In order to realize the benefits of a company, it is important to come up with a model that will reduce the cost of running a business but yield quality products and services in the end. The process of simulation can be very difficult if the system is not properly planned. The aim of such plans is to drive the simulators so that the clients are not underserved. Therefore, the techniques must remain effective. This paper seeks to provide an analysis of the decisions I have made when dealing with issues of cash outlays at Elijah Heart Center.
In running any form of business, the amount of money being invested into the business should not exceed the expected income. This may be in the form of paying the staff, both permanent and temporary workers. I chose to reduce the number of contracted nurses to cut on the premiums that were to be paid to the staffing companies. Some staffing agencies require maintenance fees for providing employees. In addition to this, most of these contracted staffs do not possess as much experience as the ones who are permanently employed in the hospital (Mawby, 2005). This means that they may also lack the necessary skills. In this way, I would be saving. Paying contracted employees has been found to be more expensive than paying those employed directly by the hospital.
Another way of ensuring that the quality of services is not compromised is to hire some unlicensed personnel to assist in other duties within the wards. These untrained staffs may get informal training from the experienced nurses (Thierauf, 1995). They will help in performing simple roles such as moving patients or even availing foodstuffs to them. These tasks can be performed perfectly by unlicensed workers. In this case, the registered nurses will be left with complicated tasks that affect patients directly. If this works well, then I will be able to save in the first quarter already.
According to my assessment, Loan Option One was my best choice to boost the capital at EHC. I also expected some payments from other sources to help in solving this cash flow issue. Although I may have to pay high interest rate of 9.45%, this will enable me to close this loan within a shorter period. Loan Option Two could only be paid in six months. Therefore, the loan Option One would not burden my business.
Funding Options for Equipment Acquisition
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Most hospital equipment is very expensive and requires huge funding. EHC would acquire the X-Ray machine by bargaining its price or taking the machine on lease. This implies that the equipment can be used for several years. In addition, it is cheaper than buying it at a fixed price. On the other hand, the ultrasound system will be acquired on operating lease. This is because it uses technology and may be suitable for only five years (Mawby, 2005). In this case, we would have to pay high costs. However, our system will be up to date in terms of technology.
The hospital would also need CT scanner to perform some diagnostic tests. A refurbished scanner makes the best option for Elijah Heart Center. It is expected to serve for about ten years before it can get upgraded. This it is the most affordable option for the hospital as buying a new machine would require much cash.
Funding Options for Capital Expansion
It is important to maintain sustainability and expand the hospital, as well as consequently there will be a need for more funds. The Loan Insurance program known as HUD 242 is the best option for funding. The program can provide the facility with enough money for its expansion plan. This option has a number of advantages that are extremely important for such businesses. The hospital would be allowed to have its debts financed as grade investment. Within a span of eight years, the bonds become callable. No deadlines are issued by the company (Train, 2003). This is different from the Tax Exempt or even private banks.
Summary and Conclusion
From this simulation, I can deduce that as long as one identifies aims and principles, it becomes easier to save time and money. However, any business requires a committed manager with a good ability to keep records. With clean records, it is possible to evaluate decisions. As an entrepreneur, one has to consider possible challenges and try to find appropriate solutions (Thierauf, 1995). Reducing the number of staffs, especially the contracted ones, will help greatly in reducing the costs. Training workers at the workplace enables them to get the skills and become good assistants. This also creates job opportunities for unregistered staffs. Paying such staff members is cheaper as compared to hiring personnel from staffing agencies.
Even the equipment used by the company can be acquired in different ways. It does not mean that all the instruments have to be bought from the shops. Even second hand products are useful. In some cases, acquiring products on capital lease is the best option. When choosing loan options, a manager has to weigh a number of things such as the interest rate and the amount of money to be awarded.
If I performed this simulation again, I would make sure that I have considered the technological advancement when acquiring equipment so that the hospital was not left behind and managed to keep up the pace of modern trends in healthcare. I would make use of various applications to manage the hospital activities. The doctors would have to document all their advices and plans for their patients. In order to minimize wastage of resources, proper health care information system would be in place.
This experience will be of great help to me in my future planning activities. I would use it to increase the production level of wherever I head in the future. I will ensure that my clients receive quality services to avoid losing customers. In this way, the process of marketing is enhanced and profits are also raised (Train, 2003). With proper financial planning, managers are able to achieve their goals within the shortest time possible. This information can also be shared with other colleagues for further evaluation.