How a fast-growing medical group gained financial clarity and control 

Client background 

A $30 million medical practice group operating across 11 entities, including three active practices and seven real estate LLCs with 265 employees and 14 physician owners found that as they expanded into new markets, financial management became very complex. Leadership turned to Baker Tilly for healthcare finance transformation services to provide financial leadership and intelligence, streamline operations and reporting processes, improve financial processes and put scalable systems in place to support data-driven long term growth strategies.

The business challenge 

The group’s rapid expansion exposed significant challenges in its financial operations. Internal accounting resources struggled to keep pace with reporting and forecasting needs across 11 entities. Heavy reliance on cash accounting made it difficult to manage long-term planning, and leadership lacked the reliable insights needed for effective operational and practice management. 

Manual processes and inconsistent workflows further limited scalability. Without standardized systems or dashboards, reporting varied by entity, leaving budgeting and scenario planning reactive instead of strategic. The absence of automation meant valuable staff time was consumed by routine tasks and leaders lacked a clear, consolidated view of overall performance. 

At the same time, broader healthcare industry pressures were mounting. Rising costs, evolving reimbursement models and increasing regulatory demands highlighted the need for timely insights and efficient processes. To address these gaps, the group sought a solution that would not only resolve immediate reporting challenges but also create a foundation for sustainable growth.  

Strategy and solution 

Baker Tilly collaborated with the medical group to provide a combination of CFO-level expertise, operational and financial advisory services and hands-on support to strengthen the organization’s financial and operational foundation. The goal was to increase financial visibility and internal controls, build a sustainable physician bonus calculation model, streamline workflows and prepare the organization to continue to grow. 

Key initiatives included: 

• Transitioning from cash accounting to accrual accounting to improve accuracy. 
• Assessment of business requirements, followed by selection and implementation of an ERP system to automate financial reporting and forecasting. 
• Consolidating cash flow projections across all entities to provide a single, reliable source of truth for liquidity planning. 
• Designing dashboards that automated reporting and delivered real-time insights into performance. 
• Reviewing contracts and financial processes to uncover cost-saving opportunities. Reduce inefficiencies and strengthen internal controls. 
• Strengthened liquidity position by increasing cash reserves and decreasing reliance on the working capital line of credit. 
• Creating physician bonus models that simplified calculations and improved transparency. 
• Developing standardized budgeting processes and SOPs that established consistent, repeatable workflows across all locations. 

These initiatives enhanced financial accuracy and efficiency while introducing the sustainable structure required for ongoing business growth. By aligning operations with healthcare finance transformation services, the group gained better control over performance and positioned itself for continued transformation.  

Business impact 

The engagement delivered measurable improvements across the organization: 

• Month-end close time decreased by 30 percent, giving leadership faster access to accurate reports. 
• Forecasting accuracy improved by 50 percent, enabling more reliable healthcare financial forecasting for strategic planning. 
• Bonus calculation models increased clarity and reduced administrative burden. 
• Standard operating procedures streamlined workflows and reduced inefficiencies across entities. 
• Dashboards and consolidated reporting created scalable systems designed for data-driven decision-making. 

Looking ahead 

The medical practice group continues to work with Baker Tilly on additional projects, including refining forecasting models, strengthening budgeting practices and expanding dashboard capabilities. With stronger systems and processes in place, the organization is positioned to enter new opportunities and challenges and grow with confidence.