Financial planning and analysis is an important tool for businesses in the complex industry of healthcare services.
Companies increasingly outsource their financial modeling, particularly as they seek to elevate their financial analysis to meet post-M&A requirements.
Leveraging the expertise of third-party specialists not only streamlines this transition but also injects a level of analytical rigor and foresight that can be transformative. Such partnerships empower companies with the insights and frameworks necessary for making informed decisions, ultimately driving growth and operational excellence in a competitive sector.
Let’s talk about some of these specific tactics and how they can help your healthcare services company.
The Need for Specialized FP&A in Healthcare Services
The healthcare services sector includes businesses such as Intellectual and Developmental Disability (IDD) services, hospice care and behavioral health supports. These sensitive areas present unique challenges for the FP&A process.
One of the primary tasks is the transition of projection models from annual to quarterly outputs to enhance capital investment planning. This shift allows for a more granular analysis of financial performance, facilitating better-informed strategic decisions.
Here are some of the hurdles you might encounter:
Challenges in Implementing FP&A Solutions
Outsourced Modeling for Projection Adjustments
Transitioning financial projection models from an annual to a quarterly basis poses a significant challenge, especially for organizations lacking in-house resources.
This process is essential yet complex, requiring expertise in financial modeling to ensure accuracy and relevance. The demand for such specialized skills highlights the importance of outsourcing, even for tasks perceived as straightforward but critical for long-term planning.
Post-Acquisition Financial Integration
Following mergers and acquisitions, the integration of financial systems and the standardization of KPIs to private equity standards become paramount. This process involves establishing a comprehensive opening balance sheet, developing appropriate KPIs and enhancing reporting capabilities.
The need for a robust FP&A resource to mentor the CFO and oversee this transition underscores the intricacies of financial integration in the healthcare sector.
Professionalization of Finance Functions
The professionalization of finance and accounting functions is a broad requirement within healthcare services, particularly in dealing with Medicaid and Medicare billing complexities.
The expertise in specific systems, such as Microsoft Dynamics, is crucial for the seamless operation of financial departments, emphasizing the need for seasoned professionals in these roles.
Solutions and Strategies
Expertise in FP&A and Modeling
Addressing the challenges outlined requires professionals with a blend of specific qualifications and experiences. An investment banking background, coupled with familiarity with healthcare services, positions FP&A professionals to effectively manage financial complexities and drive strategic initiatives.
READ MORE: Value of Senior Advisors in Healthcare
Strategic Decision Making
An FP&A professional’s role in guiding strategic decision-making is invaluable. By analyzing financial data and identifying trends, these experts work closely with CFOs to shape the strategic direction of healthcare organizations, ensuring that financial planning aligns with operational goals and market dynamics.
Instances of outsourced FP&A expertise or the incorporation of specialized financial analysts have markedly improved financial planning, reporting and strategic decision-making within the healthcare services industry.
These success stories highlight the tangible benefits of specialized financial analysis, from enhanced accuracy in forecasting to more informed strategic planning.
As healthcare organizations navigate post-acquisition challenges and strive for enhanced financial reporting and forecasting, the value of specialized financial analysis expertise becomes increasingly evident.
BluWave is ready to connect your organization with top-tier financial analysis and modeling experts, tailored to meet the unique challenges of your healthcare services business. With our deep network of pre-vetted professionals, we ensure that you have access to the right skills and insights to elevate your financial strategies.
Set up a scoping call with our research and operations team and we’ll connect you with a short list of options within a single business day.
