Served as CEO, CFO, COO
A senior care organization located in Central New York, serving more than 6,000 individuals and their families through 22 programs delivered at 19 locations was in a multidimensional crisis of ineffective executive leadership, poor relationships with external stakeholders, and quickly deteriorating financial position. This prompted the Board of Trustees to engage HMP to provide management services to turnaround the operations and to design and implement a stable financial and management platform from which the organization could continue to successfully carry out its mission of service.
Issues
- Organization suffering from behaviors that inhibited effective roles and relationships between governing boards, executive leadership, staff, and external stakeholders
- Organization typified by “silo” structure creating fragmentation, lack of communication, duplication of effort, competition, and low trust across operational units
- Deteriorating financial position signaled by operating losses, poor cash flow, debt burden, lack of access to private capital, and inability to assess real-time financial position
- Several critical program initiatives threatened
Approach
- Engaged the governing structure, repaired relationships with strategic external partners, identified and engaged new strategic external partners, and managed executive leadership succession
- Right sized work force by eliminating redundant middle management positions created by prior SBU corporate designs
- Reviewed spending patterns, identified and implemented cost controls, restructured and adopted new financial systems
- Evaluated major program initiatives, allocated necessary resources, and resumed stalled projects and commitments
Results
- Informed and engaged Board of Trustees providing leadership to the organization
- Improved relationships with strategic partners
- Management contracts to operate three other local and regional long-term care facilities, totaling over 500 licensed beds
- Annual savings of approximately $10m in unnecessary personnel and associated costs
- De-compartmentalized and streamlined financial, human resource and procurement functions
- Ability to provide “real time” assessments of financial position, accelerated year end closeout and audit cycles, single audit framework that describes organization as a whole, and year-end audits with no going concerns
- Reduction in debt/interest burden on operating budget
- Corporate restructure to provide consistency of bylaws and single line of Board authority
- Improved EBIDA, days of cash on hand, equity and profit margin.