Practus’ finance and accounting services assisted the hospital in improving the F&A workforce cost to revenue from 3.1% to 2.6% over 12 months and reducing time spent on transactions processing from 55% to 42%.
|Client Name||ROI||Industry||Ownership||Management||No. of Employees||Size||Project Duration|
|Asclepins||6.9||Healthcare||Private||Doctor Owned-Managed||~1000||~$50 million||2 months|
About The Company
Asclepins, a multi-specialty hospital run by doctors, has ~1,000 beds under their supervision. Asclepins was purchased by a mid-cap private equity fund. The Asclepins Board tasked Practus with assessing the hospital’s finance team’s competence to enable the business to scale up before beginning on its expansion strategy.
- The F&A team’s “As-Is” roles, time allocation to tasks, and output were all documented.
- Key finance professionals, including the CFO, had their performance management processes and remuneration/variable pay structures reviewed.
- The F&A team’s cost and skill mix were compared to peer firms.
- An interim (9-month) and final “To-Be” F&A organogram was suggested.
- Practus and all of its reporters now have smart goals.
- A 12-month financial road map is suggested.
- The cost-to-revenue ratio of F&A employees was cut from 3.1 percent to 2.6 percent over a 12-month period.
- The CFO’s interests were matched with Asclepins’ business objections by increasing the variable compensation component of remuneration from 8% to 21%.
- Over the course of a year, we reduced transaction processing time from 55% to 42% while increasing analysis time from 9% to 21%.