Medical Practice Accounting Model Case Study

Background

The case study represents our process and strategies to solve our client’s requirements. Our client has well-established medical centers in different states of the USA. He purchased our medical center excel financial model template from our website and contacted us to have updates on that. Particularly, they were looking for an excel medical practice accounting tool to generate a statement of revenue and expenses by class in “Medical Group Management Association (MGMA©)” format along with Essential Medical Practice Financial Management Ratios.

Challenges

• The client purchased a model he did not need and wanted an entirely different tool.
• The client had not had well-structured Financial statements data to start the project with.
• Handling the Account Receivables and Collection as these were required to analyze the needed ratios.

Solutions

• We had a meeting with clients to understand their requirements to serve them better.
• We analyzed the  “Medical Group Management Association (MGMA©) Formated Financial statements and made a flexible input sheet with drop-down options with heads mentioned in the MGMA© Financial statements so that the clients can either choose the options from the drop-down or they can alter the data validation to meet their specific requirements.
• For Account Receivables and Collection, We researched how medical insurance billing works and made an input table for our client’s medical practice accounting model to cater to the account Receivables and collection.

Assumptions

We created flexible assumptions that can be easily understood by the clients and can be altered easily. Apart from the amounts, the clients must select everything from the dropdown, making the medical practice accounting model error-free. 

Moreover, we created different assumptions tables separately for Revenue, expenses, and collection to make the model understandable and easy to use.

Financial Statement

The Financial Statement-Statement of Revenues and Expenses by class is calculated through linked formulas. We further forecasted the financial statement for one accounting Cycle. Based on the projections, the company will have the highest net profit in November, followed by August.

Ratios

We calculated the ratios for each month and then took an average to compare the result with the benchmark data. To know whether the ratio matches the industry benchmark. Moreover, in this medical practice accounting model, we provided the final output of the ratio to be “Feasible” and “Not Feasible” based on the industry Benchmark. If the ratio is not feasible, the company has to look at its operation and performance to perform better and meet the criteria. 

Dashboard

The dashboard visually presents the projections of the medical center monthly in the form of graphs.

Conclusion

The Client wanted a medical practice accounting excel tool that tracks the expenses and revenues of the medical center and then the revenue and expenses in the form of class along with Essential Medical Practice Financial Management Ratios. We delivered the client the required tool within the timeline. Based on the projections, the Medical Center will have a good profitability position each month, but the profitability will be high in November, followed by august. 

Oak business consultant provides the best possible services to every client. We try to understand the client’s requirements through emails and meetings; meetings are preferred and scheduled through mutual discussion. Once the requirement is clear, we provide the best possible output and complete the project within the deadline. We keep the client updated with the process of the project so that both can be on the same page. We complete the project and take feedback from our clients to improve our services.