Healthcare services
Healthcare services organizations track EBITDA margin, patient volume, payer mix, revenue per encounter, clinical outcomes, staff turnover, and readmission rates.
Healthcare Industry
Healthcare advisory for finance and accounting.
CFGI supports healthcare companies as they address regulatory and financial reporting standards, reimbursement changes, expense management, labor and supply constraints, cybersecurity, and the transition from fee for service to value-based care.
Industry Landscape
Successful healthcare operations recognize that boundaries between payers, providers, and disrupters are becoming irrelevant.
Scale and efficiency are becoming increasingly important. Healthcare organizations are prioritizing innovation, specialized and personalized treatment, technology, lower cost of care, and improved outcomes.
Digital Health & IT
Digital health and health IT companies track monthly recurring revenue, customer acquisition cost, churn rate, platform uptime, and data security incidents.
Managed Care
Managed care organizations track medical loss ratio, member retention, claims processing time, network adequacy, and quality compliance scores.
How CFGI Helps
A comprehensive range of financial and accounting services for healthcare businesses.
CFGI is a frictionless partner that supplements and enhances financial and accounting operations for healthcare businesses. The healthcare advisory materials identify needs across reporting, technical accounting, operational finance, risk, compliance, cybersecurity, technology, transactions, and valuation.
```Technical, reporting, and public readiness
- Quarterly and annual SEC reporting.
- IPO and reverse merger preparation.
- SEC comment letter responses.
- Gross-to-net revenue accounting.
- Accounting for debt and equity financings.
- Accounting for stock-based compensation.
Operations, FP&A, and interim support
- Monthly close support.
- Management accounting.
- Internal reporting and FP&A.
- Planning and budgeting.
- Forecasting and modeling.
- Interim CFOs, CAOs, Controllers, VPs of Finance, Accounting Managers, and other finance roles.
Transactions, technology, risk, and compliance
- Mergers and acquisitions support, including due diligence, purchase accounting, and post-close integration.
- SOX 404 internal controls assessments and implementations.
- Technology assessment, selection, implementation, and automation.
- Cybersecurity program, maturity, testing, audit, regulatory compliance, Virtual CISO, and managed services.
- Valuations, tax provisions, and tax compliance.
Healthcare Solutions
Services aligned to healthcare’s financial, operational, and compliance pressure points.
The healthcare advisory deck maps specific CFGI value-add solutions to cybersecurity, value-based care, regulatory changes, provider shortages, and invoicing and payment processing.
Cybersecurity
Healthcare companies have a high volume of personally identifiable information, making them susceptible to cyber attacks.
- Cybersecurity program, maturity, and testing.
- Cybersecurity audit and regulatory compliance.
- Virtual CISO.
- Cybersecurity managed services.
Value-based care
CMS is moving to a reimbursement model that focuses on clinical outcomes instead of fee for service, creating complexity in tracking and reporting quality metrics.
- Document and record accounting considerations for value-based care arrangements under revenue guidance.
- Implement data analytics to track quality metrics under each arrangement.
- Planning and budgeting.
Regulatory changes
Healthcare providers face increased compliance exercises tied to the Hospital Price Transparency rule and the No Surprises Act.
- Regulatory compliance.
- Enterprise risk management.
- Finance and accounting process design and improvement.
- Management accounting.
Provider shortages
Staffing shortages, burnout, administrative burdens, and contract labor costs create budgeting and projection challenges.
- Financial planning and analysis.
- Integrated planning and budgeting.
- Management and performance reporting.
- Forecasting and modeling.
Invoicing and payment processing
Revenue cycle management processes are often manual and inefficient, with complexity across payor contracts, uninsured patients, insurance verification, prior authorizations, and denials.
- Technology assessment and strategy.
- Technology selection.
- Finance and accounting systems implementation and re-implementation.
- Automation, including robotic process automation.
Transactions and valuation
Healthcare businesses often need support for acquisitions, reverse mergers, purchase accounting, valuation, debt instruments, derivatives, and equity-based compensation.
- Buy-side and sell-side quality of earnings.
- Financial modeling and EBITDA normalizations.
- Working capital negotiations.
- Purchase price allocations.
- Valuations to support financial reporting.
Why CFGI in Healthcare
Operationally focused healthcare advisory support.
The healthcare page notes that CFGI team members have often “walked the walk,” with experience across healthcare staffing, outpatient therapy clinics, dental service organizations, behavioral healthcare, revenue cycle, finance operations, and transaction diligence.
Built for healthcare finance execution.
Revenue cycle experience
Team experience includes healthcare revenue cycle work, fee-for-service and capitated revenue arrangements, and revenue cycle management operations.
Healthcare operating experience
Team highlights include owning and building a multi-location healthcare staffing and outpatient therapy clinic business before exiting to a financial sponsor.
Dental service organization depth
Healthcare team experience includes supporting more than 860 dental offices and managing high-volume close and reporting processes.
Transaction advisory focus
Healthcare transaction experience includes pre-acquisition diligence, sell-side diligence, post-closing integration, and nearly 400 health services sector transactions.
Key Challenges We Solve
Our clients’ challenges become our opportunity to create value.
```Subsector KPIs
Focused on subsector-specific key performance indicators.
The healthcare advisory deck identifies financial, operational, and compliance metrics across healthcare services, digital health and IT, supplies and ancillary, and managed care.
```Healthcare services
EBITDA margin, patient volume, payer mix, revenue per encounter, clinical outcomes, staff turnover, and readmission rates.
Digital Health & IT
Monthly recurring revenue, customer acquisition cost, churn rate, platform uptime, and data security incidents.
Supplies & Ancillary
Gross margin, inventory turnover, regulatory compliance metrics, and customer satisfaction.
Managed Care
Medical loss ratio, member retention, claims processing time, network adequacy, and quality compliance scores.
Client Impact
Healthcare outcomes from CFGI engagements.
The current healthcare page and the healthcare advisory deck identify outcomes across cost savings, business transformation, accounting, reporting, restructuring, public readiness, budgeting, and transaction execution.
```Cost savings
CFGI helped a major acute hospital provider create cost savings by helping transition multiple service areas, including revenue cycle management and patient services, to a global business center.
Enterprise value
CFGI helped a newly formed portfolio company of a large international PE firm integrate and consolidate three healthcare portfolio companies to create a new enterprise value company.
Medical facilities
A healthcare revenue cycle management solutions company serving provider clients across 50 medical facilities nationwide gained operational visibility through a revenue cycle assessment.
Dental offices
Healthcare team experience includes supporting more than 860 dental offices in a high-volume environment with financial close and reporting responsibilities.
Case Studies
Successful outcomes to critical healthcare challenges.
The following case studies are summarized on-page from the healthcare advisory deck using the scenario, action taken, and outcomes reflected in the source material.
```Case Study 01
Revenue cycle assessment for patient services
Scenario
A healthcare revenue cycle management solutions company owned by one of the largest hospital operators in the country managed patient services for several healthcare provider clients across 50 medical facilities nationwide and needed to improve operational efficiency while maintaining patient care standards in a regulated environment.
Action taken
CFGI developed detailed heat map matrices to show process, people, and technology overlaps across markets. CFGI also created detailed click-by-click procedures with contextual examples for insurance verification, patient scheduling, financial clearance, and regulatory compliance checkpoints.
Outcomes
The organization gained insight into operational variations and root causes, enabling decisions about standardization opportunities. The initiative transformed a complex knowledge-dependent operation into a scalable, documented system with training materials and operational visibility.
Case Study 02
Technical accounting and audit readiness for an MSO structure
Scenario
A new private-equity-backed start-up was created to acquire physician practices and implement a managed services organization structure providing non-clinical support through an administrative service agreement.
Action taken
CFGI completed purchase accounting for consolidated portfolio companies under ASC 805, documented consolidation of physician practices under ASC 810, implemented ASC 842 across consolidated portfolio companies, and documented revenue recognition policies under ASC 606, including principal-versus-agent considerations for value-based care contracts.
Outcomes
The audit was issued timely with few comments on technical accounting positions, and the company had consistent accounting, consolidation, lease, and revenue recognition documentation across portfolio companies.
Case Study 03
Critical projects and interim roles for a health insurance company
Scenario
A technology-enabled health insurance company using a proprietary application to improve treatment outcomes needed technical expertise and additional capacity for one-time events.
Action taken
CFGI supported critical projects and interim roles tied to IPO/de-SPAC activity and SOX 404 policies and procedures.
Outcomes
The company completed the IPO/de-SPAC process, adding funding to fuel growth, and implemented SOX 404 policies and procedures that supported a successful audit process.
Case Study 04
Budgeting and forecasting for a dental service organization
Scenario
A multi-specialty Dental Service Organization had difficulty preparing a detailed budget for its private-equity sponsor. Its original budget had been rolled forward for years and included old formulas and macros that had not been kept current.
Action taken
CFGI developed a tool with clear sections for inputs, assumptions, outputs, and trends, including KPIs and individual dental practices rolling into divisions and entities.
Outcomes
The automated model enabled management to process revisions quickly, engage in scenario planning, make informed strategic decisions, and view the impact on the bottom line.
Case Study 05
GAAP implementation and audit readiness after acquisition
Scenario
A healthcare clinic and pharmacy operator was acquired by a private equity firm and did not have sufficient internal resources to perform purchase accounting or implement financial reporting improvements for its new owners.
Action taken
CFGI implemented ASC 606 and ASC 842, completed purchase accounting under ASC 805, provided journal entries to reflect fair value, and worked directly with auditors, a third-party valuation firm, and the internal team to manage the audit process.
Outcomes
The company successfully recorded the accounting for the acquisition and integrated the work into standardized policies and procedures while management focused on other priorities.
Case Study 06
Technical accounting and valuation for a dental services acquisition
Scenario
A platform acquisition of a multi-location dental services organization by a private equity group required assistance preparing for its initial audit.
Action taken
CFGI completed a valuation required by ASC 805, documented the accounting treatment for new debt instruments issued in connection with the transaction, addressed related derivatives, and completed schedules and disclosures for the equity-based compensation program.
Outcomes
The company received the technical accounting, valuation, schedules, and disclosures needed to support its initial audit after the platform acquisition.
Selected Clients
Healthcare clients represented on the current CFGI healthcare page.
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Industry Contacts
Connect with CFGI’s healthcare industry co-leads.
CFGI’s healthcare advisory leadership includes Accounting Advisory Services and Transaction Advisory Services healthcare co-leads with experience across provider care, health technology, value-based care, pharmaceuticals, pre-acquisition diligence, sell-side diligence, and post-closing integration.
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Jamie Tipps
Partner, Finance & Accounting Advisory Services
Healthcare Industry Co-Lead
Partner with CFGI for better results.
Talk with CFGI about the healthcare finance, accounting, reporting, controls, technology, transaction, and operational support needs identified in the source material.