Simulation Review
Carita Nelson
August 21 2014
HCS 405
Joe Gazdik

In the simulation I chose to cut cost by choosing to reduce agency staff and to change the skill mix to help save on annual savings. By reducing agency staff, monies will be saved due to not having to pay such high pay for the service. Although it may cause employee to double up on some of their task and duties it is worth it in the long run in saving the hospital money. Also changing the skill mix will also reduce some of the cost by having assistant personnel to assist in some of the lesser task and allow nurses to concentrate on more serious task for the quality of patients.
When it comes down to the loan option, I chose option 1 at the rate of $1,500,000 and an interest rate of 9.45%. The monthly installment will be $131,490 for the term of twelve months with no prepayment limitations. There will be sufficient revenue coming in within the next three month to cover the cash flow issue. This will happen by receiving payments from patients Medicare and managed care insurance companies. Opting to go with the higher interest rate will allow the hospital to not have a limit on how long it take to pay back. With the lesser interest rate the loan would have had to be paid back within a six month time span which would have been impossible for the hospital to manage.
With buying the more advanced equipment it helped to increase patient volume which also increases the revenue for the hospital. The new equipment will allow for better treatment due to having more advanced technology that can better diagnosis issues with our patients. We have to make the best decision whether to acquire new loans, purchase refurbished equipment or to lease the equipment through a capital lease or operating lease. I chose to buy a refurbished scanner because it should still be use worthy and have more use. With this equipment being used it should come at a cheaper price but give the hospital the edge it needs to better service our