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Nonprofit senior care center uses HIPAA-compliant Sage Intacct to improve gross margins by 50% and shorten monthly close by 90%
Bay County Medical Care Facility uses cloud financial management software to boost productivity by 50% and achieve 100% ROI in just five months
ATLANTA – June 26, 2019 – Sage (FTSE: SGE), the market leader in cloud business management solutions, today announced that Michigan’s Bay County Medical Care Facility leveraged Sage Intacct to improve the finance team’s productivity by 50 percent. Sage Intacct also enabled the organization to shorten its monthly close from three weeks to a day or two and develop 23 departmental dashboards for improved budget visibility. By using the robust software to transform its approach to spend management, the healthcare organization improved personnel utilization to cut labor costs by three to four percent, which contributed to reducing its variance between operating expenditures and revenues by half.
Bay County Medical Care Facility is a government owned and operated skilled nursing facility with 206 beds dually certified by Medicare and Medicaid. It provides 24-hour rehabilitation services, dementia care, and hospice care via an assessment team of nursing, dietary, social work, physical therapy, occupational therapy, speech therapy, restorative, and activity staff.
Previously, the organization outsourced its accounting function and relied on legacy on-premises back office systems to manage financials. After deploying Sage Intacct, a solution available in Sage Business Cloud, and building an in-house finance team, Bay County Medical Care Facility was able to restructure its chart of accounts to better support state mandates, adopt accounting best practices such as paperless purchasing and accounts payable workflows, and gain more accurate, timely financial insights.
“Sage Intacct’s dashboards make budgeting and planning much easier, especially for our supervisors who are adjusting to a brand new process of actively managing their monthly spending,” said Mike Regulski, Finance Director at Bay County Medical Care Facility. “We’re providing current financial data and budget-to-actuals for each department at a glance, which has made the organization as a whole more financially sound and accountable for the money we receive from taxpayers.”
After implementing Sage Intacct, Bay County Medical Facility’s finance team realized significant benefits, including:
- Department-specific visibility for greater accountability: Sage Intacct’s flexible reporting gives department supervisors a view into their granular payroll data, helping reduce overtime by 35 percent, cut overall spending by five to seven percent, improve gross margin 50 percent, and increase reporting accuracy 70 percent. All of this boosted the confidence of the board, which ultimately accelerated key capital improvements.
- Mature financial processes dramatically improved efficiency: Sage Intacct’s simple payroll uploads and integration with the organization’s clinical software for automated billing helped shorten its monthly close by 90 percent and increase overall finance team productivity by 50 percent.
- Better workload balance and greater strategic focus: Previous manual purchasing processes required so much energy that the team was only able to spend limited time producing financial statements for the board. Today, 70 percent more effort goes into managing the financials and other important projects like a facility-wide fixed asset inventory.
“Now that our supervisors actually see their financials on a daily basis in Sage Intacct and know how much money they have available to spend, they’re tightening their belts and taking cost control very seriously,” said Regulski. “As a result, we’ve cut the variance between our operating expenditures and operating revenues in half. Thanks to this declining variance, we’re able to expend our property tax levy income for much needed capital improvements, as opposed to spending it on operations.”
For more information on how Bay County Medical Care Facility uses Sage Intacct, view the full case study.
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