Model for accounting in medical practices

Background

Our case study illustrates our process and strategies for meeting our client’s needs. In different states of the United States, our client has well-established medical centers. Having purchased our medical center Excel financial model template from our website, he contacted us to request updates. In particular, they were looking for a tool that would allow them to generate a statement of revenue and expenses by class in the “Medical Group Management Association (MGMA©)” format along with Essential Medical Practice Financial Management Ratios.

Problems And Challenges

• The client purchased a model he didn’t need and wanted an entirely different model.
• Data for financial statements was not well structured at the start of the project.
• Analysis of accounts receivable and collections.

Problems

To better serve our clients, we met with them to understand their needs.

• After analyzing the Medical Group Management Association (MGMA) Formated Financial Statements, we developed a flexible input sheet with drop-down options corresponding to the heads mentioned in these statements, which the clients may use to choose from, or they can alter the data validation in order to meet their specific needs.
• We researched medical insurance billing for a client’s accounting model, creating a table for account receivables and collections.

Observations And Assumptions

The assumptions we developed are flexible, and they can be modified easily by the clients. Other than the amounts, the clients must select everything from the dropdown menu, thereby ensuring the accuracy of the medical practice accounting model. 

Calculation Of Ratios

To compare the results with the benchmark data, we calculated the ratios for each month and then took an average. To determine whether the ratio is in line with the industry benchmark. Further, we provided the final output of the ratio as “Feasible” or “Not Feasible” based on the industry benchmark. The company must examine its operations and performance in order to meet the criteria if the ratio is not feasible.

Final Thoughts

The Client requested an Excel tool that would track the expenses and revenues of the medical center, as well as essential medical practice financial management ratios. In accordance with the deadline, we provided the client with the required tool. According to the projections, the Medical Center will be profitable each month but will be particularly profitable in November and August. 

Every client of Myinvestorchoice receives the best possible service. We seek to understand the client’s requirements through emails and meetings; meetings are preferred and are scheduled in accordance with mutual agreement. Upon receiving a clear understanding of the requirements, we provide the best possible output and ensure that the project is completed on schedule. Our team keeps the client informed of the progress of the project so that both parties are on the same page. Upon completion of the project, we take feedback from our clients in order to improve our services.

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