Business Challenge

Our client is a hospital-based outpatient specialty clinic affiliated with a large Northern California health delivery system. The specialty clinic was given an urgent mandate to improve its contribution margin by increasing net revenue and reducing costs.

The key challenges facing our clients were:

  • Lack of comprehensive data to understand the cost of delivering specialty program-based health services
  • Disconnected revenue cycle process
  • Clinical management team lacked accurate business-level reports and tools
  • Challenged by the negative impacts of existing payor contracts and the absence of a corrective process
  • Competing organizational priorities (EHR implementation, support service centralization, health reform response, leadership transition)

Client & Engagement Quick Facts

  • Three month project, engaged with seven external departments and organizations
  • Analyzed 18 programs across five service lines
  • Identified $1.3M in revenue opportunities and re-allocation of donor funding
  • Recommended strategic, tactical and cost re-allocation adjustments to reduce overall expenses

Our Solution

Kenny & Company’s team provided its deep project management expertise and subject matter experience in revenue cycle, provider credentialing and cost-based financial analysis to guide our client in achieving their project objectives. We developed reporting capabilities to identify which services and programs were bringing in more net revenue that enabled our client to re-cast growth opportunities. In addition, we developed an actionable list of revenue-enhancing activities and performed a cost reduction analysis, within a three-year budget forecast.

Business Benefits

Our client now has a data-driven financial view into clinic operations and knowledge of the revenue and cost of each program and service, enabling them to improve their overall contribution margin. We helped our client engage with up-stream and down-stream revenue cycle departments to improve their overall revenue cycle results. Finally, our insight into their payor contracts challenges exposed a systemic issue to be resolved.

About Kenny & Company

Kenny & Company is an independent management consulting firm providing Strategy, Operations and Technology consulting services to our clients. Our management consulting practice, experience and insight also enable us to provide early stage venture capital investments to select startup companies, and through our philanthropic endeavors to give back to our communities.