BTerrell Group Blog

Top Issues Facing Healthcare Financial Leaders in 2021

Posted by Brian Terrell on Wed, Aug 18, 2021

Sage Intacct survey reveals post-pandemic challenges and how leaders are solving them


As the world continues a slow economic emergence from the pandemic, healthcare industry players remain in a challenging situation. According to an AMA report, hospitals lost more than $323 billion in 2020. In addition, a majority of physicians reported revenue decreases averaging 32%. Sage Intacct recently surveyed more than 200 financial healthcare executive to better understand their current issues and what practical steps they are taking to adapt their organizations for success in the coming months and years. You can read the whitepaper detailing the survey and results here.

Many of the challenges facing healthcare financial leaders are direct ramifications of the pandemic, including dealing with a newly remote workforce and the loss of revenue from the delay/cancellation of voluntary procedures. Other pressures were already felt, but accelerated by the pandemic, including the need to improve budgeting and forecasting. What struck us about the survey responses was the critical importance of access to current operational data to support agile, strategic decision making and to accelerate innovation.

BTerrell Group works with healthcare organizations to provide real-time access to the data that matters most. One of our clients, CareATC, is saving 40-60 hours of data entry each month thanks to automated workflows and integration with supplier data. As a result, the organization has avoided hiring at least two full-time accountants, at a savings of around $100,000 per year. Another client of ours, Epiphany Dermatology, was able to grow from seven to 50 clinics while avoiding the need to hire additional accounting staff.

What are your healthcare organization’s top financial challenges? Let’s talk about how Sage Intacct and BTerrell Group may be able to help you solve them. Reach us at 214-647-2611.

Tags: healthcare, sage intacct

What is ABCs? Time to Adopt Activity-Based Costing for Healthcare Organizations

Posted by Brian Terrell on Tue, Mar 30, 2021

What is ABCs? 3 Reasons Healthcare Organizations Should Adopt Activity-Based Costing Now

March Blog_v2

As healthcare finance executives, do you truly understand the true costs of patient care? The costs of the care are not just the costs between healthcare organizations and patients, but it also includes the overhead such as maintenance fees and other operating costs. To achieve long-term success, healthcare providers must consider the actual cost of their services. Let’s introduce activity-based costing, also called ABCs, which allows you to compute the actual cost and understand the cost structures effectively.

Why should healthcare finance executives adopt activity-based costing now?

Three main reasons to utilize ABCs for healthcare organization:

1. The U.S. healthcare system is moving to ACOs and other value-based care

To manage well the financial risk from a hospital’s or an ACO’s value-based-care contracts, healthcare organizations will need to understand and forecast their costs to control the budget and avoid potential losses. Healthcare finance executives can calculate the actual cost of services, supplies, and other operational areas on a per-case basis under the model of activity-based costing.

2. COVID-19’s financial impact on healthcare organizations

Over half of U.S. healthcare providers are operating at a loss, and their financial predicament is expected to worsen as the pandemic continues. To address this pressure, healthcare finance executives will be forced to scrutinize their cost structures. By utilizing activity-based costing, healthcare organizations can get detailed cost analysis and improve their cost structures.

3. Consumerism and competition may lead to price war due to upcoming consumer price transparency

Since the U.S. government’s emphasis on increasing price transparency in healthcare, the patients will soon gain their buying power in the open healthcare market. The price war may start between the healthcare providers as consumers will have the ability to shop around and compare for lucrative procedures such as knee replacements. Healthcare providers should use ABCs to get an accurate picture of their underlying costs if this transparency forces them to cut charges to meet the competition.

It is time for healthcare organizations to embrace the model of activity-based costing due to the impacts of value-based care, price transparency, and pandemic. With the help from ABCs and the right financial system, even smaller hospitals, physician groups, and PAC providers should be able to make this transition without undue strain on their resources.

BTerrell Group works with healthcare companies to strengthen and simplify all aspects of their financial health. We helped Epiphany Dermatology seamlessly manage growth from seven locations to 50 clinics across 10 states with the cloud-based financial management solution - Sage Intacct. Check the case study and learn more: Epiphany Dermatology - Case Study.pdf.

Let’s make sure you have the right systems to best manage your organization. Contact us at 866-647-2611 and download the complete “Activity-Based Costing’s Time Has Come".

