Alliant Consulting Aligning people, processes and metrics to meet your business goals.

REDUCE ADJUSTMENTS, WRITE-OFFS AND COLLECTION TIME for accounts receivables across 350 U.S. offices for this medical equipment company with $1.2 billion in annual revenue

Project Focus

  • Medical Equipment Supplier’s Patient Intake, Accounts Receivables and Collections departments
  • Assess revenue management operations, from intake through billing and collections, at representative locations
  • Identify collection performance barriers and opportunities
  • Design a high-performance revenue management model
  • Plan for and facilitate company-wide implementation

Client Gains: Financial and Operating Benefits

At four months following implementation:

  • 64% reduction in revenue adjustments
  • Cut suspended billing (>60 days as % of net revenue) by more than half
  • 42% decrease in accounts receivable >180 days
  • Reduced days sales outstanding (DSO) by 25%; four years later, original DSO >100 days had improved by another 25% for a total reduction of 50%
  • 25% improvement in productivity

Key Changes that Supported Client Goals

  • Refined revenue management and collections models and training program for immediate performance improvement
  • Used principles-based approach to operations model design, to achieve implementation success across the company’s diverse business environments and systems
  • Built culture of “turn-around” versus “deadline,” focused on avoiding backlogs and deterioration of accounts receivables – supported by quality reviews at key points to minimize delays and write-offs, and by positioning and training supervisors
  • Incorporated continuous process review and measurement reports to achieve ongoing improvements in revenue management, service, quality, and productivity
  • Tested the new model for validity in the poorest performing region – which then advanced to the 2nd best revenue management performance of 23 regions in just two months
  • Identified and implemented new model in the regions contributing 75% of the revenue adjustments and write-offs
  • Trained and coached 20 employees as change agents to implement the new model and perpetuate improvements throughout the remaining regions
Testimonials

"I also wanted to say thank you again. In case CJ didn't tell you I was promoted to Project Manager on Catalyst. And I have you, Linda, Rick, and Sherwin to thank for this. You all assisted me in seeing areas of improvement that I needed to focus on so I thank you all for that. I have grown and changed so much in the last year and you all at Alliant are to thank for this improvement in my life! So hats off to all of you."

Project Team Member - National Healthcare Provider

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