Medical Services

Company Overview

Medical Services - Our client is a provider of certified surgical assistants as an independent contractor to hospitals and surgery centers.  The Company is comprised of 3 separate divisions generating revenue of $8 million and was profitable.

Engagement Overview
•  Our client experienced difficulties in billing and collecting its accounts receivable, and as a result was in a severe liquidity crisis and in arrears on its payroll taxes. 

 

•  Fort Dearborn Partners (FDP) was engaged to review and analyze the Company's policies and procedures over its billing and collections cycle and to improve working capital.

 

•  FDP worked with Management and identified and recommended changes to the following:

 

–  Increased certain patient billings to match insurance requirements. 
–  Improved collection response time by changing accounts receivable aging from bill date to treatment date.

–  Developed cash collection trends and rates by insurance carrier to identify unprofitable relationships.

–  Improved past due collections by utilizing outside collection agencies. 
–  Developed procedures to verify patient insurance coverage and collect required billing information.
Results
•  The Company was receptive to changing their procedures and increased their prioritization of maintaining proper billing processes throughout the organization.

•  Our client returned to positive cash flow and was able to refinance their debt facility with their existing senior lender.