Transforming Performance Through Strategic Procurement and Cost Control at Bonamour Centers
The Challenge: Inflated Costs, Weak Cash Flow, and Decentralized Purchasing
The Bonamour Centers were under significant financial strain prior to Everest Management Solutions’ engagement. Inefficient vendor agreements, extended receivables, and elevated operational costs restricted cash flow and reduced profitability.
Across the portfolio, inflated vendor pricing, decentralized purchasing, and inconsistent A/R management limited visibility into true financial performance. These inefficiencies hindered reinvestment into staffing, care quality, and long-term growth.
Our Approach: Centralized Procurement and Revenue Cycle Accountability
Everest implemented a comprehensive financial optimization plan across all Bonamour centers, focused on vendor control, purchasing power, and revenue cycle accountability.
Key actions included:
- Conducting a complete vendor contract review and renegotiating pricing terms to achieve immediate cost savings.
- Implementing Everest Procurement systems to centralize purchasing and enhance transparency.
- Reducing Days Sales Outstanding (DSO) by 13 days through focused A/R management and improved billing practices.
- Initiating a transition to a new pharmacy partner to improve cost control and service consistency.
- Launching weekly revenue cycle KPI reviews to maintain fiscal discipline and drive leadership accountability.
This structured, data-driven approach improved financial visibility and operational control while preserving clinical integrity.
Results: $586K Net Income Increase and Improved Cash Flow
Within six months, Everest’s targeted interventions delivered measurable improvement across the portfolio:
- $586,000 increase in net income
- Reduced vendor costs improved both efficiency and service quality.
- DSO reduced by 13 days, strengthening liquidity and operational stability.
- Recovered funds enabled reinvestment into workforce retention and resident experience initiatives.
These results positioned the Bonamour Centers for continued financial health and sustainable operational growth.
Key Takeaway
Disciplined financial oversight and structured purchasing systems drive immediate, measurable impact. Everest’s financial optimization framework empowers organizations to regain control of cash flow, reduce costs, and reinvest in their people and care quality.
Looking to strengthen your organization’s financial foundation? Contact [email protected] to learn how we can help.