Simulation Review: Hcs/405
Simulation Review
Janette E. Guevara
HCS/405
August 26, 2013
Todd Brown
Simulation Review I have been brought in as a financial advisor to assist Mr. Gilbert Sanchez, CEO at Elijah Heart Hospital (EHC) to find some cost efficient ways to continue to provide quality care but at the same time reduce costs for the organization. EHC is a hospital that specializes in Cardiac surgeries and procedures. They would like to expand and have a promising growth in patients as well as revenue, but with the decrease in reimbursements from their primary sources of revenue, new strategies to save money are a much needed organization-wide goal. Mr. Sanchez has enlisted the help of my firm, Huber & Guizot to help find a good financial plan and implement it over the next 24 months. I will enlist the help of Dr. Brenda Lopez, Saika Takeuchi-Vice president, and Zachary Macholz-Chief Financial Officer. They will consult with me in what decisions are the best for the organization and I will be able to better understand what their goals are. We have decided to break this project up into three phases for easier planning and implementation. In the first phase I will address cost-cutting. Our goal is to cut-costs in the first quarter by $750,000. The cost cutting options I have chosen for EHC are, reducing agency staff and changing the skill mix within the organization. These two cost-cutting strategies had the least effect on patient care and saved the organization more money over a longer period of time. Having agency personnel is twice the price of having hospital staff. Also, Hospital nurses have more knowledge of the patients and give better patient care because of the familiarity. Agency personnel can be different every few days and therefore can never really get accustomed to the organizations goals and the level of patient care that the organization wants to provide. The second cost-cutting option I chose was to change the skill mix of employees. This simply means we
Janette E. Guevara
HCS/405
August 26, 2013
Todd Brown
Simulation Review I have been brought in as a financial advisor to assist Mr. Gilbert Sanchez, CEO at Elijah Heart Hospital (EHC) to find some cost efficient ways to continue to provide quality care but at the same time reduce costs for the organization. EHC is a hospital that specializes in Cardiac surgeries and procedures. They would like to expand and have a promising growth in patients as well as revenue, but with the decrease in reimbursements from their primary sources of revenue, new strategies to save money are a much needed organization-wide goal. Mr. Sanchez has enlisted the help of my firm, Huber & Guizot to help find a good financial plan and implement it over the next 24 months. I will enlist the help of Dr. Brenda Lopez, Saika Takeuchi-Vice president, and Zachary Macholz-Chief Financial Officer. They will consult with me in what decisions are the best for the organization and I will be able to better understand what their goals are. We have decided to break this project up into three phases for easier planning and implementation. In the first phase I will address cost-cutting. Our goal is to cut-costs in the first quarter by $750,000. The cost cutting options I have chosen for EHC are, reducing agency staff and changing the skill mix within the organization. These two cost-cutting strategies had the least effect on patient care and saved the organization more money over a longer period of time. Having agency personnel is twice the price of having hospital staff. Also, Hospital nurses have more knowledge of the patients and give better patient care because of the familiarity. Agency personnel can be different every few days and therefore can never really get accustomed to the organizations goals and the level of patient care that the organization wants to provide. The second cost-cutting option I chose was to change the skill mix of employees. This simply means we