An organization's ability to create value and achieve targeted revenue growth depends on the reliability of and ability to consistently predict and validate revenue while avoiding unforeseen material adjustments.
Healthcare organizations turn to
Sophisticated Analytics
Our approach harnesses clients' data to provide the visibility needed to measure performance at levels optimized for their business.
Customization
Our models are highly adaptable to reporting at consolidated levels or detailed levels broken down by regions, business lines, payors and more.
Defined Processes
No analytics tool is enough on its own. We transfer user knowledge and help create the processes and structures for leveraging the tool and acting on its results.
Defensible Output
Working closely with Big Four audit firms to validate our methodology has helped ensure successful compliance audits for our clients.
Efficient Improvements
Our tools are 80% pre-built, allowing us to focus our time on quickly tailoring models to clients' specific data inputs and analytical needs.
Access to Experts
Clients have access to a "one-stop shop" of industry experts and past operators to support operational implementation, clinical documentation and coding compliance, and when necessary interim and bridge management. Because of the depth and breadth of
About the Model
Modeling the Income Statement
Our tools measure gross and net revenue against actual and expected cash collections over time.
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Driven by detailed cash collection "waterfall" analyses conveying timing trends in collections performance
- Subsequent cash receipts estimates based on historical performance
- Intuitive insight into contractual allowances, and bad debt expense provisions booked against revenue
- Captured at customizable levels of detail and on consolidated basis
- Tracks net effect of payments, refunds, credits, and other adjustments
- Uses analysis that covers, as available, monthly, quarterly, and multiyear periods
- Leverages collections waterfalls to estimate A/R reserve percentages using payer, age, service line, or other groupings that contain similar reimbursement and collectability characteristics
- Validates the overall health and collectability of A/R under various dimensions and scenarios
- Aligns cash collections analyses by the healthcare industry best practice of payer classification, bringing the model in line with ASC 606 requirements and generating insights of payer dynamics and performance
ASC 606 is the new revenue recognition standard that affects all businesses that enter into contracts with customers to transfer goods or services - public, private and non-profit entities. Both public and privately held companies should be ASC 606 compliant now based on the 2017 and 2018 deadlines. - Accompanied by detailed process and functionality documentation outlining the key personnel and steps involved in generating and interpreting insights
- Systematic, replicable, and scalable, with minimal input touchpoints
Modeling the Balance Sheet
Our tools assess the accounts receivable (A/R) reserve based on collections history.
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Measures collections against historical A/R balances on a regular periodic basis to inform potential changes in the valuation of balance sheet A/R
Key Features of Model
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Based on industry standard methodologies, views revenue recognition performance through both the lens of the income statement and balance sheet
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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