Healthcare

Adaptive Planning provides healthcare organizations with a Corporate Performance Management system that includes multi-dimensional, driver-based modeling capabilities, and integrated P&L and cash flow planning and reporting.

Planning & Reporting Challenges

Today’s healthcare organizations face serious financial challenges, stemming from uncertain patient volumes, declining reimbursement in a complex multi-payer system, and increasing government regulation and costs. They require a planning and reporting system that delivers accuracy, data integrity, and the ability to frequently reforecast and perform what-if analyses.

Healthcare revenue planning and reporting is typically volume-driven, and associated with multiple dimensions, such as type of patient (e.g., daily care, inpatient, outpatient) or type of service offered. Other variables might include length of patient stay, patient insurance type, number of daily visits per physician and average rate per physician encounter.

Revenue planning must be integrated and balanced with the cost side of planning, in order to forecast realistic contribution margins and profitability. Staffing requirements are often tied to the volumes in the revenue plan. Employee cost planning needs to be detailed, typically by employee type, and may include shift differential and overtime. Other spending also needs to be tied to sales, e.g., medical supplies, or vaccines. Allocations of overhead departments or locations may be needed to drive costs into other facilities.

Spreadsheet-based systems are inefficient, error-prone, and fundamentally unsuited for the complex, dynamic planning and reporting required by healthcare organizations.

The Adaptive Planning Solution

Financial planning and analysis in healthcare organizations requires a flexible budgeting, forecasting, and reporting solution with the ability to:

• Use driver-based, integrated planning and reporting for revenue, expenses, and cash flow
• Report on key metrics necessary for decision-making, and on variance detail for analysis
• Roll out to a large number of users across multiple locations; consolidate data automatically and accurately
• Establish a culture of collaboration and accountability among planning managers
• Allow frequent re-forecasting and what-if scenario analysis
• Allow frequent re-forecasting and what-if scenario analysis

Adaptive Planning has been successful helping dozens of healthcare companies streamline their planning and analysis, because it has allowed them to:

• Plan revenue across multiple dimensions (e.g., patient type, procedure type, clinic type, location, hospital department, etc.)
• Perform detailed staff planning across multiple categories of employees, such as physician types
• Use driver-based modeling to capture interdependencies between revenues and headcount and other costs, and between accounts receivable and sales
• Model integrated P&L, balance sheet, and cash flow statements
• Analyze what-if scenarios for varying patient volumes, staff levels, payor types, etc.
• Use dashboards to analyze key business drivers
• Use reports to perform variance analysis, including drill-down into underlying transaction detail from other systems
• Distribute report books via email for financial presentations such as board packages and executive reporting
• Improve accuracy and turnaround time in the planning and reporting process, and conduct frequent re-forecasting

Furthermore, Adaptive Planning’s Software as a Service (SaaS) model is a natural fit for the healthcare industry, for the following reasons:

• It provides exceptional value. Keeping spending down is important for any healthcare organization. Adaptive Planning’s SaaS solution provides a five-year ROI of up to 650% compared to using spreadsheets, and has a total cost of ownership that’s up to 77% less than on-premise alternatives. And it’s low-risk, with the options of free trials and phased implementations.
• There is no IT involvement required. As a SaaS solution, no new hardware, software, or IT support is required for initial implementation or ongoing maintenance. As a result, unlike with on-premise software, finance can move forward without needing to rely on an already over-burdened IT organization.
• It’s intuitive and easy to use.Adaptive Planning’s SaaS infrastructure and CPM engine save time and effort with built-in intelligence. Customers can avoid the wasted time associated with spreadsheet-based systems. And its web-based, highly-customizable, Excel-like interface is easy for all types of employees throughout a company to learn and use.

Select healthcare customers include: