Nigerian Healthcare Sector

Case Studies
Hospital Group - Strategic Performance and Market Analysis
Client
Challenge
• The client was in a challenging situation where solutions based on industry best practices were needed quickly.
• The client asked KPMG to analyse both financial and clinical processes of the hospital group in a short timeframe, as
the results were needed for a strategy discussion with board members.
’s Role
• KPMG identified opportunities for the client to turn the situation around and described the necessary steps towards that end,
including an implementation plan.
• In the beginning, KPMG set up an economic model - including cash flow projections – to develop different scenarios and
identify the financial gap between the calculated results and the necessary profits. The scenarios were built for optimistic,
realistic and investment-driven cases. The scenarios showed how strong the efforts needed to be, to turn the situation in
different surroundings.
• In the next step, KPMG identified all relevant parts of the hospital group that could be used to raise profit or to cut costs.
Thus, KPMG analysed all relevant medical and non-medical processes, for example the standardisation of medical treatments
or the medical coding and billing processes. KPMG described in detail what should be done in each of the action fields and
integrated the expected benefits in the economic model.
• KPMG described the necessary actions that need to be taken in the close future.
Benefits to Client
• KPMG developed pragmatic solutions that are highly valuable for the client. The client has started the implementation
process using KPMG’s help.
• One key outcome of this project was finding that processes related to medical coding were not sufficient; not all
treatments were billed with the adequate amounts. Moreover, the medical controlling function was not able to answer
questions from health insurance providers quickly enough, resulting in unpaid bills. Thus, the client asked KPMG to
reorganise all relevant processes inside the medical controlling function.
© 2016 KPMG Advisory Services, a partnership registered in Nigeria and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (‘’KPMG
International’’), a Swiss entity. All rights reserved. Printed in Nigeria.
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