Medical Clinic
Financial Clarity and Cash Flow Management
Client Background
This client is a Florida-based dermatology practice providing both medical and cosmetic services. They were planning expansion but had unclear financial insights on which services were driving profits.
Challenges
- Revenue confusion: Lack of distinction between medical and cosmetic revenue.
- Rising costs: Payroll, supplies, and overhead were growing faster than revenue.
- Margin visibility: No insight into which services were most profitable.
- Expansion uncertainty: Unclear if financials supported adding providers or new services.
How We Helped
- Revenue segmentation: Reorganized bookkeeping to track medical vs. cosmetic services.
- Financial dashboards: Created easy-to-read dashboards showing service-level profit margins.
- Pricing analysis: Reviewed service pricing and implemented strategic adjustments for higher-margin services.
- Fractional CFO support: Provided strategic guidance on hiring, marketing spend, and expansion.
- Cash flow planning: Forecasted revenue and expenses for expansion scenarios.
Results
- Identified two low-margin services to adjust pricing, improving overall margins by 8%.
- Expansion plan validated with clear financial forecasts.
- Streamlined payroll and supplier expenses reduced costs by 10% annually.
- Practice could confidently hire new providers and expand services with minimal risk.