Tags: healthcare, sage intacct

Streamlining Consolidations for Multi-Entity Healthcare Organizations

Posted by Brian Terrell on Fri, Feb 26, 2021

Four ways cloud financial management software keeps finances healthy

20210226_Healthcare Blog

Integrating a healthcare organization’s multiple entities in a unified set of financials is challenging and complex. The traditional approach to consolidation combines old fashioned manual labor, semi-structured processes, and an unwise reliance on Microsoft Excel to bring together data and information. Unfortunately, even with the best efforts and communication, manual consolidations are time-consuming and error-prone — yet 58% of companies continue to use this method.

Healthcare organizations need a smarter way to consolidate their financial results, to support the industry’s fast pace and competitive climate. Cloud-based financial management software can be that better way, offering four areas of critical functionality that traditional, on-premises systems lack.

1. Scalable foundation enables automation
Healthcare firms often add virtual and physical entities to their corporate structures. However, on premises solutions struggle to add and manage new entities and across geographic jurisdictions. A cloud-based financial management system allows all business units to share the same system, same chart of accounts, same financial reports, and same master data tables, driving significant productivity gains. It also creates a shift in mindset and positions finance teams to add value to information, not simply report on information.

2. Agile processes help ramp up new entities quickly
A turnkey cloud financial management application gets systems and processes up and running quickly and can rapidly extend as new entities come on board. It also helps standardize workflows across entities, making it simpler to manage and monitor financial data.

3. Fully integrated consolidation processes
A cloud financial management system centralizes the setup and management of inter-entity relationships. When you rely on one single system to house organizational data, you can automate the elimination and consolidation entries, saving time and improving accuracy.

4. Clear insight
Cloud-based financials eliminate the gaps between the consolidation and the data. The result is real-time consolidated financial information — available at the push of a button.

The Vital Stats
The healthcare industry is in a constant state of flux. To succeed in a fluid marketplace, your organization must quickly scale to incorporate new entities, pivot to adapt to changing regulations, and swiftly adjust strategies and operations in response to performance trends.

BTerrell Group works with healthcare companies, ranging from small medical practice groups to more extensive combined healthcare operations, to strengthen and simplify all aspects of their financial health. Our recommendation for healthcare organizations is the cloud-based financial management solution Sage Intacct. Sage Intacct helps healthcare organizations save time, improve accuracy and grow their operations without increasing their administrative staff.

Together, BTerrell Group and Sage Intacct helped Epiphany Dermatology seamlessly manage growth from seven locations to 50 clinics across 10 states. And the organization was able to improve their overall efficiency in accounting and finance by five-fold, avoiding the cost of two to three employees. It’s this type of success that we strive for with every client.

We invite you to contact us at 866-647-2611 with your questions and download the complete Financial Consolidations for Multi-Entity Healthcare Organizations white paper.


Tags: healthcare, sage intacct

Healthcare Financial Management - What’s in Store in 2021?

Posted by Brian Terrell on Thu, Feb 04, 2021

The changes for healthcare in 2020 were significant and many. As a CFO, if you’re feeling a bit exhausted by change, you are not alone. As we enter the New Year, what challenges will healthcare organizations face?


2021 Predictions for the healthcare industry

The following three predictions three predictions were published recently by Brian Bogie, Director of Healthcare Industry Marketing at Sage Intacct.
1. Cost control will be paramount in 2021, and Activity-Based Cost Accounting will be business critical in a post-COVID world
2. Healthcare will adopt a Doordash model for delivery of their services: whether these “Hospital at Home” healthcare organizations will succeed depends on how they get paid – and from whom
3. HIPAA and security breaches will become a greater issue for healthcare organizations

Click here to read the entire article 

Familiar, perennial challenges still need to be addressed

The most common struggle for healthcare CFOs that we see is the challenge of consolidations for multi-entity, multi-location organizations. Healthcare CFOs must contend with:
• Expansion of facilities and service lines across regions and states
• The varying and changing nature of accounting rules as regulatory frameworks evolve
• Emphasis on growing the business through both organic new ventures or by acquiring others
• Increasing inter-relationships and inter-company activities between entities within the parent company

Download the complimentary white paper ‘Financial Consolidations for Multi-Entity Healthcare Organizations’ 

Addressing the challenges of consolidation using a single, cloud-based financial system tool can propel your healthcare organization forward.

And that’s where we can help – contact us to investigate how you could accelerate the integration of new entities; improve controls; and enjoy real-time consolidated results from across the enterprise at any time without waiting for period ends.

More than ever, CFOs find themselves data-rich, but time-poor. A truly integrated cloud-based financial system can automate the consolidation process, reintroducing quality and trust. Senior healthcare executives can view timely information with confidence which enhances finances credibility and opens the door to new opportunities to add value.


Tags: healthcare, sage intacct