Situation and Challenge
A fortune 500 health care provider was in the process of developing an EHR (Electronic Health Records) system. Initial development completed, management reached a critical decision point: either commit to the project with additional funding and resources or abandon the venture. A "go-no-go" decision was required.
Management needed a financial forecast (pro forma) to test assumptions and to determine if the project would meet internal ROI hurdles. The new venture required dedicated teams in sales, marketing, field installation, training, software development, help desk, business development and management.
We developed a five-year financial projection for the business. The model was built to test various revenue scenarios, including pricing levels and structures (up-front and on-going) as well as market penetration.
We projected business profitability, ramp up costs and breakeven. We were able to determine the probable ROI based on a range of pricing and market penetration assumptions, bracketing the possible outcomes within the range of best and worst case scenarios.
The pro forma provided management with key operational and financial milestones from which to manage the business. The company decided to proceed with the venture and it has been successfully implemented.
As we helped this client point their business where it needs to go, we can do the same for you.
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