Simlation Revew

In: Other Topics

Submitted By kayespotz
Words 1048
Pages 5
Kaye Spotz
HCS 405
June 18, 2012
Diana Schilling
Simulation Review
Simulation Review The object of the simulation review is to explore ways to bridge a working capital shortage, evaluate funding options for acquiring medical equipment, and evaluate funding options for capital expansion. These are common problems that face all businesses at one time or another and making the correct decisions determines which direction a business goes in prosperity or demise.
PHASE I The cost cutting actions that I chose are reducing agency staff and changing the skill mix. When a business hires employees through an agency there are many added expenses that are paid, in some instances this is necessary for licenses positions; however, there are many duties that are performed by a nurse that could just as easily be performed by a nursing assistant, medical assistant, or another staff member. By being able to hire less qualified people to help out with the non essential duties of a nurse that would allow you to have fewer nurses on staff and the nurses you have would be performing duties that require their certification/license. I also chose loan option one because with the prospect of a large sum of money coming from Medicare this option offers no prepayment limit. Even though the interest is a little higher with this option, if it is paid off within three months rather than having to wait the six months with option two there is a great deal of money that can be saved there as well. According to the simulation there is a saving of $811,249 with these choices.
PHASE II The equipment selections that I made were to purchase a refurbished high-speed CT scanner via equipment loan. This equipment is stabilized and advances are not coming quickly therefore the lifetime of the machine is well worth the purchase. Also, new equipment is about the same technology wise as…...

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