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Financial Overhaul for a Mid-Sized Healthcare Provider

Industry: Healthcare & Life Sciences

Background

A growing regional healthcare provider, offering outpatient services across three locations, had been expanding rapidly. With an annual revenue of $8.2 million, their clinical operations were strong, but behind the scenes, financial inefficiencies were causing unnecessary strain. They had no centralized reporting, struggled with insurance billing cycles, and lacked clarity on departmental performance.

This made it difficult for leadership to plan for growth or stay ahead of compliance obligations. That’s when they reached out to Big 4 Accountants, not just for accounting support, but for guidance on setting up long-term financial stability.

The Challenge

Fragmented Financial Reporting

Each clinic operated its own books using different software and inconsistent account structures. This made it nearly impossible for leadership to get a clear financial overview across the organization. Consolidating reports required manual intervention, often leading to errors and delays. Decision-makers lacked reliable data to track performance or allocate resources.

Poor Revenue Cycle Visibility

Insurance billing processes were poorly tracked, with frequent coding errors and limited follow-up on rejected claims. Payments took too long to come in, on average, 62 days, creating unnecessary cash flow issues. The team couldn’t identify where delays were happening, which made it harder to plan for payroll, equipment purchases, or expansion.

Compliance Gaps

With regulations shifting constantly in the healthcare sector, the business struggled to stay current. Several payroll and tax filings had been submitted late, putting them at risk of penalties. Their internal staff lacked the capacity to track deadlines or interpret regulation changes, especially those tied to healthcare-specific reporting requirements.

No Budgeting Framework

Spending decisions were reactive rather than planned. Department heads didn’t have formal budgets or spending limits, which led to frequent overages. Without a budgeting system in place, the business had no benchmarks for expected expenses, and leadership couldn’t monitor which areas were overperforming or under control.

Overlooked Tax Savings

The business wasn’t taking advantage of healthcare-related tax benefits. Hiring incentives, investment-related write-offs, and training credits went unclaimed year after year. The internal team didn’t have the expertise to identify these savings opportunities or the capacity to review past returns for missed deductions, costing the company tens of thousands annually.

The Approach

We started by centralizing their accounting systems into a unified framework, bringing all three centers under one financial view. This included setting up consistent general ledger structures and automated consolidation for reporting. At the same time, Big 4 Accountants conducted a full revenue cycle audit, tracking patient intake to final payment, and identified gaps in billing follow-up and coding errors that delayed insurance payouts.

A budget model was created for each department, based on historical data and growth projections. For compliance, we introduced monthly check-ins to keep filings timely and aligned with regulatory changes. Finally, our tax team conducted a full review to identify credits the business had missed in prior years.

The Results

Accurate Financial Oversight

With real-time consolidated reports across all centers, leadership could finally make informed financial decisions. Reports included service-line profitability, helping to phase out underperforming treatments.

Shorter Payment Cycles

The average insurance collection window improved from 62 days to 39 days. This was achieved by fixing claim coding issues and introducing automated follow-ups for pending payments.

Improved Compliance and Timeliness

All tax and payroll filings for the last two quarters were submitted on or before deadlines, with supporting documentation fully prepared. A compliance calendar now keeps the team on track year-round.

Controlled Department Spending

Budgets were rolled out to each department with monthly variance reports. Departmental spending stayed within 92% of budget, down from the previous 117%, leading to better cost control.

Recovered Tax Credits

We identified and filed for healthcare-specific tax credits from the past two years, resulting in a $58,000 tax refund. The company also now takes advantage of quarterly deductions related to equipment purchases and staff training programs.

How Big 4 Accountants Made a Difference

This healthcare provider didn’t need more staff, they needed structure, oversight, and a better handle on their financial flow. By stepping in with clear systems, accurate reporting, and timely compliance support, Big 4 Accountants helped them move from guesswork to grounded decision-making. The improvements weren’t just on paper, they translated into faster collections, fewer compliance risks, and more control over everyday spending. For healthcare businesses that want financial clarity without adding more to their plate, this kind of partnership can change how they operate.