Posted: July 7th, 2022

EMS Fiscal Fiasco

 2 pages full word Due on Wednesday 

Don't use plagiarized sources. Get Your Custom Essay on
EMS Fiscal Fiasco
Just from $13/Page
Order Essay

its an EMS class

here the instruction :

You are the Executive Director of MetroStar Ambulance (MSA) and you have recently worked up your Revenues and Expenses projections for the next five years, based on the new Federal Regulations on reimbursement schedules. You manage 76 paramedics and 32 EMTs. At last night’s Board Meeting, the Chief Financial Officer (CFO) made dire predictions about the fiscal status of the organization. She predicted a 5% net loss to the operating budget of MSA for the next Fiscal Year (July 1, 2014, to June 30, 2015). She said that the organization should be able to meet the budget projections for the next Fiscal Year. Her projections are for a budget deficit of 4% in FY 2015-2016, if the current projections remain unchanged. She advised the Board that the organization should be prepared to file for Chapter 13 “Bankruptcy” in FY 2018 if corrective actions are not taken. She recommended starting immediately by planning on reducing budgeted expenses during the next 2014-2015 fiscal year.

The Board of Directors has charged you, as Chief Executive Officer (CEO), to take the necessary actions, make the necessary financial adjustments, and recommend any major strategic approaches that are necessary to meet the new fiscal realities. The current “pretend sample” MSA fiscal budget is attached herePreview the documentView in a new window.***(its the downloaded file)*** 

After you pull out your projected budget for next year and review it, you begin to form strategies for how you will address the fiscal challenges that MSA is facing. Here are some of the strategies that you might consider: 

  1. Cut the golf country club membership (just for you, as CEO) ~ $2500 per year (buried in the “perks”)
  2. Cut travel expenses (buried in “perks”); these amount to ~ $8,000 per year (sends managers, training officers, and providers to conferences each year)
  3. The budget for vehicles and equipment is $750,000; 
    1. MSA purchases one vehicle per year, on average (~$100,000)
    2. Older vehicles involve higher maintenance costs
    3. Any delay of a vehicle purchase will only result in a modest savings for one year (~ $75,000) while increasing the cost with an additional vehicular purchase in the next, or subsequent years, along with the higher maintenance expenses
    4. The Building lease ($180,000 per year) cannot be changed for five years
  4. Personnel costs (Salaries, Fringe Benefits, and Perks (travel expenses, conference registration fees, holiday gifts and occasional celebratory activities, such as the annual picnic etc) are the largest part of the budget
  5. Overtime is currently ~12% of compensation for paramedics and EMTs
  6. Office staff costs ~ $187,500 per year for three employees (Do you need an Office Manager, an Administrative Support (Secretary-Receptionist) and a Billing Clerk?
  7. The health plan costs are going up by about 15% this year, an increase of more than $500 per employee ( ~ $60,000) 

 

Your assignment:

What actions do you take immediately? What fiscal strategies do you propose to your Board of Directors? How do you communicate this situation to all the staff (management, clerical, and field responders)?

 

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Live Chat 1 7633094299EmailWhatsApp

Order your essay today and save 20% with the discount code WELCOME