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Healthcare CFO Services

From Cash Flow Crisis to Record Profitability in a $50 Million Healthcare Services Company

The Challenge:


A $50 million private healthcare services company experienced rapid growth, nearly tripling in size and revenue in just 18 months due to the award of several large customer contracts. However, the company's focus was primarily on expansion into new services and locations, without a deep understanding of the underlying profitability and unit economics. This lack of insight led to a severe cash flow crisis, risking the company’s ability to meet essential financial obligations, including payroll.


The Solution:


CFO Growth Advisors led a comprehensive turnaround effort that focused on profitability analysis, the development of key performance indicators, and enhanced process management.


A thorough examination of the company's financials was performed, revealing the underlying profitability challenges associated with the expansion strategy. This profitability analysis based on the unit economics identified high-cost, low-margin services were significantly contributing to the overall financial strain which only worsened the cash flow crisis as the business grew.


Crucial financial and operational Key Performance Indicators (KPIs) such as Gross Margin, Payor Mix, and Capacity Utilization, were developed to monitor and measure performance, and benchmarks were established to evaluate the profitability of each service and location.


CGA also developed and implemented improved process management for Accounts Receivable (AR), focusing on efficient collections. Billing processes were streamlined and proactive measures were executed to reduce outstanding receivables.


The Outcome:


This intensive turnaround effort was a dramatic success. The company achieved record levels of profitability by strategically assessing and optimizing its service portfolio. The focus on understanding unit economics allowed for informed decision-making.


The company successfully navigated the cash flow crisis, ensuring timely payroll and meeting financial obligations, while the improved Accounts Receivable processes directly contributed to a much more robust cash flow and sustained, healthy profit margins.


The enhanced profitability provided the company with the financial capacity to make targeted capital investments that were directed towards improving customer service quality and supporting further strategic growth initiatives.

Healthcare companies encounter a range of financial and operational challenges, including the need to sustain strong cash flow, effectively adhere to regulatory compliance requirements, and control costs. CGA offers specialized financial expertise customized to address the distinctive challenges and requirements of the healthcare industry. Our CFOs adeptly navigate complex regulatory environments, oversee financial reporting and compliance, and formulate strategic financial plans. Drawing upon substantial experience within:

  • Biotechnology

  • Pharmaceuticals

  • Medical Device and Technology

  • Ambulatory Care


CFO Growth Advisors delivers tailored solutions to address these vital financial and operational goals. This hands-on engagement plays a crucial role in enhancing the prosperity and financial well-being of healthcare companies, allowing them to focus on providing exceptional healthcare services. Our team of highly skilled fractional CFOs provides immediate access to specialized expertise for healthcare companies in the San Francisco Bay Area and Silicon Valley, including:

  • Financial & operational reporting

  • Profit margin analysis​ and improvement plan

  • Cash flow analysis and improvement plan

  • Accounts receivable management and process improvement

  • Payer mix analysis

  • Financial & management analysis

  • Budget development & monitoring

  • Cost and cash flow management​

  • VC & investor relations

  • Tax strategies

  • Board & investor presentation & reporting

  • Banking and alternative financing sources

  • COO operational support

  • Business valuation

  • KPI & management dashboard development



These services are available on a part-time or long-term basis as needed.

Want to learn more about our services?

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