Financial Advice to Improve the Credibility of Elijah Health Center Finance Strategies
Elijah Health Center Finance Strategies
Danielle Claitt
HCS/405
April 13, 2013
Maria Aurora Makalintal-Torio
University of Phoenix The Elijah Heart Center (EHC) is a health care organization that specializes in cardiac care. The facility has equipment suitable to perform a full spectrum of cardiovascular services. EHC provides outpatient services for non-invasive procedures as well as clinical care. However, Elijah Heart Center is suffering from a severe financial deficit that may destroy the credibility of the company. As senior financial advisor strategies of specific measures will address techniques to bridge a working capital shortage, evaluate funding options for acquiring medical equipment, and evaluate funding options for capital expansion.
Phase 1: Capital Shortage The first strategy recommended to solve the cash flow problem at EHC is to “Reduce Agency Staffing.” According to the Revenue and Expenditure Projections this is a respectable cost cutting measure that illustrates how expenses will reduce drastically without a decline in revenue. Also by implementing this strategy EHC saves on expenses paid to staffing agencies and management fees by reducing the number of contract medical and outside personnel. Furthermore, the level of competence of outside agency personnel does not meet the qualifications of the hospital staff, which is constantly engaged in the quality of care. This strategy will present a significant cost in savings for EHC because the expenses of contract staff is almost double that of people who work in the hospital directly. The second strategy recommended to solve the cash flow problem at EHC is to “Change the Skill Mix” by employing “unlicensed assistive personnel.” This strategy is a respectable long-term costs savings. According to the Revenue and Expenditure Projections this recommendation will have a cost increase in the beginning; however, in the following months the revenue will increase significantly. This
Danielle Claitt
HCS/405
April 13, 2013
Maria Aurora Makalintal-Torio
University of Phoenix The Elijah Heart Center (EHC) is a health care organization that specializes in cardiac care. The facility has equipment suitable to perform a full spectrum of cardiovascular services. EHC provides outpatient services for non-invasive procedures as well as clinical care. However, Elijah Heart Center is suffering from a severe financial deficit that may destroy the credibility of the company. As senior financial advisor strategies of specific measures will address techniques to bridge a working capital shortage, evaluate funding options for acquiring medical equipment, and evaluate funding options for capital expansion.
Phase 1: Capital Shortage The first strategy recommended to solve the cash flow problem at EHC is to “Reduce Agency Staffing.” According to the Revenue and Expenditure Projections this is a respectable cost cutting measure that illustrates how expenses will reduce drastically without a decline in revenue. Also by implementing this strategy EHC saves on expenses paid to staffing agencies and management fees by reducing the number of contract medical and outside personnel. Furthermore, the level of competence of outside agency personnel does not meet the qualifications of the hospital staff, which is constantly engaged in the quality of care. This strategy will present a significant cost in savings for EHC because the expenses of contract staff is almost double that of people who work in the hospital directly. The second strategy recommended to solve the cash flow problem at EHC is to “Change the Skill Mix” by employing “unlicensed assistive personnel.” This strategy is a respectable long-term costs savings. According to the Revenue and Expenditure Projections this recommendation will have a cost increase in the beginning; however, in the following months the revenue will increase significantly. This