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CASE STUDY

  ONE OF THE FIVE LARGEST HEALTHCARE EQUIPMENT AND SUPPLIES PROVIDERS IN THE U.S.

Business Challenge   To quickly reduce accounts receivable adjustments, write-offs and collection time across 350 U.S. offices for a company with $1.2 Billion annual revenue.
Project Focus   Assess revenue management operations at representative location(s) to identify collection performance barriers and opportunities, design a "high performance revenue management model" and plan for implementation throughout the company, and provide necessary implementation support.

Financial and
Operating Benefits

  
  • 64% reduction in revenue adjustments
  • 55% reduction in suspended billing (>60 days as a % of net revenue)
  • 42% reduction in accounts receivable >180 days
  • 25% reduction in days sales outstanding (DSO)
  • 25% productivity improvement

Results through the end of 4 months, post implementation

4 years post-implementation - original DSO >100 days is holding at 50 days
Key Changes  
  • Refined revenue management model and training program for immediate performance improvement
  • Used "principles based" approach to operations model design to permit implementation across the diverse business environments and systems of the company
  • Instilled principles of "turnaround vs. deadline"; Focus on keeping current to avoid building backlogs and deterioration of A/R; Quality review at key points to minimize delays and write-offs; Position and train Supervisors for role of "coach"
  • Incorporated continuous process review to achieve ongoing improvements in revenue management, service, quality and productivity
  • Tested the validity of the new model in the poorest performing region resulting in advancement to 2nd best revenue management performance of 23 regions in just two months
  • Implemented the model in 20% of the regions that contributed 75% of all revenue adjustments and write-offs
  • Maximized return on consulting investment by training and coaching 20 client employees as change agents to implement the new model and perpetuate improvements throughout the remainder of the company
  • Developed measurement reports that can be analyzed and acted upon to maintain and improve performance
  • Refined collections models and training program for immediate performance improvement
   

For more information email
Mr. Brennan Malanaphy
Vice President, Business Development
e-mail: Email Brennan