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Reproductive Healthcare · Multi-Entity · Fractional CFO

How a Multi-Entity Reproductive Healthcare Group Navigated Liquidity Pressure and Recovered Vendor Overcharges With Fractional CFO Support

A practical example of what senior finance engagement looks like when a healthcare organization is under real financial stress — across three related entities, with cash below the minimum target across the entire planning horizon.

The Situation

Three related entities. Cash below the minimum target across the entire planning horizon.

The organization was a group of three legally distinct but operationally connected entities in reproductive healthcare. Each entity had its own financial obligations — but cash was managed collectively, and consolidated liquidity had fallen below the target minimum with no recovery in sight on the existing trajectory. Leadership needed a Fractional CFO who could engage at the transactional level, build the tools to manage the crisis, and advise at the executive level — across all three entities simultaneously.

Entity 1
Clinical Operations The operating clinical center — primary revenue source, medical staffing, and core service delivery.
Entity 2
Payroll & Benefits Centralized payroll and employee benefits entity, serving the broader group under an MSA structure.
Entity 3
Patient Collections Patient-facing collections entity — managing AR aging, payer mix, and revenue cycle across commercial, self-pay, and cryo storage.
Services Delivered

Four parallel workstreams, running simultaneously across three entities.

Each area addressed a specific dimension of the liquidity problem — cash visibility, cost structure, debt management, and payables — while the vendor audit ran as a separate engagement track.

01

13-Week Cash Flow Model

The core decision-making tool for the entire engagement. Built consolidated and per-entity, reconciled weekly against QuickBooks actuals, with alert thresholds tied to the minimum cash balance target.

  • Consolidated view across all three entities with intercompany transfers
  • Per-entity breakdown for entity-level decisions and obligations
  • Weekly reconciliation against QuickBooks to maintain accuracy
  • Minimum balance alerts to trigger proactive management actions
  • Rolling 13-week horizon updated each week with actuals and revised projections
02

Restructuring Support — RIF

When a reduction in force was identified as necessary, the work moved beyond HR to model the full financial impact — before decisions were made and after implementation.

  • Severance obligation modeling by role and tenure
  • Recurring payroll savings quantified and added to the cash flow forecast
  • Cash flow impact of severance outflows mapped against the liquidity runway
  • Pre- and post-RIF cash position compared to minimum balance thresholds
03

Debt Management & Banking Relationship

With both a revolving line of credit and a term loan in place, managing the banking relationship through a period of liquidity pressure required active tracking and direct engagement.

  • Revolving credit line and term loan tracked separately with maturity dates
  • Draw and repayment activity integrated into the 13-week cash model
  • Support through the renewal process, including financial documentation
  • Covenant tracking and compliance monitoring throughout the engagement
04

Accounts Payable Management

With cash constrained, payables management became a strategic function — not just a payment queue. Vendors were classified, prioritized, and managed with explicit plans tied to the cash forecast.

  • AP classified into active, modeled, and unmodeled categories
  • Vendor prioritization framework based on criticality and relationship risk
  • Payment plans negotiated and tracked for key vendors under pressure
  • AP aging integrated into the weekly cash flow model
Vendor Audit & Dispute Resolution

Line-by-line. Contract by contract. Credit by credit.

One of the most impactful workstreams of the engagement was a systematic vendor audit — going invoice by invoice, line by line, reconciling billing portal data against invoices on file and against the executed Statement of Work. The goal was to identify what the organization was being charged for and whether each charge was contractually defensible.

Invoice vs. SOW
Line-by-line reconciliation

Every vendor invoice was reconciled against the executed Statement of Work — matching billable items to contractual definitions, billing portal records to invoices on file, and identifying any discrepancy between what was charged and what was owed.

Contract interpretation
Parsing what "billable" actually meant

The SOW defined a billable "Communication" as a document that was created, saved as an image, and delivered. Documents that were generated but never delivered to patients did not meet that definition — and charges for those documents were challenged directly.

