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Simulation Review Hcs/405

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Simulation Review
HCS405
Jan1, 2014

Simulation Review

Introduction:
Elijah hospital provides both cardiac diagnostic services as well as rehabilitation programs. In this simulation, we will evaluate and assess the funding options for obtaining a new or refurbished medical equipment.
Phase 1: By reducing the agency staff, the organization will be saving a lot of money. The other cutting option, that I selected, was hiring unlicensed staff.
The second option for phase I is based on loan. The monthly payment period is over in twelve months with no prepayment limitation that is an excellent deal. Taking the first loan will help the hospital close the loan within three months, as compared to the second loan option which could take six months to prepay.
Phase II: Choosing refurbished machines will be a good option and will save the hospital almost 50 percent of the cost price as compared to a new one. I realized that it might be best to go with this. I selected the operating loan because it has a lower upfront payment and lower monthly installments. Leasing allows businesses to address the problem of obsolescence. Therefore, when the technology advances and the machine turn out outdated the terms of the loan would allow the machine to be replaced with a new updated model.
Phase III:
Tax Exempt Revenue Bonds is not the best choice, for it has a usable time set of three years as well as an escrow against gross revenue. I chose HUD 242 loan because it has the lowest interest rate of 3.9% with eight years of repayment installment.
Summary
I learned the importance of leasing or buying a new or refurbished medical equipment. Many options were available, and the type of the machine also needed to be considered before making a decision. For the loan process, I have learned to research the options before making decisions on any loan. I will attempt…...

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