1. THE PROBLEM

A physician clinic with two major locations experienced lower profitability despite consistent patient volume and unchanged variables such as staffing, payor mix, and services. The lead physician and office manager suspected discrepancies and sought a financial review to understand and address the issue.

2. THE SOLUTION

The approach involved a detailed financial analysis comparing key accounts year-over-year, examining gross and net revenue, and assessing variable expenses. Findings showed that net revenue declined due to a service mix shift and increased salaries from staff turnover and annual adjustments. Recommendations included tracking metrics monthly, optimizing a flexible staffing model, and focusing on factors within their control. Additional guidance was provided to make financial data understandable for non-financial staff.

3. THE OUTCOME

The 5-year model demonstrated that investment coverage would conclude by year 3, surpassing the client's expectations. Actual results showed investment costs diminishing by year 2, saving approximately $224,000. The model provided a precise, adaptable financial outlook that contributed to the satellite’s faster-than-anticipated financial sustainability​.