Finance management of a healthcare facility is not natural terrain, with multiple departments, services, doctors of international and national reputation, other supporting staff and a host of other activities which require funds, finance management is difficult. Fund and its efficient management are required at every step, right from the construction of the building to set up the operations to hiring right talent and promotion. Finance management is usually divided into three categories:
Hospaccx helps you in handling routine financial activities, such as negotiating contracts, making cash available for expenses such as payroll, and maintaining a cash cushion for unexpected costs. At the hospital’s executive level, the financial management means providing the other members of the leadership team with information to make strategic plans to prepare for the future. For example, large physician practices and hospitals may decide to offer expanded tests or treatments by buying new medical equipment. Helping to make the decision and finding the best way to pay for it are both parts of financial management.
DAY-TO-DAY ACCOUNTING MANAGEMENT
Daily accounting management is a mandatory exercise for a massive facility like a hospital. It is the practical application of management techniques to control and report on the financial health of your organization. This involves the analysis, planning, implementation, and control of programs designed to provide economic data reporting for managerial decision making. This includes the maintenance of bank accounts, developing financial statements, cash flow, and financial performance analysis.
Hospaccx helps its clients and provide accurate and timely financial and statistical information required by managers to make day-to-day and short-term decisions.We also provide our clients with a range of things to assist them in their day to day accounting. We usually organize the data into tools, formats, and templates. Data is more in the form of an excel which can be downloaded, adapt and tailored to their needs, and then can be used on an ongoing basis. This eventually helps in preparing annual accounts and reports and managing tax obligations. We strongly recommend hospital and its staff to keep their records in good form, it helps in many ways, mainly focusing on the core activities of the hospital and other revenue-generating roles. We also use these resources in providing guidance and support to our clients on how to deal with their accounting on more specific matters such as determining structured account narratives and codes, once they move to the next level or phase.
INTERNAL AND EXTERNAL AUDIT
Internal and external audits of a health care system are designed to safeguard it from any risk and to make it more sustainable and viable for the future. A review gives a clear picture of the current operations, where the system is lacking and what improvements can be incorporated to make the unit financially sustainable and patient-friendly. An audit is merely an on-site verification activity, such as inspection or examination, of all the processes and quality systems running in a hospital to ensure compliance with requirements. An audit can be specific to a particular department or function of a hospital, methods or systems.
An audit is usually classified as internal or external, depending on the interrelationships among various departments and the size of the hospital, whether it is a single specialty, multi-specialty or super-specialty. Internal audits are performed by employees of the hospital while an outside agent carries external audits. Internal audits are also referred to as first-party audits, while external audits can be either second-party or third-party.
Based on the purpose of audit, compliance, conformance or performance, we offer specialized services throughout the audit process. Our team of auditors possesses the experience and expertise to carry both internal and external audits with accuracy. Internal auditors will examine issues related to your healthcare business practices and risks, while external auditors review the financial records and give their opinion regarding the financial statements of your healthcare organization. Internal audits are conducted throughout the year, while external auditors perform a single annual audit.
Hospaccx will help you conduct both internal and external audits, from audit preparation to audit performance, reporting and follow-up and closure. We offer professional assistance and take care of all audit functions and guide hospitals in hassle-free audits.
What we do:
We design an audit mechanism, both internal and external and share it with the key team members of the hospital to prepare them for the audit. SOPs are prepared to bring everyone involved in the audit on the same page. We check all the systems, documents, billing, invoices, labs etc. and observe if there is some deviation from the set standards. If we find any variation, we recommend the solution to the hospital authorities and help them implement the same. We also perform a follow-up audit to ensure that the recommendations given during audit are followed diligently. If we find a gap, we again recommend and take necessary actions to help hospital authorities comply.
FINANCIAL GROWTH STRATEGY
Every business, even if it is a hospital needs a sound growth strategy and planning. Only running and managing the day to day operation will not yield in the long run. For the long-term growth and financial viability, it is essential for a hospital to invest in specific growth strategies. A growth strategy is primarily categorized into two:
- New product
- New Market
For a healthcare facility, new products can be an addition to the host of medical services that it has already been offering, like the addition of a new emergency unit, cancer or chemo unit or joining of a renowned health care practitioner in the team of doctors who is acclaimed and people know him for his diagnosis and treatment. New market in the healthcare industry refers merely to penetration in the new nearby areas, like small towns or villages by opening a small unit or single-specialty services. This way the facility reaches the doorstep of people living nearby. Adopting a growth strategy or changing the plan indeed leads to increase in patient- flow, more revenue and profit for the organization.
Hospaccx Healthcare consultancy is one of the chosen company when it comes to planning and formulating the growth strategy of a hospital. We have the relevant experience and a decent team who know what steps should be taken by the hospital owners to increase the patient-flow that eventually results in the growth of the organization. The growth strategy of any organization is determined by some factors like its current financial situation, the competition, and even government regulation. We offer services in the field of :
- Market penetration Strategy: Here we suggest our clients penetrate more into the existing market with new products or services or a re branding or positioning campaign. The result of such a strategy should ideally be more market share and increased brand recall.
- Market expansion Strategy: Here we recommend our clients to explore new markets, tap the untapped areas and sell the same services. It is recommended after thorough market research, and the primary reason behind the market expansion is the emergence of new hospitals in the near-y areas which has snatched patient-flow resulting in lower revenue.
- Product expansion: Increasing the services is a good option for hospitals with a small portfolio of services. We suggest such clients offer more services to the patients and become a one-stop solution for most of their medical requirements. This results in higher patient-flow and combats the overall risk of business loss.
- Diversification: By diversification here mean new services to the new markets. The strategy is first to explore new markets, like the primary or secondary drain areas and then offering them some new bunch of services. By doing this, the hospital will get more and diverse patients with other health issues.
MERGERS & ACQUISITION
Besides, remodeling and expansion, what is the other way to expand a hospital?
The answer to this question is Mergers and Acquisition.
A merger and acquisition are one of the best options when the hospital owner and management feel that there is a need to expand the current operation. Mergers are for two reasons, first is to utilize the extra funds or capacity so that nothing goes unutilized. And the second is to increase revenue. Although, merging with an existing hospital is not an easy exercise. It involves a complete process change and a change in the team, facilities and sometimes geographies too. It can only be possible with a sound knowledge of the entire merging process, the legal norms, compliances and government regulations.
Similarly, acquiring an existing entity is also done by hospitals when they plan to expand. It requires funds and in-depth knowledge of all the legal and government regulations with business acumen to execute such an activity.
Just because we know what we need to do and how.
we know that once the hospital is on a growth trajectory, the management feels that it is the time to expand and seek professional advice to carry on expansion. We consider this as an opportunity to assist our clients in carrying out a smooth merger or acquisition activity. Our team of legal advisors, facility planners, technicians, health consultants help the hospitals in this stage of transition. We also offer relevant promotion and branding activity and monitor how a piece of news is presented in the market. There are specific teething troubles that emerge just after a merger or acquisition. We do a complete handholding of our clients and make it easy for them to familiarize with the new set-up. We redesign the entire growth strategy and conduct a pre and post- merger audit to check for any lacunas or gaps. With , you can be confident that your merger or acquisition will be a hassle-free process and you will be able to materialize your expansion plan smoothly.
Investor funding or raising funds from various sources is one of the most crucial and vital tasks for any hospital. It is difficult to imagine a hospital without the adequate resources. Funds can be raised from various sources, however, before applying for funding or pitching investors for the same, a sound market feasibility study and financial feasibility report is required. When the investors study the report, they gain more clarity about the vision of the promoter, his plans, hospital design and planning and fund availability with the sponsor.
Hospaccx Hospital consultancy enables you to raise funds for your dream hospital project from multiple and safe sources. We help you by preparing hospital market and financial feasibility report. The detailed project report will help you to understand the CAPEX & OPEX required for the upcoming hospital.This specific project or pre-feasibility report will help you to raise a loan from the bank or the respective investors. Post the complete viability report formation of your healthcare venture; we search for sources from where you can expect safe and timely funds availability, that includes sourcing from reputed banks, NBFCs or private investors. We have long-term relationships with all the major banks, NBFCs and investors and recommend the best option for you.