Hcs/405 Week 4 Simulation Review

502 Words3 Pages
Simulation Review/Elijah Heart Center Sandi Cerutti HCS/405 Healthcare Financial Accounting May 4, 2015 Thomas Brew In society today as stated by Leventhal (2013), the healthcare industry accounts for more than one in every 10 jobs in America. The life expectancy of males and females according to Copeland, (2014), has increased from 0.1 years from 2.5 years in 2011 to 2.6 years in 2012 per government reports. The growth of the healthcare industry will cause many hospitals to search to increase the services they already have to accommodate the growing population. Many financial decisions will need to be made on how to accomplish securing loans needed for new equipment and improving existing staffing issues. The following paper with the help of the ”Analyzing Financial Indicators for Decision Making”, will help show us the way through a very hard financial decision for the Elijah Heart Center. Phase I: Capital Shortage In phase one capital shortage we needed to found two appropriate cost cutting measures. The first one I selected was reducing agency staff and replacing their positions with our own staff. By doing this we would be cutting employee wage cost significantly because agency staff receives a higher hourly pay then our personal staff. In house staff will be trained which will cost the organization extra money but in the long run the savings will be worth it. Having outside agency workers sometimes causes more in-house issues because they are not as trained as our in-house workers. In house staff is more likely to step out of the box to help the organization give a better quality of care for the patients. The second cost cutting measure that I picked was skill mix. Having different levels of skilled and unskilled employees will free up our professions from doing duties that less skilled staff are able to do. Our skilled staff will have
Open Document