Practus’ CFO Solutions assisted the diagnostic centers in improving DSO from 90 days to 69 days and productivity per salesperson by 10%.
|Client Name||ROI||Industry||Ownership||Management||No. of Employees||Size||Project Duration|
|A Chain Of Diagnostic Centres||~4.4x||Healthcare||Private;|
|Doctor Managed||50-250||<$10 million||18 months|
About The Company
A chain of ultramodern diagnostic centers with facilities like digital X-ray, digital imaging, digital mammography, bone densitometry, sonography, cardiac imaging, advanced dentistry, spirometry, eye check-up, cancer detection, 3D/4D Ultrasound, advanced dentistry, total body fat analysis, and other services are available. Practus assisted with CFO services to improve the company’s DSO.
Practus’ Role in CFO Services
- Supervised the creation of a business strategy and a long-term company plan.
- Providing assistance to the Doctor CEO with Annual Performance Management Systems and Budgets.
- Financing and operating management information systems were implemented to streamline loss-making centers and invest in high-potential centers.
- Standard Operating Procedures (SOPs) were implemented for all SBUs.
- Set credit controls and improve collection from hospitals and insurers to streamline operating capital.
- Led decision-making on equipment purchases versus leases, new center openings, and franchise negotiations.
- Costing systems were introduced to calculate profitability at the test level.
Impect Delivered in CFO services
- The DSO was cut from 90 to 69 days, resulting in a 32% increase in efficiency.
- Re-agents and consumable expenditures were reduced by 9%.
- Two non-profitable units were closed, one was moved to break-even, and three other centers’ profitability was enhanced.
- Client retention increased from 68 percent to 87 percent as a result of improved customer analytics.
- Charges for 12% of the tests were increased by an average of 30% based on precise costing.
- Regular sales force performance tracking increased productivity per salesperson by 10%.