Building the Roadmap to Financial Success

SITUATIONAL COMPANY ISSUES & OBJECTIVES

Recently formed 3 hospital system was experiencing significant financial losses and approaching the “zone of insolvency”

The Board sought to have a financial performance improvement plan developed with the plan’s implementation enhancing the health system’s attractiveness to a long-term capital partner

ACTIVITIES & RESULTS

Conducted financial improvement diagnostic to identify the key drivers to improved financial performance

Diagnostic focused primarily on revenue cycle, labor costs, non-labor costs, programmatic performance and merger synergy opportunities

Financial improvement diagnostic identified that the primary drivers of financial improvement were the development of shared services, the rationalization of clinical services and improving revenue cycle performance

With the improved financial performance, the health system was able to secure an affiliation with a large health system providing improved access to capital