Practus’ CFO Solutions assisted the hospital in reducing the cost of working capital by ~1.5% and doctor attrition ratio from ~15% to 8%.
|Client Name||ROI||Industry||Ownership||Management||No. of Employees||Size||Project Duration|
|MomWorld||5.9x||Healthcare||Private, PE-Backed||Professional||~400||$50 million||10 Months|
About The Company
MomWorld is a comprehensive women’s and child-care hospital network dedicated to providing women, newborns, and children with world-class healthcare services. MomWorld was funded in 2016 by a mid-cap PE fund, which immediately brought in Practus to provide visibility on the company’s ambitions and capital utilization. MomWorld has 350 beds scattered across four locations.
- Interim Chief Financial Officer.
- The “Conscience Keepers,” in charge of the cash control role.
- End-use of money directed toward projects with the highest ROCE.
- Standard Operating Procedures for the Procure to Pay cycle were implemented in four locations.
- The finance team’s performance measurement systems have been deployed.
- Within two months, delivered profit and loss and cashflow at the site and SBU levels.
- Practus’ three full-time employees (CFO, Controller, and Accountant) were successfully transferred to MomWorld’s team.
- In accordance with the business plan, capital budgeting was accomplished within three months.
- Working-capital costs are reduced by ~1.5 percent.
- A systematic and disciplined incentive scheme reduced doctor attrition from ~15% to 8%.
- The strategic decision to increase the emphasis on outcome-based marketing spend resulted in a 10% decrease in per patient acquisition cost.
- Fixed revenue leaks to increase collections by 11%.