A regional healthcare services group running 12 locations had $9M in revenue — and was perpetually short on cash. Despite being profitable, they were in a recurring cash crisis driven by insurance reimbursement cycles. We redesigned the entire cash flow architecture.
DSO: 92 → 31
Days Sales Outstanding Reduced
$1.8M
Working Capital Freed
$2M
Credit Facility Secured
Zero
Cash Shortfalls Post-Engagement
Illustrative example based on a real engagement. Figures are representative and anonymized to protect client confidentiality.
At first glance, this client looked healthy: $9M in revenue, growing 18% per year, serving patients across 12 locations in the Southeast. The P&L showed profitability. But the owner was fielding calls from vendors about late payments, had twice dipped into personal savings to cover payroll, and was holding off on opening two additional locations purely because of cash anxiety.
When we pulled the cash flow data, the source of the crisis was immediate: insurance reimbursement cycles were running 92 days on average. The business was essentially lending $1.8M to insurance companies at zero interest — money it had already earned but couldn't access.
Compounding the problem: there was no 13-week forecast, no credit facility, and no early warning system for cash shortfalls. Every cash crisis arrived as a complete surprise.
92-Day Average DSO
Insurance AR sitting uncollected for 3+ months on average
No Rolling Cash Forecast
Zero visibility beyond current bank balance
No Credit Facility
No revolving line of credit to bridge AR timing gaps
Unoptimized Billing Cycle
Claims were batched weekly instead of submitted daily
Switched from weekly to daily claims submission. Implemented a denial management workflow that cut re-billing time from 4 days to 24 hours. Established payer-specific follow-up schedules for the top 8 insurance payers.
Built a rolling 13-week cash flow model driven by payer reimbursement patterns, payroll cycles, and facility fixed costs. Installed a weekly 30-minute cash review cadence with the operations manager.
Structured and secured a $2M revolving line of credit against AR. Implemented a treasury protocol that sweeps excess cash into interest-bearing accounts and triggers line draws based on forecast thresholds.
DSO Compressed: 92 Days → 31 Days
66% reduction in days to collect on insurance AR
$1.8M Working Capital Freed
Cash that was trapped in uncollected AR is now in the business
$2M Revolving Credit Facility
Secured at favorable terms against AR collateral
Zero Cash Shortfalls Since Engagement
Client has maintained positive cash position every week for 14+ months
Opened 2 New Locations
Capital previously blocked by cash anxiety was deployed into growth
Client Outcome
"I was running a $9M business and borrowing from my personal account to cover payroll. GoGrowthAdvisors fixed the underlying cash system in 60 days. Now I have a 13-week forecast every Monday morning and a credit line I've never had to draw on. We've since opened two new locations."
— CEO & Founder, Regional Healthcare Services Group
We'll diagnose the structural issue and have a 13-week model installed within 30 days.
