Case Studies

Financial Advisor for IPA Physicians

J.S. Held Acquires Shechter & Everett to Expand Forensic Accounting Capabilities for Family Law Disputes in Florida

Read More close Created with Sketch.
Home·Financial Advisor for IPA Physicians

The Situation

A medical center was at risk of losing its contract with the Independent Practice Association (IPA) of Physicians contracted to provide primary care services to the medical center’s employees due to the IPA’s high fixed costs. 

The IPA, which had been funded with a loan from the medical center, faced severe cash flow problems.  It had failed to attract sufficient members, beyond the medical center’s employees, to support its high fixed costs.  Displeased with the economics, physicians were threatening to leave the IPA which would have put the hospital in jeopardy.

How We Advised

Desirous to keep the IPA in business to serve the primary care needs of its employees, the medical center retained J.S. Held to conduct a financial analysis of the IPA and provide restructuring solutions.

Our experts creatively restructured debt owed by the IPA to the medical center, meeting both parties’ needs. Our actions and solutions included:

  • Analyzed the IPA’s cash flow projections and financial condition, including its debt service obligations to the medical center.
  • Researched regulations specific to the medical center’s loan to the IPA.
  • Prepared financial models demonstrating the feasibility of debt restructuring options pursuant to the IPA’s cash flow and regulations.
  • Provided a comfort letter outlining a creative, commercially-reasonable debt restructuring option that met the needs of the IPA and the medical center.

Key Contact

David Stapleton, CPA, CLPF
Senior Managing Director
Strategic Advisory Practice
+1 213 235 0601
[email protected]

Related Practice Areas

> Debt Restructuring Services
When a company is in financial distress, our Strategic Advisory experts design and implement debt restructuring and refinancing strategies tailored to the company’s unique circumstances. We help middle-market businesses stabilize operations, improve liquidity, and optimize their capital structures.

 

> Turnaround and Restructuring Services
Navigating the many challenges confronting a company in transition requires an operationally focused approach that looks beyond the balance sheet to minimize further degradation and build a path to sustainable growth. Drawing upon decades of experience in the turnaround space, we help companies in transition identify practical strategies to improve profitability and liquidity for immediate relief, while concurrently developing and executing a comprehensive turnaround plan for long-term, sustainable value creation.

Our Experts