Healthcare: The Practice Management Organization’s (“PMO”) CFO
If you’re a CFO in the healthcare industry, you know the drill. There are tremendous opportunities. But there are also tremendous challenges. Successfully operating through them sometimes takes an army. But it can also come down to making some smart, deep, and meaningful moves.
Increasingly demanding private equity sponsors, boards, and CEOs; needing to quickly develop and balance operational efficiencies; dealing with outdated and disparate technology in a world of cyber threats; and meeting clinical and regulatory demands are just some of the challenges facing healthcare CFOs.
Equally, as a CFO of a practice management organization (“PMO”) focused on acquisitive growth, you could be finding yourself dealing with these challenges amid serious organizational headwinds, such as:
- Mid-size organizations that are trying to negotiate their way through increased competition, and potentially fatal regulatory changes.
- Small, fast-moving organizations that are speeding their way through growth and learning everything on the fly.
- Behavioral and cultural risks inherent in executing an aggressive acquisition strategy
At Element78, our healthcare services team, led by Managing Partner, John Signa, works with private equity groups and their PMOs to manage change. We have partnered with a number of private equity groups and PMOs in the dental, dermatology, vision care, and health and wellness industries, serving as a trusted advisor and interim CFO.
We’ve helped them find success across these challenges by:
Meeting the Sponsors Demands with a Sequential Approach
As PMOs are gaining ground as a key target for private equity groups, it’s important to understand how to make these complicated organizations a success amid the complexity of the healthcare industry.
Through successfully partnering with private equity groups and PMOs, particularly dental service organizations (DSOs), to provide transaction advisory services prior to closing and interim executive leadership through the office of the CFO post-closing, Element78 routinely sees that the following critical elements have to be aligned to be able to manage and drive change:
When a new PMO is established to serve as a platform for executing on an aggressive growth strategy, the CFO must have the right people in place who can deliver value each day and foster a culture of continuous improvement and growth.
The right processes must be identified, hammered out, and put in place so that each area of the organization can move efficiently and effectively towards the common goal of growth. Having the right processes in place is critical to the successful integration of new practices.
The right systems and technologies must be in place to enable the organization to move at the lightning-fast pace required today, as well as meeting the increasing demands for accountability, data protection, and coordination.
While it would make it a lot easier optimizing across these areas sequentially, in reality, the CFO of a PMO needs to be optimizing each of these areas through a series of intertwined, coordinated steps.
Want to find out more? Email John at email@example.com.