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