Simulation Review

In: Social Issues

Submitted By chinalulu
Words 1117
Pages 5
Simulation Review
Carmela Peterkin-Wilson
HCS 405
10/15/2013
Lawrence Anderson

Simulation Review
In this paper I will talk about a simulation review I completed on the financial hardships of Elijah Hearth Center (ECH), a one hundred and forty bed cardiac care inpatient hospital as well as outpatient and rehabilitation services located in New York City. Even though the center’s revenue is increasing as well as ratio of new patients they are not seeing the profits increase at the same level. Because of their low profit margin the center is looking to save $750,000 in the first quarter for a few projects that they feel will help raise their profit margin; They have indicated three areas to work on, phase I is to bridge a working capital shortage to have more operating cash on hand, phase II is to evaluate funding options for the acquisition of additional medical equipment to better serve their patients and phase III is to evaluate several options for additional funding for the expansion of building a new center to house an extra one hundred rooms to efficiently accommodate new patients.
Phase I: Capital Shortage
The two cost cutting option I choose were to reduce agency staff because I saw that the salary they were paid was double the salary of the hospital staff and patient care would be very slightly affected by this reduction which was another reason I felt that this cost cutting option was a good choice for the center, patient satisfaction is very important for the success of a hospital, by reducing agency staff the center would save $2,043,683 annually. The second cost cutting option I decided on was changing the skill mix and hiring unlicensed staff that requires less professional training than licensed nurses but can perform simple patient related assignments with limited supervision and the license nurses would have more time to take care their…...

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