Case Studies

Quorum Intensive Resources helps hospitals overcome their most challenging problems. We deploy extraordinary people, strategies and tools for clients across the country, enabling them to regain efficiency, sustain it...and build upon it to thrive.

From Bankruptcy to Profitability

Valley Health System, which owns and operates two acute hospitals and a skilled nursing facility in California’s San Jacinto Valley, filed for Chapter 9 bankruptcy facing a $33 million projected loss in 2007. When an acquisition of the system was defeated in a local election, a rapid turnaround was needed for the hospital to remain viable. In November 2007, Quorum Intensive Resources was called in to lead the project.

Our team, headed by experienced finance/operations leaders on site, quickly launched an intense and innovative effort to improve cash flow and efficiency. In a period of just six months, Quorum Intensive Resources helped Valley Health System:

  • Increase cash by $4.6 million
  • Reduce AR days by 29%
  • Improve net patient service revenue by $12 million through managed care negotiations
  • Save $500,000 per month by reducing contract nursing
  • Realize supply chain and pharmacy savings of $2.5 million
  • Hire staff/nurses

By June 2008, Valley Health System reported its first monthly profit in three years.


Graph1

The Results Were Almost Immediate

Community Medical Center, a 299-bed full-service community hospital in a highly competitive market in northeastern Pennsylvania, reported a significant loss in FY 2006. Quorum Intensive Resources was engaged to lead a rapid financial improvement, and the results were dramatic. Our onsite interim CFO guided a process that helped to:

  • Increase CMC’s total operating revenues by 11%, while reducing full-time employees by 11%
  • Increase net patient service revenues per discharge by 19% and NPSR per outpatient visit by 23%
  • Reduce accounts receivable days by 37%
  • Increase days cash on hand by 23%

Quorum Intensive Resources also helped Community Medical Center secure a $10 million grant from Blue Cross/Blue Shield. In FY 2007, CMC reported a $12.3 million turnaround in just one year. And in FY 2008, through leadership from Quorum Intensive Resources' interim CEO and CFO, the total turnaround grew to more than $17 million.


Getting the Vision Back on Track

Quorum Intensive Resources was called in to help the local investors and community of Bridgeport, TX establish a new hospital after financing had collapsed and construction of the 36-bed facility was halted. Quorum Intensive Resources' leadership and intensive approach revitalized the dream and built confidence with underwriters to secure funding.

Quorum Intensive Resources' multidisciplinary team of consultants helped establish multiple processes required to run a hospital, including guiding staff recruitment and developing the hospital’s strategic and management action plans. Our experts also addressed:

  • Policies and procedures
  • Financial reporting
  • IT systems
  • Managed care negotiations
  • Accreditation certification

With Quorum Intensive Resources' help, the vision for Doctor’s Hospital became a reality. Doors opened in August, 2008.


Leadership Takes Immediate Action

Known for providing personalized attention and state of the art comprehensive medical services, this hospital was surprised when an independent audit revealed a significant operating loss. Quorum Intensive Resources responded to the leadership’s concerns, reducing operating losses by $3.3 million in 12 months. The hospital reported a net income of $764,000 in the same year, setting a course toward sustained long-term financial improvements.


Returning to a Strong Financial Position

This organization was suffering from poor patient throughput, precariously low reserves and growing accounts receivables. Quorum Intensive Resources identified improvements of more than $14 million for this hospital.


Regaining Prominence

At risk of violating its bond covenant and facing potential fiscal disaster, Quorum Intensive Resources helped this hospital achieve a positive bottom line within the first four months of the engagement and a $1.6 million bottom line within the first year.

Averting Disaster to Attain Excellence

Out of cash and suffering from prolonged patient and staff outmigration to larger competitors in nearby communities, this hospital’s survival was in question. Quickly reversing negative financial trends, the Quorum Intensive Resources team improved the hospital’s bottom line by nearly 15% in just 18 months. One year later, the hospital was named to the Solucient Top 100 Hospitals® list for excellent financial, operational and clinical performance year.

Rebuilding for Future Success

When senior level turnover and financial challenges raised potential issues with a recent bond placement, Quorum Intensive Resources immediately provided an interim executive management team and detailed management action plan to return this healthcare system to sustained profitability. Improvements totaled $11.4 million.

Wanted - Expert Opinion to Support Management Initiatives

Seeing a financial downturn, the senior management team of this integrated healthcare system prepared a plan to re-establish profitability. To improve the odds of success, the team hired Quorum Intensive Resources to review the plan. Intensive Resources validated proposed initiatives and identified additional opportunities exceeding $4.5 million, and a one-time cash flow enhancement of $3.9 million.

Mission Accomplished

A long-established hospital was struggling to compete in a small market with excess capacity. Also burdened with an unsustainable staffing mix and outdated third-party contracts, the hospital lost approximately $9.5 million during the 2006 fiscal year. It was burning through its cash reserves and near defaulting on a cash covenant. The hospital hired Intensive Resources to work collaboratively with the board of directors. In less than one year, Quorum Intensive Resources produced a $13 million turnaround for the hospital.