Driving Operational Excellence Through a Comprehensive Financial Desktop Review

Background

A large, independent, physician-owned specialty practice has served its community for decades. Operating across five locations, the group offers a wide range of clinical services and in-office ancillary offerings and maintains a close affiliation with a major regional health system. While the practice had grown steadily over time, a recent change in physician leadership and practice management presented an opportunity to evaluate its financial and operational health through an objective lens.

The Challenge

With retirements on the horizon and several key administrative roles set to turn over, the group’s new physician leadership recognized the need for a clear view of the practice’s current state. Their goal was to strengthen operations, maintain independence, and support long-term growth. To do so, they needed a comprehensive understanding of the practice’s current performance and areas of opportunity, but they lacked the internal data and benchmarking necessary to evaluate it fully.

The Solution

KSM’s healthcare consulting team was engaged to perform a comprehensive financial desktop review – an intensive analysis of the group’s financial performance, operational processes, and organizational structure. The review evaluated:

• Staffing and production volume
• Coding distribution and revenue sources
• Patient access metrics and benchmarking
• Revenue cycle performance and denial trends
• Expense alignment and overhead analysis
• Ancillary service performance
• Employee benefits, retirement plans, and malpractice coverage

The engagement also included support from KSM’s information technology services team, which reviewed IT spending, cybersecurity protocols, and compliance practices, laying the groundwork for future improvements in infrastructure and reporting.

Through this in-depth review, KSM uncovered multiple areas of untapped potential:

• Productivity gaps: Providers saw fewer patients compared to peer benchmarks, reducing take-home pay and limiting both revenue and patient access.
• Ancillary revenue loss: Key services were underperforming due to process breakdowns, resulting in missed referrals.
• High denial rates: Inadequate processes were leading to frequent and costly claim denials, with nearly half a million dollars in annual impact identified.
• Under-optimized benefits: The group’s 401(k) and benefits plans lacked competitive cost structures and design.
• IT vulnerabilities: Outdated policies and limited security oversight posed compliance risks.

Armed with this data, KSM delivered a clear and actionable roadmap to help the group move forward with confidence.

The Result

The financial desktop review identified $4.2 million in untapped annual value. Equally important, the review unified the group’s physician leadership around a shared understanding of their challenges and opportunities. A full partner meeting generated enthusiastic engagement and support for making the recommended changes. The group has since enlisted KSM to design and execute a formal implementation plan to bring the recommendations to life.

This engagement illustrates the power of comprehensive, cross-functional insight, especially for physician-led practices navigating leadership transitions and positioning themselves for growth. With KSM’s guidance, the client gained clarity, uncovered millions in value, and took meaningful steps toward strengthening their future.

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