Simulation Review


What was the working capital shortage presented in the simulation?

The working capital shortage presented in this simulation of EHC addresses the issue that may arise should the facility fall into an emergency as it may not have enough cash to sustain itself. These shortfalls can be seen through the significant discounts allotted to managed care companies, as well as higher wages for contract nurses, to compensate for the nursing shortage within acute care. There is also a substantial growth in the liabilities this hospital has taken on, so much so it has surpassed the amount of assets. Even unbilled costs of equipment not in use pose a threat to the financial stability within this facility. By using appropriate cost-cutting methods and deciding on appropriate loan strategies EHC cane overcome this financial hurdle.


The University of Phoenix. (n.d.). SIMULATIONS: Analyzing Financial Indicators for Decision-making [Computer Software]. Retrieved from University of Phoenix, Simulation, HCS405 website.