In a skilled nursing facility (SNF), decisions are made every day based on the organization’s financial position. From staff scheduling and overtime, inventory of medical supplies, dining services and more, every decision must be balanced with the need to manage costs while providing quality care. What happens if those decisions are made without knowledge of your true financial position? Operating blindly without accurate financial data is a serious risk that can lead to major and sometimes irreversible consequences, including crippling debt or inability to continue operating.
Financial reporting and analytics are critical to the successful management of a SNF, but healthcare providers are not immune to the growing crisis that is affecting businesses nationwide—the finance and accounting profession talent shortage. Nearly 75% of CPAs are approaching retirement age and the number of college graduates entering the accounting field remains significantly low. The competition for a shrinking workforce is intense not just because of increasing costs, but because today’s healthcare accounting professionals must possess a more diverse set of skills. They must report financials on time, prepare thorough and accurate budgets and forecasts, manage cash flow, maintain healthy vendor relationships and successfully navigate financial audits—while keeping up with industry financial regulations. They must understand diversified payers, payment methodologies, lender requirements, data analysis and new accounting systems/technologies. Sounds exhausting, right? When accountants are overwhelmed or underqualified, errors can easily happen.
Signs You Could Benefit from Outsourced Accounting
There are many advantages to outsourcing accounting functions, especially if you are a SNF that is struggling to get quality financial information in a timely manner. Every organization’s accounting needs are different, depending on your circumstances, challenges and budget. To get an idea whether your facility could benefit from outsourcing all or part of your accounting functions, ask yourself the following questions:
Is your cash flow positive and predictable?
Does your accountant maintain timely and reconciled cash position reports?
Are you receiving timely monthly financial reports?
Is financial data interpreted to include actionable insights?
Do your department heads participate in the budgeting process and have an opportunity to review timely financials?
Are you adhering to GAAP accounting principles?
Are you free of fines and penalties for late or missing filings, poor audit outcomes or other infractions?
Are you meeting the requirements from lenders, mission-based parent organizations and audit agencies?
Is there a financial expert in-house with the right knowledge, skills and experience?
Do you feel confident when making financial decisions for the organization?
Answering no to any of these questions is a sign that it may be time to consider outsourcing.
Benefits of Outsourcing with Richter
At Richter, we take pride in our ability to add integrity to your business through proactive financial management. We focus on the specific needs of your organization and will work together to develop a plan that delivers documented results for long-term financial success. Benefits of our partnership include:
Reliable expertise: With everything on your plate, you shouldn’t need to worry whether your in-house team has the qualifications and bandwidth to handle evolving accounting responsibilities. Richter’s qualified team of experts offers more than 50 years of collective healthcare-specific accounting experience, and we will never leave you stranded.
Greater efficiency: An outsider’s perspective on your processes and workflows can help you streamline operations, reduce administrative burden, allocate resources more effectively, and make better financial decisions.
Enhanced safeguards/controls: A third-party independent team provides checks-and-balances that will help you mitigate risks associated with fraud and asset misappropriation. Expert oversight ensures financial records are accurate and in compliance with financial regulations and standards.
Cost savings: Not only are labor costs expensive, but there are no guarantees that employees will not jump ship if a better offer comes along. Outsourcing eliminates the costs associated with recruiting, hiring, onboarding and training your workforce, as well as the overhead with office space, equipment, benefits and more.
Customized services: We cover the full spectrum of revenue cycle management (RCM), making it easy to meet your needs at every point along the continuum of care—whatever your clinical, financial, accounting and revenue cycle challenges may be. Through a brief discovery call, we can identify the right engagement for your organization.
Richter Accounting Solutions for SNFs
With decades of experience and industry involvement, our accounting team understands the healthcare landscape and the financial challenges your SNF faces. We offer the full suite of accounting services, including:
General ledger, account reconciliations and audit work papers
Accounts payable management
Treasury management
Monthly financial statement preparation
Budgeting and forecasting
Risk management & internal controls to safeguard assets and protect against fraud
Financial reporting, analysis and commentary to explain complex data
Accounting software and technology integrations
When you are unable to get reliable financial information when you need it, running a business effectively and profitably becomes very challenging. Now is the time to reach out to a qualified partner with specialized knowledge and a strong reputation within the industry. To learn more about Richter’s comprehensive accounting and RCM solutions, contact us here or call us at 866.806.0799.
