In early 2023, the BlueStone Services’ Medical Business Advisory (MBA) team was contacted by a mid-sized pediatric medical practice facing an urgent and destabilizing leadership crisis. Their long-standing practice administrator had unexpectedly resigned. The abrupt departure left the organization without a clear succession plan or interim leadership, creating a vacuum when strong guidance was needed. Our client wasn’t seeking a temporary fix, but rather a long-term partner and expert guidance to help them navigate a critical period.
Our Approach
At the recommendation of their KatzAbosch tax advisor, practice leaders engaged MBA for permanent fractional medical practice leadership services. The client faced various operational challenges, but the most pressing concern was the urgent need to stabilize the practice’s financial health. This required the immediate implementation of cash flow controls, a comprehensive financial review to assess the extent of the issues, and the development of short-term budgeting strategies to halt further financial decline.
We helped our client implement accounting best practices by segregating financial and accounting duties—a critical step in establishing internal controls, reducing the risk of errors, and restoring transparency within the practice’s financial operations. In addition, our team assisted the client with:
- Developing standardized policies and procedures, including overhauling the clients’ financial reporting processes
- Redesigning the providers’ compensation plans
- Creating and implementing a structured employee performance management framework
- Conducting a detailed revenue cycle management (RCM) analysis and initiating the practice’s first-ever renegotiation of payor contracts
Results
Increased Operational and Financial Performance
Within the first 60 days of our engagement with the client, the practice saw immediate and measurable improvements in operational and financial performance, including:
- A 25% reduction in overhead expenses
- A 25% improvement in staff productivity
Within the first year of the engagement, our client achieved several major milestones:
- Returned to year-end profitability
- Reduced its debt ratio by 50%
A Solid Financial Foundation and Peace of Mind
By addressing operational challenges and offering strategic support, our team enabled clinical and administrative leaders to focus on what matters most: the health and well-being of the patients they serve. This level of integration and support has been instrumental in fostering a collaborative environment and sustaining long-term organizational stability, and perhaps most importantly, offering peace of mind.
A Trusted Partner
We continue to work closely with the client to provide ongoing support, and leaders know we’re just a phone call away if they have any questions or concerns. With MBA as a trusted partner, the board members can move forward with confidence, knowing that expert guidance and dependable support are always within reach.
