Telehealth Solutions

Immediate opportunity for a $50,000 increase in revenues

Overhauled the collections process and have collected on over 65% of Unpaid Invoices in 3 months

The Situation

A Search Fund completed the acquisition of Telehealth Solutions Company with healthy margins and sound growth metrics. The business was originally owned and operated by clinicians. While they grew the business significantly, the original owners had little finance and accounting experience. Financial processes were largely manual and pieced together. The acquirer focused on establishing a streamlined financial operation that would allow for scalable growth as the new owner looks to ramp revenue and acquire similar businesses.

The Result

In the initial onboarding period, Compass East focused heavily on the revenue cycle process. Through the development of a contract management tool and review of existing customer contracts, we found that the Telehealth Solutions Company had not invoiced for agreed-upon annual increases. On average, there was a 2.5% increase in billings per contract resulting in approximately $50,000 of incremental revenue. This generated a positive ROI on the annual cost of Compass East in the first month of our engagement.

The new invoicing process also cut down 30 hours per month of administrative time for the original founder, now the Telehealth Solutions Company President, freeing her up for much higher value-added activities that aligned with her healthcare expertise. After overhauling the collections process, Compass East collected 65% of 60-day past due invoices within 3 months, totaling over $100,000.