
Healthcare Delivery
Client
Our client is one of the largest medical imaging service providers across Australia and New Zealand, providing multiple imaging types across a wide range of sites.
Brief
The brief was to develop a rolling, budgeting & planning model of the consolidated business, with each site modelled on a dedicated basis and rolled up into regions which in turn were rolled up into brands.
The model suite and software implementation needed to support:
- bottom up modelling of revenue, in particular volume on a daily exam rate basis by exam type;
- detailed bottom-up build-up of salaries & wages by individual;
- detailed fixed asset register style forecasting of assets;
- locking down of budget and performing budget variance analysis each month;
- comprehensive consolidation at whole of business, brand, and region levels; and
- the output of daily budgets for volume and revenue to be loaded into Tableau.
Solution
Our solution comprised of multi-workbook suites for each brand where a workbook represented a region. The brand workbook consolidated the regions and presented fully integrated 3-way financial statements. A separate Group model consolidated each brand accounting for eliminations.
The region model was based around the following key modules:
- site – site revenue and expense forecasts, built bottom-up, allowing for weekend variances in volume-based assumptions with income statement reporting down to EBIT;
- payroll – build-up of all payroll related expenses by individual with pay increase related to various EBAs;
- fixed assets – individual build-up of each asset to forecast depreciation for existing assets and capex;
- import & export – robust import and export structure to transfer data between models; and
- reporting – board pack quality presentation of financial data and key reporting metrics.
Modano Benefits
When combined with the Modano software, the model designed allowed the client to self-service the following automated model development processes:
- monthly and annual roll-forward of historical-forecast model split;
- the locking down of budgets and performing variance analysis at all consolidated levels and at each site;
- adding a new exam type across the model suite;
- adding an exam type to a site;
- adding a site to a region;
- adding a region to a brand; and
- adding a brand to the entire model suite.
Along with the client being able to self-service the above processes, the model has been upgraded to include, forecasting of WIP assets, updates due to IFRS16 and higher-level annual model to allow for quick analysis of potential, site and brand acquisitions.
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