Fractional CFO for Healthcare Practices
Insurance reimbursement lag, rising claim denials, and overhead that creeps past 60% before anyone notices. We fix the financial blind spots that keep medical, dental, and therapy practices from scaling.
The Healthcare Problem
Most practice owners know they're busy. Few know if they're profitable per provider.
Claim denial rates average 12-15% industry-wide, and each denied claim costs $25-118 to rework. Practices that don't track denial patterns by payer and code leave hundreds of thousands on the table. We've seen practices cut denial rates from 14% to under 5% just by identifying the three CPT codes driving 60% of their rejections.
Days in A/R above 50 is a red flag — but the national average sits right there. Every extra day your revenue sits in receivables costs you working capital. At $2M in annual collections, cutting DSO from 50 to 30 days frees $109K in cash. Top-performing practices collect in under 30 days with clean claims rates above 98%.
Overhead ratio is the silent killer. Primary care practices run 55-65% overhead, and the drift happens gradually — a new EMR license here, an extra admin hire there. One dental practice we reviewed had 62% overhead and didn't realize they were 7 points above the profitable median until we benchmarked them against 2,200+ service businesses.
Analyzed with the CLEAR Framework
Cash · Labor · Earnings · Accounts · Risk — the five pillars we evaluate for every practice.
Healthcare Industry Benchmarks
How do the best healthcare practices perform? Data from our analysis of 2,200+ service businesses.
Net Collection Rate
97-99%
Top performers. Below 95% signals revenue cycle problems.
Days in A/R
<30 days
Good benchmark. Over 50 days is a red flag per HFMA.
Overhead Ratio
55-65%
Primary care range. Specialty clinics: 40-50%. Dental: 55%.
Claim Denial Rate
5% target
Industry avg is 12-15%. Each rework costs $25-118.
Revenue per Provider
$500K-$1M+
Wide range by specialty. MGMA median for primary care.
No-Show Rate
<5% target
National avg ~5.5%. Every no-show = $200+ in lost revenue.
What Level Does for Healthcare Practices
Revenue Cycle Analysis
We break down your entire billing pipeline — from patient encounter to payment posted. You'll see exactly where revenue leaks: denials by payer and CPT code, aging buckets, write-off patterns, and collection rate by provider.
Overhead Benchmarking & Reduction
We map every expense category against practice benchmarks. You'll see where your staffing ratios, supply costs, and technology spend compare to top-performing practices — and get a specific plan to close the gap.
Provider Productivity Tracking
Every provider has different production rates, no-show patterns, and revenue per visit. We track profitability by provider so you can optimize scheduling, identify training gaps, and ensure each clinician is generating appropriate returns.
Payer Mix & Contract Analysis
Not all insurance contracts are equal. We analyze reimbursement rates by payer, identify underpaying contracts, and model the impact of dropping low-margin payers vs. renegotiating terms.
Cash Flow Forecasting
Healthcare revenue is lumpy — insurance payments lag 30-90 days, patient collections average 34-48%, and seasonal patterns shift with flu season, open enrollment, and year-end deductible resets. We build rolling forecasts so you never scramble for payroll.
Growth & Multi-Location Planning
Opening a second location or adding providers? We model the unit economics — buildout costs, ramp time to breakeven, incremental overhead, and the cash runway you need. We've analyzed practices from single-provider to 20+ location groups.
Bookkeeper vs CPA vs Level
| Capability | Bookkeeper | CPA | Level |
|---|---|---|---|
| Record transactions | ✓ | — | ✓ |
| File taxes | — | ✓ | — |
| Revenue cycle analysis | — | — | ✓ |
| Cash flow forecasting | — | — | ✓ |
| Benchmark against industry | — | — | ✓ |
| Monthly strategy calls | — | — | ✓ |
| Provider productivity tracking | — | — | ✓ |
| Payer mix optimization | — | — | ✓ |
| Growth & expansion modeling | — | — | ✓ |
| Understands healthcare operations | Rarely | Rarely | ✓ |
Your bookkeeper and CPA handle critical functions. Level fills the strategic gap between recording transactions and filing taxes.
We connect to the tools you already use
15-minute setup. Read-only access. Your data stays secure.
Healthcare Insights
Data-driven articles for practices who want to see the numbers.
Medical Practice Profit Margins by Specialty
Net margin data by specialty: primary care 15%, dental 30-40%, specialty clinics 25-40%.
Read more
5 Numbers Every Practice Owner Should Check Weekly
Collection rate, A/R aging, overhead ratio, no-show rate, revenue per provider.
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Why Your Practice Needs a Fractional CFO
8% median net margin. $80K in overhead drift on $2M revenue. The math on why a CFO pays for itself.
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Dental Practice Overhead: Where the Money Goes
55% average overhead, $300K+ equipment trap, and what separates 40% overhead practices from 60%.
Read more
Ready to see your real healthcare numbers?
We connect to your books, analyze your operations, and deliver a full profitability audit. Free audit included.
No commitment. Cancel anytime.