Citrin Cooperman
Client Portal Login
Connect With Us:  
text size text decrease text increase

Nov 17, 2016

Case Study of a Service Line Revenue Merger

Featuring Alan Badey, John Bryan, Aaron Cohen

Download PDF Version

Our professionals have assisted several health systems to prepare to contractually merge distinct service lines (“Service Line Revenue Merger”).  The Service Line Revenue Merger helps promote greater collaboration between the two organizations in a manner that is narrowly tailored to take advantage of the specific areas of greatest opportunity, while allowing each organization to maintain its overall independence. 

Pursuant to the Service Line Revenue Merger, each organization’s financial performance is measured over a base period, and the two organizations agreed to share any incremental gains in financial performance generated by the service lines.  Our professionals helped determine the scope of the service line definitions, analyzed the organizational cost accounting output for each organization to ensure uniformity and consistency of reporting between the organizations, determined the appropriate financial metric to be utilized to measure the financial performance for the service lines, and developed a financial sharing methodology between the organizations for any incremental improvement in financial performance generated by the service lines.  Furthermore, our professionals drafted the comprehensive financial section in the resulting business plans for each service line, which were presented to, and approved by, the board of each organization. 
Serving over 250 practices, outpatient facilities and hospitals gives Citrin Cooperman the ability to give advice based on real experience, but our size, as a regional firm, allows us to provide the personal attention with senior partners that your facility needs to stay ahead of the curve. 
Citrin Cooperman’s professionals have regularly assisted health systems to plan and implement physician alignment strategies, structure and operationalize new business ventures, execute hospital strategic partnerships, undertake financial analyses of new and existing health care businesses and business arrangements, and develop, monitor and audit compliance programs.  Our Health Care Industry Practice is well equipped from the traditional attest and tax standpoints, and we understand that planning in these areas leads to results.
Citrin Cooperman has a group of experienced professionals that are dedicated to working with clients throughout the health care industry serving the following types of health care providers: health systems and acute-care hospitals; specialty hospitals; physician practices; ambulatory surgery centers; home health agencies; skilled nursing facilities; hospices; rehabilitation centers; pharmacies; long-term care facilities; and outpatient clinics.

Advisory Services to Health Care Entities Include:
Guide Four Phases of Hospital Strategic Partnerships
  • Planning
  • Structuring/Negotiating
  • Execution
  • Implementation

Plan and Implement Physician Alignment Strategies
  • Acquisitions, Joint Ventures, and Contractual Arrangements
  • Operational and Financial Physician Practice Assessments
  • Physician Compensation Methodologies

Financial Analysis of New and Existing Health Care Businesses and Business Arrangements
  • Financial Feasibility Studies
  • Valuations of Health Care Entities and Arrangements Between Health Care Providers
  • Damages Computations for Litigation Matters Impacting Health Systems
  • Business Plans
  • Capital Planning

Financial Structuring of Tax-Exempt Bond Issuances
Structuring New Business Ventures to Reduce Health System Costs and/or Participate in Shared Savings and Other Population Health Management Contracts
  • Develop Financial Sharing Methodologies
  • Create Operational, Financial and Governance Models
  • Business Planning

Analyze and Improve Revenue Cycle
  • Revenue Enhancement and Reimbursement Consulting
  • Revenue Cycle and Cash Acceleration
  • Review and Improve Efficiency of Billing Procedures
Attest & Assurance Services
  • Audit, Review and Compilation of Financial Statements
  • A-133 Audits
  • Develop, Monitor and Audit Compliance Programs
  • Agreed-Upon Procedures
  • Forecasting and Projections
  • Risk Management, Internal Controls and Internal Audits
Tax Compliance & Tax Advisory Services
  • Federal, State and Local Income Tax Returns
  • Obtaining and Maintaining Tax Exemption
  • Section 501(r) Compliance
  • Tax-Exempt Bond Compliance
  • Captive Insurance Company Tax Compliance
  • Alternative Investment Tax Compliance
  • Unrelated Business Taxable Income Consulting
  • Organizational Structuring
  • Transfer Pricing Analyses
  • Tax Research and Analysis for Strategic Tax Planning
Aaron D. Cohen, JDis co-leader of Citrin Cooperman’s Health Care Industry Practice and has extensive experience providing financial and tax advisory services to clients in the health care industry.  He advises a diverse array of health care organizations, including hospitals, hospices, imaging centers, ambulatory surgery centers, and physician practices. Aaron can be reached at 301.654.9000 or at
Alan G. Badey, CPA, CGMA, is managing partner of the firm’s White Plains office and co-leader of the Health Care Industry Practice. He works closely with practices to develop their companies and translate complex issues into actionable plans. His expertise and experience in the field include a wide range of strategic issues regarding profitability consulting, mergers and acquisitions, and tax planning. Alan can be reached at 914.949.2990 or at
John P. Bryan, CPA, CGMAis a partner and co-leader of the Health Care Industry Practice.  He has more than 25 years of public accounting experience and specializes in providing consulting, tax and accounting services to physician practices and outpatient facilities in the health care industry. John provides advice and expertise in structuring partner and associate compensation, improving operating efficiencies, billing procedures, and structuring transactions. John can be reached at 914.949.2990 or at
Citrin Cooperman has worked with the health care industry for over 35 years, serving physician practices, medical facilities, hospitals, and other providers. Our firm’s deep experience in this industry allows us to assist clients in the ever-changing landscape of health care. For more information about Citrin Cooperman and to find how we can help you, please contact our firm’s Health Care Industry Practice co-leaders.