Situation
- Organization has a historically large mix of capitation contracts; largest payor recently transitioned to fee-for-service arrangement
- PE sponsor performed initial accounting and finance diligence prior; wanted to enhance visibility into the post-transition performance
- Remaining diligence activities and post-transition analysis has stalled due to data challenges
- SLKone was hired to ensure key business processes were ready for integration by developing a reporting process to track key financials and identify process improvement needs upon completion of the transaction
Bespoke Solutions
- Executed site visit to facilitate data transfers while adhering to HIPAA standards
- Interviewed management to evaluate business acumen and ability to effectively lead organization and reverse losses
- Assessed operations and processes
- Created patient volume and cash flow model to enhance visibility
- Identified liquidity issues exacerbated by A/R delays due to change from capitation to fee-for-service contracts; negative cash flows, potential pension fund liabilities, and personnel gaps
Leading With Results
- Developed custom updateable, weekly patient volume and collections reporting tool
- Completed outstanding high priority, legal, and tax diligence items
- Identified and remediated 10+ structural and management deficiencies
- Improved future processes. Identified opportunities for improvement regarding future credentialing process