Download the PDF and take this resource with you.
LEADING HOME HEALTHCARE PROVIDER CASE STUDY
Overcame reporting & finance obstacles to become a mid-market powerhouse in the competitive home healthcare industry
Introduction
In the wake of a complex, PE-backed, three-way merger, a major healthcare provider faced key talent gaps, segmented systems, and disjointed financial reporting processes, policies, and procedures. The company needed help in a hurry and called Embark to save the day.
Our Solutions
Embark's M&A Activity, Outsourcing & Team Continuity, Financial Reporting & Advisory, and Office of the CFO services were exactly what the company needed to get its financial reporting on track.
Index
The “Big Wins”
1. Assisted in the centralization of our client’s financial reporting function, providing a solid foundation for the complex merger that nearly doubled the size of the entity
2. Consolidated financial reporting processes allowed our client to essentially cut necessary financial reporting labor hours in half
Executive summary
After a PE-backed three-way merger, our home healthcare client quickly faced loss of key talent as well as segmented systems, reporting, and procedures between the previously separate entities. Embark provided critical team continuity and centralized the financial reporting function to help make our client a dominant force in the industry.
About the client
Our client is one of the United States’ largest home healthcare providers, with a growing footprint across the country. They have over 30,000 caregivers serving tens of thousands of patients.
Challenges & objectives
Our client hired a new CAO shortly after completing the merger. In addition, one of the controllers from the previous entities gave notice, exacerbating already significant skill and knowledge gaps across the accounting function. As a result, the new CAO immediately faced many challenges in shoring up the company’s financial reporting, driving a number of immediate objectives:
- Team continuity in key areas, particularly controller & manager roles
- Ensure all acquisition compliance reporting was in good order
- Centralize & streamline the reporting function across the new business entity
- Evaluate revenue recognition procedures according to ASC 606 guidance
- Gauge the financial reporting of the company’s accounts receivable
How Embark helped
This home healthcare company engaged Embark early in the transition, just after the new CAO started. Although our immediate role was to provide continuity in the critical controller and manager positions, the CAO also wanted our consultants to address the company’s pressing financial reporting objectives.
Embark was also able to guide the company’s financial reporting function through this critical period, all with minimal disruption to operations:
- Documented the day-to-day operations and policies for each of the three entities
- Ensured the new company adhered to the many complex, state-specific reporting regulations in their newly-expanded footprint
- Leveraged our Big 4 experience to create numerous memos that formally documented and aligned various reporting policies
- Transferred all of our documentation to the client's HQ to help create a more unified, centralized finance function
- Identified duplicative processes to streamline financial reporting
Our client was so satisfied with our initial engagement, the company continued using Embark’s services for ongoing needs throughout the merger transition, including:
- Serving as a knowledge bank for the three entities that the merged company relied on during and after the transition
- Training home office finance personnel on combining the processes of the three merged companies into a single, streamlined financial reporting function
- Handling all data validation and mapping for new system implementation
- Documenting all processes and procedures, identifying areas for improvement and triaging them when necessary
- Reconciling its balance sheet accounts post-system implementation
- Providing guidance and helping align the three companies into a single new ERP system
- Supporting the first-year audit by leading external reporting and handling all communication with the auditors
Results: a bright future for the client
As a result of our work, the company was able to leverage its expanded operations directly into market share based on reliable, accurate, and compliant reporting. They are already one of the largest home healthcare providers in the country, and has its sights set on even greater market share and expanded services. At Embark, we’re proud to help our partners reach their potential, using our Big 4-based experience to help them thrive.
Related resources
The Definitive Guide to Financial Audit Preparation
Embark's Definitive Guide to Financial Audit Preparation is the ultimate playbook for navigating and leveraging external audits. Tailored for CFOs trying to fortify their organizations and harness audits for strategic advantage, our guide is filled with practical advice, best practices, and unique insights into the audit process.
The Roadmap to Implementing SOX Compliance
New to SOX? Get our comprehensive, but concise guide to implementing SOX compliance. Learn how to properly define materiality, the importance of adequately scoping line items, identifying needed controls for section 404, and more.
The Blueprint For Building a Data Culture in the Office of the CFO
Embark’s blueprint details every step you’ll need to build a dynamic, insightful data culture, even if you’re starting from scratch. Filled with tips and techniques from the frontlines of finance, our practical, hands-on approach to building a data culture is fast, efficient, and effective.
Tell us what you need help with
All Embark solutions begin with a conversation. Fill out this form and one of our advisors will follow up with a call. We can then better understand your needs and craft the right solution for your organization.