Maximizing Resource Utilization

A healthcare provider purchased another clinician’s practice in 2013 and has been steadily growing the business through a combination of enhanced services and greater operational efficiency. Having significantly increased the practice’s revenues from 2013 to 2015, the owner then concluded that it was going to be necessary to expand the practice’s facilities because the existing space was becoming too crowded.

Lagerquist Accounting & Advisory had been serving as the practice’s accounting and bookkeeping partner, and, in addition, the firm assisted the client with an analysis of the expansion option. Through this consultation, Lagerquist Accounting & Advisory and the client explored ways to increase the capacity to support growth within existing facilities. The key solution identified was to reconfigure operating hours and staffing models to improve utilization.

Historically, the practice had been scheduling patient appointments in the morning and performing surgeries in the middle of the day, before returning to patient appointments in the afternoon. Many healthcare practices utilize this model or select one or more specific days that are reserved for surgeries.

However, this strategy left the examination rooms unused during the mid-day period, thus leaving these resources underutilized. In addition, the staffing model the practice had been employing found most personnel working extended shifts (including the owner), which was leaving staff exhausted.

Lagerquist Accounting & Advisory recommended that the practice move to a new staffing model consisting of overlapping standard shifts, with the overlap occurring during the midday period. This would allow some of the practice’s clinicians and medical support personnel to attend to surgeries while others continued to hold patient appointments. It also ensured that clinical support staff were consistently able to be scheduled accurately within standard workweeks, which reduced overtime exposure and ensured that personnel were well-rested.

The results of this change included:

  • Better operational optimization
  • More effective staff utilization
  • Greater employee satisfaction
  • Increased revenues

In addition, the owner also shifted to the new schedule and experienced a reduction in late work hours as well, allowing him to spend more time with his family while also continuing to grow the practice.

As a result of this change, the owner was also able to postpone plans to acquire additional space or finance an expensive construction project to support expansion. While these plans remain in place for the future, the ability to continue growth without requiring immediate investment enhanced cash flow and enabled the practice to maintain a strong, balanced financial position.

Analysis to maximize resource efficiency is a key component in the Bookkeeping & Accounting and Outsourced CFO services offered by Lagerquist Accounting & Advisory. Learn more about Our Difference and meet Our Team.