Looking to boost your medical group’s performance?
We recently helped a client examine their financial performance by specialty to identify areas for improvement and pinpoint strategic investment opportunities!
A private, not-for-profit health system in the Southeast, with annual revenues of $5 billion, partnered with SullivanCotter to conduct a strategic assessment of its specialty investments. The organization was facing nearly $400 million in financial losses within its multispecialty medical group. Benchmarking overall financial performance proved challenging due to the diversity of specialties, and leadership lacked visibility into how each specialty contributed to these losses. This uncertainty made it difficult to set realistic financial targets or determine what level of loss was sustainable.
Challenges
- Financial losses within the medical group were reaching unsustainable levels
- Effectively benchmarking overall financial performance by comparing to national data was difficult due to the client’s diverse multispecialty mix
- Limited insight into how individual specialties contributed to overall medical group performance
- Leadership had trouble setting realistic financial targets due to uncertainty regarding sustainable loss levels
Approach
- Assessed each specialty individually, including hospital-based and non-hospital-based specialties, as well as group performance as a whole
- Utilized multiple specialty-specific market surveys, proprietary tools, and key financial indicators to benchmark performance and measure net income/loss per FTE physician/provider, per wRVU, and as a percentage of medical revenue
- Calculated financial improvement opportunities by estimating the impact of each specialty performing at benchmark median levels.
- Identified a potential $42 million gain by highlighting the top five specialties – which accounted for over 50% of the total improvement opportunity
Outcomes
- Actionable Insights: Delivered data on how each specialty compared to national benchmarks
- Realistic Targets: Equipped the medical group with critical information needed to set achievable financial goals and implement targeted improvement strategies
- Strategic Initiatives: Identified key specialties driving the majority of financial improvement opportunities – enabling leadership to prioritize accordingly
- Practical Improvement Plans: Analyzed the top five specialties and designed a tactical roadmap that will allow the health system to capitalize on financial opportunities
Improve medical group performance by identifying the areas of highest priority…
SullivanCotter can help!
To help organizations understand their current operational and financial performance, SullivanCotter partners with medical groups to conduct a comprehensive performance assessment and then develops actionable recommendations for improvement.
