industry
Healthcare & Life Sciences

An RCM provider needs to diagnose client profitability issues​

Key results:
  • Determined paths to identify profitability
  • Built staffing and pricing model​​​​​​​​​
Value levers pulled:
  • Integrated profitability analytics
  • Value creation measurement
  • Finance function assessment and design​​

Picture this...

You’re a a leading provider of tech-enabled revenue cycle management (RCM) services to hospitals and health systems serving over 30 clients through 220+ facilities. You do over $580M in sales and $160m in PF EBITDA, but you lack complete visibility into your profitability and cash due to a sub-standard cost allocation methodology.

You turn to Accordion.

We perform an assessment of various cost allocation options so you can produce client level income statements. To achieve that, we:

  • Hold process walkthroughs and interviews with key stakeholders in the front-, middle- and back-end of the RCM functions.
  • Conduct analysis of key cost drivers (i.e., direct labor, SG&A, vendor costs) and assist with client staffing, pricing. and tracking mechanisms.
  • Analyze sample client SOWs, KPIs, and productivity reports.
  • Lead an in-depth assessment of supporting technologies.

Your value is enhanced.

You now have insight into profitability and margins as a result of a new client staffing and pricing model utilizing volume metrics, industry benchmarks, and client-specific complexities. You learn that system-based activity tracking will provide the organization with greater profit potential given the work log features and workbench reporting. However, you also now understand that implementation requirements are too burdensome and costly in the short-term, so you develop a phased implementation for new allocation methods that provides the right balance of near-term cost and long-term profitability.

Enhanced value:

You reap multiple benefits, including:

  • Determined paths to identify profitability
  • Built staffing and pricing model​​​​​​​​​​