Specialist Medical Groups

Private Equity (PE) investment radically changes your accounting needs. Here’s why:

PE firms tend to use a “platform and add-on” approach to their mergers and acquisitions. It’s simple. They purchase an established practice and use it as their primary platform. Then they add smaller practices to the primary to increase their market share.

They don’t want the process to be hard work. So, it’s strongly recommended that practices that want to join the chain ensure they are EBITDA-ready. You must supply standardized financial statements that track EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) accurately.

It sounds tricky enough, but then you will have to change from cash-basis accounting to accrual-basis accounting. Your financial reporting requirements also change, as you’ll have to adhere to institutional-level standards.

Remember, you are not on your own. We help you adapt your financial and accounting management software to meet these new, rigorous standards.

Meanwhile, your outsourced team of bookkeepers, controllers, and CFOs ensure you have what you need to provide the real-time data that enables investors to visualize value and ROI.

Yes, you can. Specialist medical groups often have several clinicians, each specializing in different fields or specializing to different degrees. This means different fees, operating costs, and billing models. Separating them to track their profitability is the only way to measure their contribution to the group’s bottom line.

Our industry-specific specialists tailor your financial software so you can analyze financial data by dimensions, including physician, location, and treatment type. Tracking data at this level identifies top performers and is useful when it comes to allocating group resources, optimizing operations, and improving overall patient care.

For example, you might free up profitable clinicians to focus more on complex, high-revenue cases by delegating certain basic health checks to nursing staff. It’s one of the most effective ways for your financial team to maximize efficiency and resources (your specialist’s time) to increase your margins.

One of the biggest challenges we see multi-office groups struggle with is maintaining consistency in financial reporting. Consistency is actually very important because it improves visibility across the group, makes data sharing easier, and prevents revenue leakage.

We use robust, yet flexible accounting software, like Sage Intacct, to develop systems that seamlessly aggregate financial data across all entities.

The most significant benefit is the creation of a centralized reporting structure that provides a consolidated view of your entire business instantly, complete with real-time updates.

Automation takes care of intercompany transactions and eliminations, so your team of medical accounting specialists can provide leadership with clear insight into the financial health of every location, from state to global offices.

Yes, it definitely does. Integration is one of our areas of expertise. In fact, we have integration specialists who link your accounting software to Electronic Medical Records (EMRs) and billing systems, carving a path for fluid financial workflow.

The beauty of these integrated software systems is that they eliminate manual data entry, which reduces duplication and human error, and keeps billing and financial data flowing smoothly.

We also link non-financial-related data, like clinical activity, to financial reporting, which provides even deeper insights into revenue and performance. Bookkeepers and controllers ensure this process works its magic to speed up month-end close processes.

If you want even more benefits, consider that integration excels at identifying bottlenecks in revenue cycles and improving cash flow, keeping your business in business.

You can’t do a thing about inflation, but you can control costs by effectively managing overheads and admin expenses. Tracking key expense benchmarks is essential to the process, as it ensures staffing costs align with earnings.

We tailor your financial software system to provide real-time visibility into spend against budgets, which quickly identifies inefficiencies. You can monitor staffing mix and align schedules with demand.

This is pretty important, so it’s a good idea to collaborate with experts in medical accounting if you want to protect your EBITDA and maximize cost-saving opportunities without compromising patient care.