Digitization is transforming the healthcare industry and adoption of smart systems, mobile penetration, and government initiatives for digital adoption will reshape the diagnostics, healthcare, and health tech industries.
Disruption With Digitization
Technological innovation and digital transformation have caused massive disruption in the healthcare industry. Experts put the value of the global healthcare industry at $9 trillion and spending on healthcare to reach $10 trillion by 2022.
With wearables, interactive data, and health analytics transforming the future of healthcare – Practus focuses on creating intelligent solutions for the finance function using automation, RPA, AI, and Machine Learning that streamlines F&A, forecasting, SAP optimization, assistance in fundraising, and creating long-term value for stakeholders.
is an ultramodern diagnostic centre with comprehensive facilities for Laboratory, Imaging investigations and other diagnostic facilities headquartered in Mumbai. Lifecare provides digital x-ray, digital imaging, mammography, bone densitometry, sonography, cardiac imaging, advanced dentistry, spirometry, eye check up amongst others.
My CFO Role
MyCFO plays the role of a full fledged CFO for the Diagnostic Center which involves partnering the CEO to support the execution of Diagnostic Center’s Business Plan, implementing a high quality MIS on both the Finance and the operating side which involves defining, designing and tracking of KPI’s, providing visibility into financial and operating performance through visual dashboards to the CEO. MyCFO has also assisted the Center to implement best practices and process improvements through development of Standard Operating Procedures (SOP’s), implement performance measurement systems for the Finance team, streamlining working capital flows including setting credit controls, improve collection mechanisms from hospitals and monitoring cash flows through preparation of rolling cash flow forecasts. MyCFO also plays a commercial decision making role by being involved in equipment purchase decisions, opening of new centers and front ending discussions with existing and potential franchisees.
How the clients benefited
MyCFO’s involvement helped Improve collections from 90 days to 30 days, resulted in cost savings of 20% in costs relating to re-agents and consumables, closure of non – profitable units based on unit level P&L and Break even point analysis, increased stickiness of clients through introduction of loyalty schemes based on our analysis on repeatability of clients, improved prices for certain tests buy up to 30% based on accurate test level costing and improvement in sales efficiency by 10% through regular sales person performance tracking.
is amongst the top 10 hospital chains currently operating in India and operates 10 hospitals in Maharashtra with a bed capacity of approx 750. The chain is Private Equity backed and is in the middle of a significant expansion plan. Management expectations are for Finance and Accounts (F&A) department to provide visibility on Return on Investments from the new facilities, capacity utilization, hospital profitability and Return on Capital Employed (ROCE). The Hospital also runs ‘health care delivery’ centers and specialty labs within each of the hospitals that they operate.
My CFO Role
The Hospital Chain and the Private Equity Fund have recently engaged MyCFO to Benchmark the F&A’s staff capability with the best practice run hospitals. The role involves documenting the key outputs delivered by key F&A staff currently, their frequency and an assessment of the quality of such output, best possible organization structure in F&A to support the execution of Hospital Care’s Business Plan, Possible re-deployment of resources to enable more and better quality output, with the same F&A staff strength, Evaluation of what tasks may need to be executed by the chain’s F&A in the next 12 months, along with an assessment of which of these tasks can be carried out by existing F&A team and which ones may need external assistance. The objective of the study is to recommend ‘SMART’ measures to improve Finance Effectiveness.
How the clients benefited
MyCFO’s involvement helped Hospital Care to redeploy their team’s time from routine activities to those that resulted improvement of Finance Department effectiveness and allowed them to free up man power through implementation of systems and better utilization of current processes.