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