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Case Study

Driving Budgeting & 13-Week Cash Flow Forecasting

Team Size
1 Managing Director, 1 Vice President
Project Duration
4 months

The Situation

The leading provider of multi-specialty orthopedic and neurosurgery services in Westchester and Connecticut received a growth equity investment from a leading middle-market private equity fund. The Company needed support driving the 2020 annual budgeting process, conducting operational analytics, and developing a rolling 13-week cash flow forecast. Accordion was selected to advise and support the budgeting/forecasting processes and provide actionable insight into the business by leveraging data from the operationally focused applications and providing thoughtful analytics to enable critical decision making.


13-Week Cash Flow Forecasting

Budgeting & Forecasting Process Improvement

Big Data Analytics

The Execution

  • Worked side-by-side with the Sponsor and the Company, analyzing historical trends to help develop detailed schedules that enable requisite visibility for granular budgeting process:
    • Built a detailed revenue, differentiating the MSO and ASC (e.g., volume and rate by visit type, by provider, by location, etc.).
    • Created detailed expense schedules including physician compensation, extender compensation, etc.
    • Remapped GL codes from legacy GL system to recently implemented GL system.
  • Developed a 13-week cash flow model and by utilizing an OLAP database, created an automated update process whereby daily volume, rate, and cash conversion metrics (DSO and collections as a % of charges) – all at the provider level – are enabled to drive model in an automated fashion:
    • Reviewed check runs and procurement processes and bucketed vendors into tiers to create a schedule for forecasting float.
    • Tied inventory spend and timing of procurement thereof to forecasted volume and payment terms of each vendor (Net 30/45/60).
  • Conducted a detailed analysis of the extender program in order to isolate the benefit of the extender program vis-à-vis the change in physician compensation (salary plus bonus converting to base plus percentage of collections).
  • Generated incremental analytics to understand operational drivers of the business.