Previous solution: CODA Financials
Results with Intacct:
- Saving more than $500,000/year in staff and IT costs
- Freed 8 days/month by automating invoicing, A/R and reporting
- Shortened monthly close by nearly 40%
- Improved positive cash flow by $125,000
Searching for adaptable financial software to meet evolving needs
University Clinical Health (UCH) is a nonprofit organization that offers quality primary and specialty healthcare from over 100 renowned physicians who also serve on the faculty at the University of Tennessee College of Medicine. Over the past few years, UCH has undergone a significant transformation effort, spinning off several companies and shifting its focus towards multi-specialty, multi-facility practices. During this evolution, the organization struggled to adapt its archaic mainframe accounting system to UCH’s changing needs, and decided to find a more flexible, cloud-based ERP solution.
The finance team wanted software that would provide better transparency into UCH’s multi-entity, multi-location financial data, require less manual data entry and IT resources, and support paperless workflows. In addition, the organization needed a bestin-class solution that could connect with its payroll and integrated care software. “We evaluated NetSuite and Unit4 Financials before settling on Intacct because it was by far the most flexible and complete system,” said Timothy Carlew, controller at University Clinical Health. “Given our constantly shifting business environment, we knew we’d benefit greatly from Intacct’s easeof-use and the simplicity with which it can adjust to our evolving requirements on the fly.”
Modern financial workflows produce massive cost savings
UCH worked with Intacct implementation partner LBMC Technology Solutions to set up Intacct to meet its needs and execute a painless conversion. LBMC helped UCH significantly improve reporting and tracking of its multiple locations and entities with Intacct. In all, UCH estimates that Intacct is saving its organization well over $500,000 each year from reduced staffing and IT costs. For example, the accounts payable process is dramatically streamlined now that staff at each of the 12 clinic locations can easily enter their own invoices and expense reports into the cloud-based software. As a result, UCH’s corporate finance team was able to reduce headcount by 1.5 full-time equivalents. In addition, the finance team used Intacct’s cash management capabilities to schedule payment timing more strategically, which immediately improved positive cash flow by $125,000.
The organization improved revenue management by importing patient charges from its GE Centricity software into Intacct, as well as using the system to automatically generate contract-based invoices for partner facilities. This eliminated a manual, Excel-based process of preparing, tracking, and aging contracted revenue, which saves UCH’s accountants six days each month. The organization also leveraged Intacct platform services to configure a replacement for its contract management database. By housing all vendor, customer, and employment contracts in Intacct, as opposed to maintaining a separate system, the finance team can more easily manage renewals and compliance.
Intacct’s powerful reporting capabilities also streamlined UCH’s multi-entity reporting and consolidations process, cutting three days out of the monthly close and increasing confidence in the data. Now that the team is no longer manipulating data in Excel and emailing reports out to internal stakeholders and the board of directors, they have cut days out of the time spent on preparing and distributing reports.
Real-time business performance insight drives agility
UCH uses Intacct to produce monthly profit and loss reports by department, by specialty (i.e. for specific services within the ophthalmology department), by hospital, and by physician. With this granular view into profitability, the finance team can clearly identify areas for improvement, which is especially helpful during contract negotiations. Having visibility down to the physician level also allowed the organization to change its compensation plans and departmental bonuses, fostering greater accountability for individual performance. In addition, UCH pulls Relative Value Unit (RVU) benchmarks from U.S. Medicare into Intacct and now reports on important operational metrics, like sales per RVU, right from the financial system.
“It’s so helpful that we can drill into a deeper view of our data as needed, or roll everything up to a very high-level picture of our financials for board meetings–all from the same reports,” shared Carlew. “We also love our executive-level dashboards, which include impactful Intacct Performance Cards that display flash metrics to help our CEO and executive director monitor how we’re doing with cash flow and gross margin from week to week, month to month, and year to year.”
About University Clinical Health
University Clinical Health (UCH) is a not-for-profit clinical practice organization with more than 100 renowned physicians offering services in 13 areas of practice. Its physicians serve on the faculty at the University of Tennessee College of Medicine and work in hospitals, clinics and private practices throughout the Memphis metro area.