NATURE OF ASSIGNMENT:
Primary: Lender - Creditor Services / Debtor Oversight
Secondary: Lender - Creditor Services / Cash Flow Performance
Primary Industry: Healthcare
Company: An acute general hospital providing primarily medical and psychiatry services.
Situation: The hospital was experiencing declining gross revenues. Slumping occupancy was impacting profitability and had resulted in the hospital being in a critical negative cash flow position.
Focus Scope: Focus Management Group was engaged by the hospital’s senior lender to pinpoint the operating issues causing the negative cash flow, and to develop a rolling 13-week cash flow forecast.
Tasks Performed: Focus Professionals, in addition to their financial and cash flow analysis, reviewed and analyzed strategic plans prepared by the Company’s senior management and assessed opportunities for census growth, cost rationalization and profit improvement. Based on their analysis, Focus uncovered significant variance to the hospital’s own strategic and financial plan, and accordingly recommended that the lender fully liquidate its position.
Results:Our Focus team is currently assisting the lender in exiting the facility and expects the lender to fully recovery its position in a timely manner.