion and needed technology.
Phase I: Capital Shortage
Elijah Heart Center is experiencing a cash flow problem, to help improve this dilemma, the goal is to save the Hospital $900,000 in the first year. The simulation provided five options for cost cutting at the hospital with only two of the options available to select from, in hopes of the best result. The five options for cost cutting are reducing agency staff, downsizing staff, reducing benefits, changing the skill mix, and reducing length of stay for the patients. The best two options for the hospital to reach their goal in my opinion are, reducing the agency staff and changing the skill mix. Reducing agency staff is a smart choice because it can eliminate contracted salaries which cost a
Angel Falcione
Mark Williams
January 19, 2015
Simulation Review
Introduction In this paper I will discuss the financial accounting decisions made while participating in the simulation review at The Elijah Heart Center Hospital. According to financial indicators of the simulation, the best choices need to be made in the areas of capital shortage, purchasing new medical equipment, and funding options for capital expansion. I will also include a summary and conclusion that discusses what the simulation has taught me, if I made the best decisions, and how to apply the teachings learned to a future career.
Elijah Heart Center Simulation
According to the simulation, Elijah Heart Center is facing the financial dilemma common in specialized health care organizations. The hospital has a few areas that need to be addressed, such as, reduced income, the need for new medical equipment, and wanting to expand the hospital. Without the needed technology and expansion, there is very little the hospital can do to improve the income situation. The financial situation requires a combination of strategy, forecasting, and a plan on how to reduce costs, while making the best decisions in regards to obtaining expansion and needed technology.
Phase I: Capital Shortage
Elijah Heart Center is experiencing a cash flow problem, to help improve this dilemma, the goal is to save the Hospital $900,000 in the first year. The simulation provided five options for cost cutting at the hospital with only two of the options available to select from, in hopes of the best result. The five options for cost cutting are reducing agency staff, downsizing staff, reducing benefits, changing the skill mix, and reducing length of stay for the patients. The best two options for the hospital to reach their goal in my opinion are, reducing the agency staff and changing the skill mix. Reducing agency staff is a smart choice because it can eliminate contracted salaries which cost a