HCS 405 WK Individual Assignment

HCS 405 WK Individual Assignment

Reducing agency staff, I choose this budget cut because it leaves more positions open for the facilities own staff and this form of help is a high cost, twice as high a regular hospital staff but each open job is continually monitored to determine if that position needs to be filled. Changing the skill mix, this option allows for unlicensed assistive personnel to address economic realities. This cost cutting choice option allows for nurse to be able to delegate minor jobs in order focus on more complicated ones (University of Phoenix, 2013).

Which loan option did you select? Why?
Loan option 1, this loan actually allowed for a longer period of repaying the loan, even if it has 9.45% interest rate, as option 2 does not give you the ability for the three month loan closure and it needs to be repaid in six months’ time. Being that this is a facility which needs flexibility option 1 provides the best possible alternative for achieving substantial financial grounds (University of Phoenix, 2013).

What was the outcome of your decision?

The outcome for my decision was that it was in good health for EFC. The decision to reduce a portion of agency contract staff was good because it decreases outflow of cash through expenses without hurting or decreasing the facilities actual revenue by saving on premiums it pays to staffing agencies and their management fees so it is a huge cost saver. Changing the skill mix made for a good budget saver for Elijah Heart Center because it helps save the company money in the long haul.

There will be an increase in costs in the beginning in regards to the less o hospital training, but overall workers can assist with the registered nurses with simple tasks like, feeding and the moving of patients. Licensed nurses can focus more on the more complicated task such as those directly affecting or related to patient care. As for my loan option it was the best choice for solving the hospital’s capital shortfall because EHC will receive $2,300,000 as payments from Medicare and other managed care organizations within three months. This will undoubtly solve Elijah Heart Center cash flow problem, were as option two could not be prepaid in six months (University of Phoenix, 2013).

Phase II: Funding Options for Equipment Acquisition

Which cost-effective equipment selections did you make? Why? High speed-CT Scanner Refurbished Equipment Loan, this option I felt was best because the technology advancement for this machine is not expected to change much and the cost is high to buy new $750,000 and its life expectancy is around 10 years if brought new.

Therefore buying new can greatly affect the hospital’s finances and getting equipment that is refurbished is much more cost saving with a 30 – 50 percent cheaper sale tag and it decreases staff training costs. X-Ray Machine-Capital Lease, seems to be the best option for this equipment because the likely hood of needing to be upgraded or changed is low and it life expectancy is 15 right around years the cost of this machine is 320,000, so a capital lease just makes more sense than the rest plus this form of leasing allows the company to be able to have the option to purchase the equipment at a bargain purchase option and the; lease itself is transferred at the end of the lease automatically.

& Ultrasound System-Operating Lease, this is the best option for this equipment because this can be a device equipment that can have an technical advancement or change in the long run and using other methods could make purchasing this equipment worthless in the future event of advances in technology so it would be a loss cause or investment to have reflect on the balance sheet or to buy new or refurbished. This form of obtaining the equipment is treated s a rental and is not included on the balance sheet as with a capital lease and there is no bargain purchase option either (University of Phoenix, 2013).

What was the outcome of your decision?
The outcome of my decision was the best possible choices for the company as the high speed CT scanner being refurbished allowed for the equipment to be purchased cheaper than being brought new. As for getting the x-ray machine on a capital lease makes this the best option because higher present value compared to the operating lease or buying refurbished equipment and the business has the option of buying the equipment at a bargain price or taking up a new lease and with the life expectancy of this machine being 15 years with little or low possibility of change it makes for a good investment and means of saving finances in the long run. Last on the list is the ultrasound system getting an operating lease is best suited for the company because it allows for an upgrade. The option of the operating lease helps in taking care of technological obsolescence (University of Phoenix, 2013).

Phase III: Funding Options for Capital Expansion
Which source of funding did you select? Why?
HUD 242 Loan Insurance Program I choose because the hospital can payoff this loan before its time without precautions and it allows the facility to be able to do this after eight years. Although its rate were cheaper than a private bank loan and higher than the tax-exempt and revenue bonds it allowed for a year advantage of loan payoff over tax-exempt, as well as not putting a limit on the period of use for the funds interest rate is lower than both other options setting at a 3.90 percent and tax-exempt is 4.18 percent, and private bank funding is 4.50 percent (University of Phoenix, 2013).

What was the outcome of your selection?
The outcome for my decision was that this funding option was a healthy choice, as well as the best possible option for Elijah Heart Center (EHC). Benefits were that the option was callable after years instead of tens and that if the interest rates were to decrease it would be possible for the organization to buy back the bonds and reissue the debt making it more
profitable for Elijah Heart Center (University of Phoenix, 2013).

Summary and Conclusions

What did you learn from this simulation?
I learned that buy choosing the best options for the business I am able to better provide equipment, workers, and finances for acquiring equipment, expansion and staffing of the facility.

What would you do differently if you performed the simulation again? If I were to reduce this again I would not change anything as the other options badly affected the budget and other mixtures were not good ones they decreased cost but keep dipping as months went by, which would ultimately affect the overall finances for the business thus creating issues such as down-sizing being a reality and or the reduction of benefits to staff and reducing length of stay really does not have an effect on saving or benefiting the company at all.

How will you apply what you learned at your current or future job? I could apply what I have learned at my future job by keeping the result and notes for my simulation as a guide for planning and determining how to spend revenue earned or needed to keep my business operational. As well as being able to suggest possible ways and ideas for saving my current business money were equipment and loans are of use. In my future job/business I plan on running my own CMA/CNA facility this can help me with determining the best loans to get for equipment, supplies, and materials needed to run a fully functioning and profitable business.

I can sue this simulation to decide on the best way to get those supplies, equipment by determining the cost for leasing or buying new or used equipment. I will be allowed to make a more clear and informed decision about my current and future business ventures. Once I get into a medical facility and staff thoughts and decisions are taken into consideration for future changes I will be able to give an realistic suggestion or idea for changes that can affect staff’s jobs, future positions, benefits, and care and treatment of patients.

Reference
University of Phoenix. (2013). Analyzing Financial Indicators for Decision Making [Multimedia]. Retrieved from University of Phoenix, HCS/405 Health Care Financial Accounting website.

Get Assignment Help Services with StudyAcer.

StudyAcer
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work With StudyAcer

StudyAcer

Quality Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

StudyAcer

Qualified Writers

We have hired a team of professional writers experienced in academic and business writing. Most of them are native speakers and PhD holders able to take care of any assignment you need help with.

StudyAcer

Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account.

StudyAcer

Prompt Delivery

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. We will always strive to deliver on time.

StudyAcer

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text.

StudyAcer

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

StudyAcer

Place your order

Fill in the order form and provide all details of your assignment.

StudyAcer

Proceed with the payment

Choose the payment system that suits you most.

StudyAcer

Receive the final file

Once your paper is ready, we will email it to you.

StudyAcer Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

StudyAcer StudyAcer

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

StudyAcer StudyAcer

Admissions

Admission Essays

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

StudyAcer StudyAcer

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

StudyAcer StudyAcer

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied.