CLIENT STORIES
Driving financial growth of an orthopedic surgery clinic chain
Orthopedic Surgery Clinic Chain
The chain is one of the leading orthopedic surgery clinics in Florida which was growing rapidly but was unsure if their cashflow could support the growth moving forward.
"We usually get paid for surgeries 12-24 months after the service, once the court case which led to the patient needing surgery has been resolved, this makes us unsure about how much of the billed revenue will be realized and at what time ..”
We started monthly management review meetings to start getting into the details on a regular basis. Then, we integrated cash flow data with service and billing information from the eCW clinic management system. With this we were able to project realized revenue over the next 12-24 months and realized that despite high billings, a short-term loan would be needed to solve cash flow requirements for the next six months, which an existing investor agreed to fund.
“We believe pain management could be a significant new revenue source. Currently, we only perform surgeries, and patients go elsewhere for pain. We’re unsure of the financial impact of acquiring a C-Arm and hiring a pain specialist with supporting staff.”
We projected the additional revenue from adding pain management services and compared it with the costs of acquiring a C-Arm (with various financing options) and hiring a pain specialist and staff. While the cash flow impact would be negative for the next six months, we found that pain management would significantly drive long-term revenue and profit. An investor agreed to provide additional debt, allowing the company to move forward with this new offering.
