In this Business Profile, Robert Reid, CEO, of Intacct discusses healthcare providers' urgent need to manage growth, and how the right cloud financial management application can make all the difference for their financial leaders.
Tell me a little bit about your organization.
Intacct is the fastest growing provider of mid-market cloud financial management applications. Our entire company is focused on two things: helping finance departments become more efficient at managing day-to-day financial processes and giving them the insights they need to drive and manage growth and performance.
What are some of the major challenges you see affecting healthcare organizations today?
The biggest challenge has to be managing growth that is taking place against the backdrop of exceptional technological and regulatory change. Our healthcare customers are growing both organically and through acquisition. As they expand to multiple locations and try to achieve scale in such a dynamic environment, they need to not only make their financial operations more efficient but also quickly generate insights into financial and operational performance that will allow them to anticipate additional ways they can continue to optimize their operations.
Growth has put many finance departments on their heels. Although manual, spreadsheet-based financial reporting might have been tolerable for finance teams on a small scale when payment was largely driven by volume, it can be overwhelming as organizations today move into more sophisticated business arrangements and develop more complex ownership structures. Today information needs to be distributed to all the appropriate users in the organization, and viewed in real time, so they can make the decisions on how to take advantage of opportunities and minimize risks.
How is Intacct helping hospitals and health systems address these needs?
Intacct's cloud financial management solution helps healthcare organizations get ahead of the growth curve—not just catching up to growth, but recognizing opportunities to benefit from it. The technology does this in several ways: helping finance teams become much more efficient at managing core accounting processes, making it possible for organizations to capitalize on the cost savings opportunities that come from scale, and delivering real-time granular visibility into supply costs and labor costs. Users can align healthcare and financial management systems by creating and reporting on an unlimited number of key performance metrics, such as revenue by bed or by patient, by staff member, by payer, or any other key information you use to manage your organization.
In addition, healthcare providers working with Intacct can compare financial performance and operational ratios across locations quickly. Customized, role-based dashboards provide performance visibility by location or location groups, by doctor, by owner, or any other metrics. Easy identification of high performers coupled with access to rich reporting and analytics helps leaders quickly identify and share best practices, providing a solid foundation for performance improvement across the organization. What’s more, cloud-based management affords the ability to include additional entities seamlessly as the organization adds facilities, locations, or business units.
What are some key considerations for healthcare leaders when choosing cloud financial management solutions?
Healthcare leaders should pay particular attention to how well different solutions support the needs of multi-location providers, such as the rapid creation of consolidated financial statements—performance snapshots—not just at month's-end, but anytime. With an instant rollup view, providers can be more agile in adjusting strategies and operations in response to any downward trends in financial performance.
They should also look for financial management applications that can deliver the richest reporting capabilities without having to rely on external reporting tools or spreadsheets. For example, having an integrated view of financial metrics, operational metrics (e.g., available capacity), and key ratios (e.g, revenue per treatment, profitability per treatment) can make managing performance much more effective. And reports should be easy to understand at the field, operations, and joint venture levels.
What makes Intacct stand out in the market?
The technology environment in health care is undergoing rapid change, increasing the importance of solutions that can integrate well with each other. Intacct was designed to be a best-in-class financial management application—financial management is all we do. For that reason, we made rich integration capabilities a top priority, so customers know our systems will play well with other systems they use to run their business, such as billing and payroll. Unlike financial management applications built during the on-premises era, Intacct was built so healthcare providers can capitalize on our capabilities regardless of their applications and technology portfolio.
As healthcare organizations implement use of Intacct’s solution in their day-to-day operations, what advice would you offer so they can best set themselves up for success?
Healthcare finance leaders have a tremendous opportunity to influence and drive the overall success of their organizations. To do this effectively, they need to collaborate with other organizational leaders to identify the most critical measures of success, which are likely to be both financial and operational.
Once they’ve done that, finance leaders should make sure their financial management application provides not only real-time visibility into these metrics, but the ability to drill further into the numbers to identify the root causes of change in the performance of individuals, regions, or entities. Armed with this kind of information, they can help steer the conversations around strategic growth issues.
Are there any educational materials you would like to share to help providers in these efforts?
Healthcare organizations have used Intacct to drive improvements in the speed and efficiency of day-to-day financial processes, and to generate insights that have helped drive longer-term growth. You can read about these success stories in the following case studies:
Renal Ventures Management
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Publication Date: Sunday, June 01, 2014