Six surgeons, an ASC, a PT clinic, and imaging. One set of books that explains nothing.
Orthopedic practices are multi-entity businesses. We give you the financial clarity to manage each one, and the whole picture.
A 4-minute test your accountant hopes you skip.
At a glance
Is This Right for You?
This service is for orthopedic practice owners who recognize these problems:
Need strategic financial leadership? Our Fractional CFO service for orthopedic practices may be a better fit.
What's Included
How We Work With Orthopedic Practices
Orthopedics-specific accounting that goes beyond reconciliation.
Ancillary Department Economics
- •Imaging (MRI, X-ray) department P&L with equipment and staffing costs
- •Physical therapy department profitability analysis
- •DME margin tracking (purchase cost vs billing vs collection)
- •Cross-referral revenue tracking between departments
Surgical Case Economics
- •Per-case implant cost tracking by procedure and vendor
- •Surgeon-specific case cost and revenue analysis
- •ASC vs hospital case profitability comparison
- •Global period revenue impact analysis
Partner Production & Compensation
- •Production tracking by surgeon and subspecialty
- •Compensation formula analysis and fairness review
- •Ancillary revenue allocation methodology
Workers Comp & PI Revenue
- •Workers comp receivable aging and collection tracking
- •Personal injury case financial tracking
- •Payer-specific reimbursement analysis
- •Cash flow impact of delayed payments
Results
What Orthopedic Practices Experience
| Metric | Typical Outcome |
|---|---|
| Implant cost savings | $186,000 annually through vendor renegotiation and standardization |
| DME revenue recovered | $73,000 from billing process corrections |
| PT department improvement | 4% to 13% margin through productivity optimization, adding $108K annually |
Case Study
See The System In Action
6-surgeon orthopedic group with ASC ownership, in-house PT, imaging center, and DME dispensing. Total revenue across all entities was $11.4M, but partner take-home had declined 15% over three years. The partners suspected declining reimbursements but the real problems were operational.
What we found:
- •Implant costs had increased 22% over three years without any vendor renegotiation. $186K in annual savings was available through competitive bidding and standardization
- •The PT department was operating at a 4% margin instead of the 12 to 15% benchmark because three of the six PTs were averaging only 8.5 visits per day against a target of 11
- •DME was dispensed on 35% of eligible visits but billed on only 22%. The 13% gap represented $73K in missed annual revenue
- •Global surgery period coding errors meant the practice was leaving $117K per year in separately billable post-surgical services uncollected
The results
$186,000 annually through vendor renegotiation and standardization
Implant cost savings
$73,000 from billing process corrections
DME revenue recovered
4% to 13% margin through productivity optimization, adding $108K annually
PT department improvement
“We were blaming the insurance companies for our declining income. Turns out we had $350K sitting in our own operations that we were not collecting.”
— Managing Partner, South
Common Questions About Accounting for Orthopedic Practices
Don't pay for reports. Pay for progress.
Take the 4-minute financial assessment—and find out if your books are helping or hurting your orthopedic practice.
The test your accountant hopes you skip.