Health Care Financial Accounting
Simulation Review Paper By Johnna HCS/405 Health Care Financial Accounting Instructor: Donna Pearson
“Concern about the growth of healthcare a cost is widespread and continuing increases in hospital cost per day are a significant component of this concern” (2009). In this paper it shows an example of how healthcare cost is constantly increasing and what the hospitals have to do to keep up with the increase of costs. This paper is a simulation paper that analyzes financial indicators for decision making. In this simulation the financial accounting from a Cardiac Care Hospital’s Perspective had to bridge a working capital shortage, evaluate funding options for acquiring medical equipment, and evaluate funding options for capital expansions.
In phase one simulation, I was to decide on what cost-cutting option to choose from that would solve the cash flow at Elijah Heart Center (EHC). In addition to choosing a loan option that will cover any capital shortfall that would occur. Once these choices were made, I then had to explain why I chose the options and what were there outcome.
The choices that I decided to go within cost-cutting were Reducing Proportion of Agency Contracted Staff and Changing the Skill Mix. I chose these two because in the Revenue and Expenditure Projections it showed that the costs would go down without acquiring significant changes in the revenue. Also Saika Takeuchi recommendation that choosing these two choices would cut cost in a major way and it would also make the revenue increase if the EHC change the percentages.
The other choice that I had to choose from was which loan option was a better fit for EHC. I chose option one with a three months loan repays because the loan will help EHC for the three months that the facility is short on funds. In three months Medicare and other managed care companies will pay the facility $2, 300,000 for their services, which will solve the current
“Concern about the growth of healthcare a cost is widespread and continuing increases in hospital cost per day are a significant component of this concern” (2009). In this paper it shows an example of how healthcare cost is constantly increasing and what the hospitals have to do to keep up with the increase of costs. This paper is a simulation paper that analyzes financial indicators for decision making. In this simulation the financial accounting from a Cardiac Care Hospital’s Perspective had to bridge a working capital shortage, evaluate funding options for acquiring medical equipment, and evaluate funding options for capital expansions.
In phase one simulation, I was to decide on what cost-cutting option to choose from that would solve the cash flow at Elijah Heart Center (EHC). In addition to choosing a loan option that will cover any capital shortfall that would occur. Once these choices were made, I then had to explain why I chose the options and what were there outcome.
The choices that I decided to go within cost-cutting were Reducing Proportion of Agency Contracted Staff and Changing the Skill Mix. I chose these two because in the Revenue and Expenditure Projections it showed that the costs would go down without acquiring significant changes in the revenue. Also Saika Takeuchi recommendation that choosing these two choices would cut cost in a major way and it would also make the revenue increase if the EHC change the percentages.
The other choice that I had to choose from was which loan option was a better fit for EHC. I chose option one with a three months loan repays because the loan will help EHC for the three months that the facility is short on funds. In three months Medicare and other managed care companies will pay the facility $2, 300,000 for their services, which will solve the current