Case Studies

Turnaround of Healthcare Practice

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

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Home·Turnaround of Healthcare Practice

The Situation

  • 50% market share in Tulsa, but declining due to increased hospital-based competition.
  • New $45 million state-of-the-art facility with extensive radiology equipment.
  • Three years of losses with a current annual EBITDA of $4 million.
  • $95 million of debt, including $35 million building, $45 million trade creditors who served essentially as working capital lenders, and $15 million of equipment leases.
  • Dysfunctional business management and a uniform and uninvolved physician ownership group.

How We Advised

Our experts assumed the interim CEO role to lead physicians and employees.

  • Improved profitability by reducing physician census and salaries.
  • Negotiated key reimbursement contract price improvements.
  • Started marketing and physician referral source outreach to stabilize and start to grow patient flow.
  • Replaced key managers with a combination of new hires and internal promotions.
  • Consolidated facilities and eliminated $2 million of annual costs.
  • Developed open communications and engaged employee culture that involved physician owners in all key decisions of the turnaround process.
  • Restructured trade supply debt with a 33% reduction in debt and a 4 1/2 year repayment plan at zero interest rate.
  • Structured sale-leaseback of primary facility to deleverage business and to create significant cash reserves to guard against unexpected events.
  • Assisted in the recruitment of a new permanent CEO.
  • Annual EBITDA has increased from a $4 million loss to $8 million in profit.
  • Debt has been reduced from $90 million to $40 million.
  • $4 million of cash in the bank.
  • Business is growing after years of decline.
  • The new CEO has taken over an exciting business opportunity.

Related Practice Areas

> Chief Restructuring Officer (CRO) and Interim Management Services 
Our experienced C-suite interim executives advise and support companies in financial distress, experiencing hypergrowth, or that are challenged by critical vacancies among senior leadership. Whether the leadership void results from operating challenges, a recent officer resignation, the need for added support during busy periods, or during an extended job search for the right permanent hire, our experienced executives provide immediate relief and value. 

 

> 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. 

Key Contact

For additional information about the engagement or to learn more about our services, contact:

Our Experts