Healthcare: Improving Financial Reporting Across Multiple Locations
- Net profit margin improvement
- 5% → 12%Net profit margin improvement
- Patient appointment arrival rate
- 82% → 93% Patient appointment arrival rate
- Days in accounts receivable
- 60 → 35Days in accounts receivable
The Business Challenge
The $15 million healthcare organization needed a more consistent view of financial performance across its locations. Differences in reporting practices made it difficult to compare revenue, staffing costs, overhead, and profitability. Leadership needed clearer monthly reporting and a better connection between financial results and operating activity to identify issues and guide decisions.
The Recommended Approach
Standardized month-end close responsibilities and reporting definitions to give leadership a consistent view of financial performance across locations. Connected revenue, staffing costs, overhead, and service volume in management dashboards. Compared results across locations and reporting periods to identify cost pressures, explain margin differences, and direct attention to areas needing further review.
Financial Impact
More timely reporting, clearer visibility into location profitability, and better-informed staffing and spending decisions. Consistent financial information helped leadership identify performance differences and prioritize operational improvements.
Steps in the Approach
- 01Standardized month-end reporting: Clarified close responsibilities, reporting deadlines, and review procedures to improve consistency across locations.
- 02Aligned financial definitions: Established consistent revenue and expense classifications to make location results easier to compare.
- 03Connected financial and operating data: Brought revenue, staffing costs, overhead, and service volume together to provide context for location performance.
- 04Analyzed performance variances: Reviewed changes across locations and reporting periods to identify cost pressures and explain differences in profitability.
- 05Improved staffing-cost visibility: Evaluated staffing expenses relative to service volume and operating needs to support management review.
- 06Established management dashboards: Presented location results and significant exceptions in a consistent format to help leadership prioritize follow-up actions.