Quality of Revenue
Since revenue is a critical component to any quality of earnings analysis, VMG Health has created a specialized Suite of Services related to quality of revenue.
Financial & Productivity Analysis
- VMG works directly with the business to compile and model raw data to present a clean and concise detailed historical look of its operations
- VMG conducts discussions with business management to determine normalization adjustments to present a Normalized Base Year – please note that no projections and no value indication are provided
Schedules included:
- Provider information summary
- Historical payor mix & modality mix based on volume, charges & collections
- Historical balance sheets & income statements
- Normalized income statement
- Revenue trend analytics – Volume & reimbursement growth summary and by physician
Revenue Testing & Accrual Basis Estimate
- VMG performs a cash waterfall analysis, reviewing cash collections based on date of service and date of collection
- VMG analyzes the business’ historical cash collection distribution and extrapolates the findings to determine the estimated revenues for the trailing twelve month (“TTM”) period
- Revenue is adjusted and presented on an accrual basis based on VMG’s findings
Additional schedules included:
- Cash waterfall analysis detail over trailing 36 month period (if available)
- Summary cash collections distribution
- Summary of methods applied to determine accrual basis revenue