Financial planning is an ongoing process that reduces stress about money, supports your current needs, and builds a reserve for future investment, including your retirement. Creating a roadmap with specific goals is paramount to develop and execute a strategic financial plan. Scenario planning to overcome foreseeable challenges is a must. Our experiences provide us the expertise to develop a solid financial plan in partnership with our clients. Components of our services include:
Capitalization – Organizations must have a strategy to fund specific initiatives. Those initiatives may include, but not be limited to purchasing real estate, funding liquidity needs, creating a new business line, buying out a partner/shareholder, or purchasing new capital equipment. Creating a roadmap for capital requirements requires an analytic approach and a deep understanding of the financial performance of the organization. The roadmap can then be used to access a network of sources (e.g., traditional financing, private equity, venture capital) to secure the necessary funding.
Debt & Equity Financing – Navigating the financing world, whether accessing traditional business lending resources or working with a venture capitalist can be a daunting task. Each option has distinct advantages and drawbacks. Furthermore, the basis can vary based on the capital need. For example, raising capital to support the creation of a 50,000 square foot facility is very different than buying imaging equipment for a radiology suite. Understanding the nuances requires in depth knowledge and experience working with different financing strategies.
Financial Analysis
- Projections for New Business Opportunities – Strong financial projections based on sound assumptions allow organizations to make informed decision and to build the management process required to successfully execute the best of ideas and measure performance.
- Return on Investment (ROI) – ROI analysis is critical to determining how best to deploy capital and understand the cost of capital versus an internal rate of return. A disciplined approach to ROI will assist in determine the best option when faced with multiple opportunities to spend capital.
- Revenue Cycle Performance – The front- and back-end process associated with billing for services and collecting revenue requires sound revenue cycle management principles and a prescriptive dashboard monitoring process to ensure optimal performance.
- Bench-marking (revenue, expenses, infrastructure, outcomes) – Comparative exercises are valuable for organizations to understand performance levels and expectations in relation to peer organizations to ensure the desired outcomes are achieved in an efficient, effective manner.
- Sourcing Capital Alternatives – Carefully weighing the terms associated with accessing and cost of capital requires detailed analytics to determining the best option.
Compensation Plan Design/Redesign – Compensation can take many forms, from the ownership level to the employment level. Furthermore, organizations owned by or that employ physicians must comply with specific regulations to avoid anti-kickback and referral penalties. Ultimately, compensation drives behavior. Creating the correct incentives that align behaviors with desired outcomes is a sought-after skill set. A balance must be struck between how care is funded and creating appropriate incentives that align with organizational goals.
Our experience combined with your vision will drive the right choices for you and your organization!