Finance department assessment boosts efficiency and achieves cost savings

Client background

A Senior Living Provider, operating four Continuing Care Retirement Communities (CCRCs) and two Skilled Nursing Facilities (SNFs), sought an assessment of its finance department. The assessment’s primary goals were to evaluate the current organizational structure, identify opportunities for process improvement, assess workload needs and quantify potential cost savings.

The situation

The organization experienced rapid expansion over the past five years, primarily through the acquisition of multiple facilities. This growth resulted in a decentralized structure in the finance department which created significant staffing issues—such as inconsistent roles and responsibilities across facilities—resulting in a financial system that wasn’t efficient or effective.

The solution & results

During the assessment, Baker Tilly identified opportunities to restructure the finance department, with a primary focus on job duties, responsibilities and workloads.

Key recommendations included:

• Job duty redistribution. Reassigning responsibilities to balance employee workloads.
• Centralization. Consolidating the finance department to a single corporate site.
• Technology upgrades. Recommending electronic accounts payable enhancements and potential changes to the organization’s ERP and EHR platforms.
• Strategic hiring. Advocating for a more experienced and knowledgeable controller to lead the restructuring effort.
• Communication enhancements. Proposing improvements to internal communication channels within the finance department.

Baker Tilly presented a detailed, restructured organizational chart and associated recommendations that:

• Consolidated finance operations. Streamlined the department into a unified structure.
• Optimized staffing. Placed appropriate and knowledgeable personnel in managerial roles.
• Clarified roles. Provided a clearer understanding of job duties and workflows.
• Enabled cross-training. Established a path for employees to be cross-trained in various areas as a best practice.

Although these changes didn’t result in significant cost savings opportunities, the changes positioned the finance team to more effectively execute its overall responsibilities. The changes also resulted in an elevated level of collaboration and teamwork which should help support future employee retention and recruitment efforts.

We’re here to help

For more information on how a finance department assessment can elevate your health care organization’s financial team, please contact us.