Case Studies
Industries: Services, Healthcare
Primary Services: Business / Operational Assessments, Financial Forecasting, Bankruptcy Advisory
A Multi-Site Hospital System of 410 licensed beds representing $170 million net revenues and 850 FTEs had experienced revenue declines and overall operating performance shortfalls and as a result, sought protection in the Bankruptcy Courts.
The Company’s senior lender was concerned and required a deeper understanding of the inherent risks of its existing secured collateral position and an evaluation of the potential of management’s reorganization plan for the Company as it sought to emerge from Chapter 11 proceedings.
Our experts completed a detailed, onsite financial and operational review of the Company’s operating facilities. During its assignment we completed an evaluation of current business plans and in-depth senior management interviews, which resulted in identification of specific initiatives relating to revenue cycle management, labor/non-labor expense, and patient volume and care management. Ultimately, our experts established that the Company’s operations supported the secured position of the Bank’s existing debt, as well as supporting a possible extension of Debtor In Possession (“DIP”) credit facility terms during the bankruptcy process. Further, the Bank was able to better understand the likelihood of the Company’s emergence from bankruptcy, under what capital structure and anticipated operating performance and working capital requirements.
Brian F. Gleason, CTP
Senior Managing Director
Strategic Advisory Practice
+1 610 659 8118
[email protected]
> Bankruptcy Advisory / Alternatives to Bankruptcy
When considering alternatives such as bankruptcy, you need a team with decades of experience helping leaders sitting in your exact seat to yield the best outcome for lenders, creditors, shareholders, and employees. We navigate the intricacies of bankruptcy and alternatives to bankruptcy with a 360-degree perspective gained from experience serving every constituent involved across wide-ranging industries.
> Business / Operational Assessment
Most consulting firms approach a business assessment from a purely financial perspective — our assessments provide a 360° view of a business, addressing growth drivers, profitability, and uses of capital. Along with detailed financial performance reviews and cash flow forecasting, our comprehensive Business / Operational Assessment identifies the various challenges clients encounter throughout their operations.
> Business Plan Validation
Third parties rely on our experts to validate and/or create business plans, particularly when the company in question is undergoing dramatic change. We have the proven ability to evaluate all the strategic, operational, financial, and managerial elements crucial to a company’s success and either endorse an existing business plan or identify risks, opportunities, and potential modifications.