'Elijah Heart Center\r'

'I ordain converse the high hat options for the healthcare m any; this al measly admit evaluating funding options for capital expansion, what the best option would be when it comes to upgrading the hospitals equipment, and how bridging a working capital shortage go out help to turn financial matters around. Phase l: Capital Shortages In 1998 †1999 New York, the hospitals lost on an average $678 million due to Medicare cuts that were imposed by the Balanced Bud nurture of 1997.It was difficult for managed care organizations to stimulate the adept nonplusments on managed care plans. I am assisting EACH in the best way assertable to reach $750,000 for the first quarter. The simulation offered two options to spot from in order to receive the best bring to cover the remaining famine for Elijah Heart amount of bills (EACH). I chose Loan option 1, it searched to make more(prenominal)(prenominal) sense, and according to the simulation option 1 was the best to choo se from to solve the working capital shortfall at EACH. In 3 months EACH will be receiving from Medicare and Managed Care Organizations to assist in salutary-natured the cash flow step forward.EACH will have to pay a higher rate interest at 9. 45% plainly there is no quittance limitation. Loan option 2 had to be pay within six months (impossible with come forward going further in debt). I to a fault suggested that reducing a nifty amount of agency assure rung would be beneficial for Elijah Heart Center as sanitary, because the contracted workers receive much higher wages than those of the staff. The full †time staff at the care center has been there a long time and have established a unhurried worker relationship, the staff truly care for the patients whereas, the agency come and go.When this is implemented there will be a bulky change in the â€Å"Revenue and Expenditure Projections”, and all will notice this is the most effective circular in reducing cost. I also chose changing the skill mix (first time I had hear of this), this will increase the â€Å"Revenue and Expenditure projections” in the beginning and the future months. It is a good finding to hire unlicensed assisted personnel; they may have 40 or less hospital training but they can help out by doing such work as the Stanzas (feed, bathe, and cut back the patient), and theRegistered Nurses can focus fully on his or her Job duties and the patient will receive capture care. By making these decisions EACH will not only save $811,249 but they would have exceeded their coating by the first quarter. The capital shortfall issue has been solved for EACH and it also is increasing. Phase II: mount Options for Equipment Acquisition CEO Gilbert Sanchez is kindle in acquiring hospital equipment such as a High- Speed CT digital scanner, X-Ray Machine, and a new ultrasonography System. Mr.. Sanchez wants the best for the patients as well as the staff; having updated equipm ent will reduce tress, and patient wait times.The most cost effective equipment science strategy would be to leveraging wisely, meaning lay out the best for your dollar. I liked the idea of buy refurbished medical equipment. The best option would be to purchase a refurbished High-Speed CT Scanner, do operational let on the Ultrasound, and a capital lease on the X-Ray Machine. The High-Speed CT Scanner seems to be the smartest buy because it is the cheapest of the three, and the life span is near 10 days, and it is medium technology that can buzz off obsolescent in years, it is already 5 years old, this equipment can be upgraded.Elijah Heart Center also wants to keep up with the latest technology, and in doing the Ultrasound System would be the best option for this reason, but we would need to acquire an operating lease for the low upfront payments and low monthly payments. It does cost more to keep up with the Joneses. Phase Ill: Funding Options for Capital Expansion HAD 24 2 Loan Insurance course of instruction is the best choice for the expansion of Shes project; this schedule provides mortgage insurance for hospitals. According to Rural financial aid Center (2002 †2014), â€Å"The maximum term on the give is 25 years, loan to value may not exceed 90%, a one-time fee of 0. 8%, the fixed yearly premium is 0. 5% of the remaining balance and the FAA insures 99% of the loan amount” (HAD Section 242: Hospital owe Insurance Program). This insurance can be utilise for remodeling, construction, refinancing, equipment and what EACH needs expansion. Hospitals are able to pay as an investment grade, and the hospital will get the lowest rate possible when it comes to borrowing property in capital markets.The rejects Net Present rate (NP) is $221 million thru this program. In 8 years the hospital can buy back the bonds if interest range were to decrease. In conclusion, I learned that when making money matter decisions it is best to look at a ll every option possible; what may seem like a good option at the time may not be good for me in the long run. Elijah Heart Center will have a promising future as long as they follow the options and strategies given. References Rural Assistance Center. (2002 †2014). Rural Assistance Center. Retrieved from http:// www. Reconcile. Org/funding/95.\r\n'