Service credits identified
Three categories of recoverable charges

The audit identified overage charges on stricken and undelivered documents; a quality-failure credit for thousands of patient emails sent with the client's name misspelled; and CPI-based rate increases that had been applied without the written notice required under the contract.

Dispute resolution
Drafted and led the vendor correspondence

All written correspondence and escalation were drafted and led directly on behalf of the client — including follow-up letters with quantified disputed amounts, documentation of the contractual basis for each dispute, and coordination of resolution meetings with the vendor.

Medical vendors
Lab and anesthesia vendor audits

The audit scope extended beyond the primary vendor to cover medical vendors — including lab and anesthesia billing — reviewing charges against contracted rates and service documentation.

Revenue cycle
AR aging and collections reconciliation

AR aging was reviewed by payer — commercial insurers, self-pay, and cryo storage — alongside medical vendor audits and collections reconciliation to identify gaps and prioritize recovery actions.

What the Engagement Produced

Financial clarity, recovered credits, and a decision-ready finance function under pressure.

The work did not just improve reporting — it directly affected cash position, cost structure, and the organization's ability to navigate a financially difficult period with better information and stronger controls.

Cash management

Real-time cash visibility across three entities

The 13-week model gave leadership a week-by-week view of consolidated cash, per-entity obligations, and distance from the minimum balance — replacing reactive management with a forward-looking decision tool that was reconciled against actuals every week.

Restructuring

RIF decisions made with full financial context

Before the reduction in force was implemented, leadership had a complete financial picture: the severance obligation, the recurring payroll savings, and how both affected the cash forecast against the minimum balance. Decisions were made with numbers, not estimates.

Vendor audit

Overcharges identified and service credits pursued

The line-by-line audit surfaced contractually unjustifiable charges across multiple categories — undelivered documents, quality failures, and improper rate increases. Each dispute was documented, quantified, and pursued in writing, directly with the vendor.

AP & banking

Payables managed strategically, banking relationship maintained

AP was restructured from a payment queue into a prioritized, classified system tied to the cash model. The banking relationship was actively managed through the period of pressure, with debt maturities tracked and renewal supported with proper documentation.

Why This Engagement Required More Than Bookkeeping

Multi-entity healthcare groups under financial pressure need a different level of finance support.

This engagement was not about monthly close or cleaner reports. It required a Fractional CFO who could operate across three entities simultaneously — at the transactional detail level and at the executive decision level.

  • Multi-entity financial complexity Three entities with intercompany transfers, an MSA structure, and separate legal obligations — managed as a consolidated group with visibility at each entity level.
  • Cash management under liquidity pressure When consolidated cash is below the minimum target, the finance function needs to operate as a real-time decision tool — not a monthly report.
  • Vendor audit at contract-interpretation depth Recovering overcharges requires reading the contract, parsing the SOW definitions, reconciling billing data, and leading the dispute correspondence — not just flagging a discrepancy.
  • Restructuring support with financial modeling A RIF without a cash flow model attached to it is a cost-cutting decision made without financial context. The model made the impact visible before the decision was final.
  • Executive-level reporting and decision support The Fractional CFO reported to the Executive Director — translating transactional-level financial data into operating decisions and board-level visibility.
QuintiniCFO Differentiators

What this type of engagement requires

  • Specialization in multi-entity groups — intercompany transfers, MSA structures, consolidated reporting
  • Ability to move between transactional detail and executive decision level in the same engagement
  • Cash management under financial stress — not just stable-state reporting
  • Vendor audit and dispute resolution — contract interpretation, billing reconciliation, written correspondence
  • Bilingual English / Spanish — for organizations operating in both languages
Next Step

Let's discuss your finance function.

In a 30-minute call, we'll review where your organization is today — whether that's liquidity management, multi-entity complexity, vendor issues, or monthly reporting — and discuss what level of support makes sense.

No commitment required. A practical conversation about your current situation.