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Academic Medical Center Orthopedics Specialty Hospital Financial Modeling
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Academic Medical Center Orthopedics Specialty Hospital Financial Modeling

Client/Profile

Academic medical center

Challenge/Situation

To develop accurate projections of the financial performance of a planned orthopedics specialty hospital to be developed by the medical center in partnership with a market-leading orthopedics group. Hospital leadership also sought estimates of the impact of the new facility on the existing hospital.

Process

Veralon facilitated a financial modeling process that started by clarifying the likely organizational structure and financing plan for the new orthopedics hospital. We estimated volumes and revenues from historical data, building in growth projections.

We facilitated meetings of a project team, working closely with hospital operations staff to determine how the new facility would operate and to estimate detailed operating expenses. We then estimated the impact of shifted cases on overall hospital financial performance. Finally, our consolidated financial model integrated this information into a single estimate of financial impact. Alternative locations were considered, and their financial results were modeled.

Results

The hospital’s leadership had the clear financial estimates needed to assess its options, negotiate terms with the physician group, obtain board approval, and begin to plan the new facility.