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An illustration of a leaf and a ball of sand.
Services

Fractional CFO
Services

An illustration of a leaf and a ball of sand.

C-suite financial leadership for healthcare organizations that have outgrown the bookkeeping-only model — without the overhead of a full-time hire.

The Reality

Know What Your Growth Is
Producing.

As an established health and wellness practice grows past $1 million in annual revenue, revenue does not tell the whole story. Growth may improve profitability, or it may put more pressure on cash flow.

A high-revenue service can still carry a thin service margin after provider compensation and the cost of delivering care. In a multi-location practice, consolidated financial statements can also hide meaningful differences in location-level profitability.

Healthy Bodies of Finance helps practice owners understand what growth is producing before more cash is committed to it. We look at changes in cash flow and practice-level profitability to see whether the practice is getting the financial return expected from its growth.

Before adding another provider or committing to another location, practice owners can see whether the business has the financial capacity to support the decision and whether the expected return justifies the investment.

WHAT'S INCLUDED

Monthly financial reporting should do more than confirm how much revenue the practice generated.

We review changes in cash flow and profitability to understand what caused the change. If a service, provider, or location affected the result, we look at the underlying activity that changed the number.

Financial and operating KPIs become part of the review when they help answer a question in the financial statements. Provider productivity, for example, can help explain a change in revenue or service profitability. The additional context helps the practice owner review pricing, staffing, or provider compensation.

Cash flow forecasting shows how much cash the practice is generating and how much is needed to cover operating costs and financial commitments.

The forecast helps you evaluate whether the practice can take on another provider, a new financial obligation, or a planned investment without putting too much pressure on cash.

For practices with insurance reimbursement, revenue cycle performance also affects cash availability. Reimbursement delays and collection patterns can explain why earned revenue has not yet reached the bank.

Service profitability shows whether the revenue from a service is producing enough margin after the cost of delivering care.

Provider compensation becomes part of the analysis when it changes the economics of that service. Provider productivity can help explain whether the revenue generated supports the compensation structure. Practice owners can then see where pricing or provider compensation deserves closer review.

The location with the biggest revenue number does not get the starring role by default.

Location-level financial reporting lets us look beneath consolidated financial statements to see what each location contributes to practice-level profitability. Differences in provider compensation or the cost of delivering care can explain why locations with similar revenue produce different financial results.

The stronger question for a practice owner is whether each location is producing enough margin to support its operating costs.

A budget has more value when it helps explain why actual results differed from expectations.

Budget-to-actual reporting shows where financial performance departed from the plan. Variance analysis helps identify which assumptions no longer fit what is happening in the practice and where the forecast needs to change.

Financial forecasting shows how a proposed growth decision could affect future cash flow or profitability. Scenario modeling lets us test different assumptions before the practice commits cash.

If the decision involves another location or an acquisition, we can test whether projected profitability supports the investment and whether the practice has the financial capacity to take it on.

 

What You Walk Away With

What a fractional CFO
engagement actually
looks like.

◈

You Know Whether Growth Is Paying Off

Practice owners can see if increasing revenue is improving practice-level profitability and whether cash flow can support another provider, location, or financial commitment.

◉

You Know Where the Financial Return Is Coming From

Service profitability shows what the practice keeps from the revenue its services generate. Location-level financial reporting helps identify where strong revenue is producing the expected return and where profitability is falling short.

◎

You Have the Numbers Before the Decision

Financial reporting shows what the practice has produced. Before a growth decision is made, forecasting can show how the decision could affect cash flow or profitability and whether the practice can afford to take it on.

How This Service Is
Different

Fractional CFO focuses on what the financial results mean and what those results can support next. Finance Team Development looks at who produces and reviews the financial information. Forensic Accounting + Fraud Prevention looks at fraud risk and the financial activity behind the accounting record.

We Start With a Paid
Financial Assessment

Every engagement with Healthy Bodies of Finance begins with a paid Financial Assessment,
which helps us determine whether ongoing Fractional CFO support fits what the practice needs.

Know what your growth is producing before you decide what comes next.

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