A newly specialty outpatient polyclinic offers consultation, treatment administration, and same-day surgeries.
Situation: The client provides its services by partnering on a revenue share model with physicians to service clients. The model has resulted in accelerating the growth of sales and returns that the client wanted to inject additional capital to expand operations.
Complication: The client did not have visibility on drivers of profitability in terms of physician’s contribution or servicing being offered. Therefore, there was uncertainty on which services and specialty areas to invest in.
Approach: Cornerstone developed a detailed financial tracking model that identified sources of value creation by physicians and services offered. KPIs were set in place to track and monitor the company’s performance.
Results: The founder was able to expand the clinic’s operations in specific areas that allowed a faster trajectory to reach the break-even point and enhance the return on invested capital.