Precision Medical has acquisitions down to a science. Over two years, amidst unsettled supply chains, it acquired eight companies and now counts 16 subsidiaries. Along with post-operative and other braces, the company sells mobile devices that help prevent and identify deep vein thrombosis (DVT), a condition caused by blood clots that is responsible for hundreds of thousands of deaths annually.
Precision Medical
Rocklin, Calif.
Wholesale Distribution, Manufacturing
250-500
$45 million
16
Excel, DreamingCode, QuickBooks, Google Sheets
Xero, Zoho
“Our products save lives. But margins are thin, and we must do more with less. Our NetSuite systems save us crucial time we used to spend on redundant processes.” Bruce Capagli, Chief Operating Financial Officer, Precision Medical
“Our products save lives. But margins are thin, and we must do more with less. Our NetSuite systems save us crucial time we used to spend on redundant processes.” Bruce Capagli, Chief Operating Financial Officer, Precision Medical
Annual revenue at Precision Medical went from $20 million prior to its acquisition spree to $45 million and was on track to see $75 million the following year. A rise in average order value (AOV) and billing efficiency fueled much of the success. Since 2019, the business acquired multiple subsidiaries, including several billing companies. Bringing those billing functions in house resulted in a nearly 200% increase in reimbursements average revenue per order.
Precision Medical was paying 8% of revenue to outsource its billing functions, while best-in-class outfits can get closer to 2.5-4%. So, the company began making acquisitions focusing partly on billing businesses it already worked with, as well as businesses with complementary sales teams and competitors.
The acquisitions helped cut the company’s cost of billing in half. By analysing historical reimbursement data in NetSuite, Precision Medical was able to identify product data trends and usage, then adjust its strategy to bring in roughly $2.5 million in additional revenue.
With NetSuite, Precision Medical created onboarding processes for its acquisitions that allows it to bring small organisations into the company in as few as 15 days. Additionally, NetSuite has strong integrations with third-party medical billing software and the team plans to enable two-way information sharing so information that’s updated in the billing programs is also updated in NetSuite.
LEARN HOW
CLOUD ERP CAN
STREAMLINE
YOUR BUSINESS.
Annual revenue at Precision Medical went from $20 million prior to its acquisition spree to $45 million and was on track to see $75 million the following year. A rise in average order value (AOV) and billing efficiency fueled much of the success. Since 2019, the business acquired multiple subsidiaries, including several billing companies. Bringing those billing functions in house resulted in a nearly 200% increase in reimbursements average revenue per order.
Precision Medical was paying 8% of revenue to outsource its billing functions, while best-in-class outfits can get closer to 2.5-4%. So, the company began making acquisitions focusing partly on billing businesses it already worked with, as well as businesses with complementary sales teams and competitors.
The acquisitions helped cut the company’s cost of billing in half. By analysing historical reimbursement data in NetSuite, Precision Medical was able to identify product data trends and usage, then adjust its strategy to bring in roughly $2.5 million in additional revenue.
With NetSuite, Precision Medical created onboarding processes for its acquisitions that allows it to bring small organisations into the company in as few as 15 days. Additionally, NetSuite has strong integrations with third-party medical billing software and the team plans to enable two-way information sharing so information that’s updated in the billing programs is also updated in NetSuite.
