Connected Planning – Strategic Planning Capabilities
With the unique challenges affecting healthcare, like those presented by the Covid-19 pandemic, an adequately distinctive solution needs to exist to support the strategic decisions that healthcare is being forced to answer and understand. To address the complex nature of the industry, Healthcare Providers are leveraging Alithya’s Strategic Planning solution to quickly forecast their financial statements, conduct scenario analysis around key business drivers, model potential facility expansions and strategic initiatives, and provide important insight into the future of the organization.
This allows finance personnel to perform sound financial analysis of alternative strategies and choose optimal solutions that provide meaningful and actionable strategic plans to the board and senior management.
Alithya’s Strategic Planning for Healthcare solution provides long-range planning and scenario modeling capabilities that help arm decision-makers with key insights into the organization’s financial future and establish their strategic plan.
Healthcare organizations utilize our Strategic Planning solution to create their baseline strategic plan, evaluate the impact of strategic alternatives, and understand their funding needs to support their baseline plan and each of the strategic alternatives under consideration.
It’s one of three pillars of Alithya’s Connected Planning for Healthcare (check out Mark Hite’s Connected Planning for Healthcare and David Pabst’s Capital Portfolio Planning for Healthcare articles).
Alithya’s solution provides healthcare organizations with the following key capabilities:
- Seamless integration between your operational planning data and your Strategic Plan – allowing you to quickly flex your Strategic Plan off the latest operating plan or forecast
- Generate a long-range forecast for individual service lines, facilities, and/or entities to determine the expected profitability of each organizational unit while analyzing how each unit impacts the financials of the consolidated organization.
- Create a strategic plan based on key revenue and cost drivers that can be easily sensitized for scenario analysis, such as patient and procedure volumes, revenue per unit, occupancy, payer mix, and staffing levels
- Go beyond the P&L to incorporate Balance Sheet and Cash Flow forecasting to provide insights to liquidity, funding needs, and credit statistics
- Analyze alternate outcomes and run scenarios on volumes, payer mix, headcount, capital expenditures, and inflation rates.
- Understand impacts of scenarios on key metrics used to manage the business like Days Cash on Hand, Debt Service Coverage, and Profitability metrics.
- Integrate and evaluate proposed strategic capital projects from Alithya’s Capital Portfolio Planning. Calculate the NPV, IRR, and Payback of capital projects to determine which investments should be funded. Run scenarios on including or excluding projects, delaying the project, or sensitizing input assumptions to understand the impact on consolidated financials and funding.
- Model potential acquisitions and layer them into the existing hierarchy to understand the impact across financial statements and key performance indicators.
- Seamlessly push results from the Strategic Plan into the Operational Plan to serve as targets for upcoming operational planning cycles.
Enabling all of this great functionality is Oracle’s Connected Planning technology that allows healthcare organizations to easily integrate the Strategic Plan with Operational Plans.
This bi-directional integration allows organizations to plan at the appropriate level of detail for each business process and connect them at the appropriate roll-up points within the Entity and Account hierarchies.
The seamless nature of the integration provides the capability to automate the refresh of the Strategic Plan with the latest Actual and Forecast data and thereby eliminate time-consuming manual maintenance.
Even more impactful than time savings, is the alignment created between strategy and operational planning. By seeding the Operational Plans with the targets set during the Strategic Planning process, organizations ensure that operational planners are informed and guided by the long-term corporate strategy when creating their plans for the coming year.
When taken together, Alithya’s Strategic Planning for Healthcare provides outstanding value and benefit to healthcare organizations of all sizes. Contact us to learn more about how we can help you implement Connected Planning to combine Operational Planning, Capital Planning, and Strategic Planning into a fully integrated and holistic solution.
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