Design and Development of New Finance Organization

The Client

Duke University Health System is a not-for-profit business unit of Duke University that operates as an integrated health care system. The organization includes a full-service hospital system, ambulatory care and surgery clinics, primary care medical practice clinics, home health care services, HMO, continuing care providers, and other related facilities and services.

The Challenge

In 1999, BearingPoint successfully completed an SAP/R3 system implementation for Duke University Health System (Duke). However, the new health system’s financial management was certain that new technology alone would not result in the world-class finance organization Duke needed to remain competitive. Duke’s financial managers knew they needed to revamp their entire finance organization. Their goal was to build a finance organization that would equal the reputation of Duke’s medical system.

The Solution

Duke engaged BearingPoint to assist in designing and developing its new finance organization. To streamline processes for the client, BearingPoint and KPMG LLP worked together in order to create a solution specifically tailored to Duke’s needs.

In the design phase, the project team addressed the question of how Duke should be structured, including personnel and processes, roles and responsibilities, and technology.

BearingPoint then implemented the organizational plan, which included establishing service level agreements, creating standardized policies and procedures, and developing an accounting closing schedule, calendar, and responsibilities matrix for each person within the Duke Finance organization. We also provided interim staffing assistance to help get the new finance organization up and running more rapidly. The result was the creation of an integrated, self-sufficient finance organization capable of supporting the financial needs of a $2 billion health system. As a follow-on to this project, Duke engaged BearingPoint to improve the standard transactional reports available through the SAP system.

The Benefits

Among the benefits realized by Duke’s new finance organization:

• Refined standard and customized reports that provide decision makers with daily, weekly, and monthly statistical and financial information
• Improved service levels for the processes being performed
• Creation of an expertise center for the accounting, finance, and administration areas
• Formation of enterprise-wide standardized policies, procedures, and processes
• Organizational flexibility to ease assimilation during future acquisitions
• Maximization of Web and other technologies to enable links with consumers, physicians, hospitals, payors, and others
• Creation of meaningful performance indicators and measurements at all levels of personnel and departments