TURNAROUND MANAGEMENT

We do not define ourselves as professional consultants: Instead, we are experienced healthcare operators who also have a strong consulting skill set. Having led and managed the successful turnaround of dozens of organizations in financial difficulty, we quickly pinpoint and prioritize key issues and know how to lead the organization and its stakeholders to the right solution. We are excellent communicators, and our transparent and fair approach is recognized by both the organizations we represent, and those on the other side of the table. We are committed to the provision of quality healthcare services at every provider organization in which we have a management role.

HMP’s senior management team has deep experience in taking necessary decisive action in crisis or turnaround situations. The combination of our collective knowledge and experience gives HMP a unique perspective and all the tools necessary to handle whatever crisis a healthcare provider organization faces. This type of skill is not usually found in the permanent leadership team.

HMP provides Restructuring Management, Hospital Contract Management and Interim or Crisis Management services. All of our senior executives have decades of healthcare experience, including CEO, COO and CFO assignments across the spectrum of health services. Examples of specific assignments include serving as the Chief Executive Officer (CEO) of the following types of healthcare organizations:

  • Religiously-affiliated or -sponsored multihospital systems
  • Free-standing not-for-profit and government-owned community hospitals
  • University and major teaching hospitals
  • Single-site and multi-hospital regional operations with investor-owned hospital management companies
  • New general acute care hospitals, free-standing heart and cancer hospitals, continuing care retirement communities, and many other related facilities—including de novo start-up planning, construction, and operation
  • Hospitals that are in bankruptcy or for sale
  • Financially distressed skilled nursing facilities
  • Home health, hospice, and physician practices

Our executive management assignments usually involve a minimum of two positions: Chief Executive Officer / Chief Restructuring Officer, and Chief Financial Officer. We are able to provide a full leadership team at the client’s request, however in many situations the turnaround is most successful by identifying existing internal talent and leading the organization through the turnaround process.

Restructuring Management

HMP’s executives have served as Chief Restructuring Officers (CRO) of healthcare companies during bankruptcies, crisis situations, and in the early stages of high-profile criminal and civil fraud investigations. In each of these situations, our leadership helps these organizations bolster performance through discipline and carefully planned action.

Some consultants assess problems and provide a recommended course of action, but HMP executives have the ability to take the helm of failing organizations and assume direct responsibility for transforming them. Time and again, our team has succeeded in revitalizing providers of all kinds, from a rural nursing home chain, to a 1,000-bed teaching hospital, to a 180-bed county-owned community hospital.

There are no quick fixes in turnaround management, but HMP has developed a highly effective, streamlined approach for achieving lasting improvements as soon as possible. We begin by developing a strong knowledge base of your organization. Individuals from every level of the organization are interviewed; we conduct sophisticated data analysis and benchmarking utilizing our proprietary product, HMP MetricsTM ; we analyze the financial and quality data of the organization; and with our depth of healthcare industry knowledge, HMP works to:

  • Stabilize the crisis
  • Identify immediate opportunities and challenges
  • Develop a turnaround/restructuring plan, including milestones and deadlines
  • Define expected outcomes
  • Build consensus among stakeholders, including medical and nursing staff, management, unions, vendors, patients, and the local community
  • Change cultures
  • Optimize performance

In all of our turnaround assignments, HMP has successfully designed and executed plans that simultaneously added patient volume and revenue, reduced costs, and improved profitability and cash flow.

From the outset, HMP builds on each organization’s strengths, working side-by-side with management, directors, and other key stakeholders to drive desired results. HMP also focuses on winning the support and active participation of the medical and nursing staff, which is fundamental for delivering quality healthcare services and improving financial results.

During a restructuring, either within or outside bankruptcy, HMP partners with management to develop and quickly implement a plan that makes sense given the organization’s resource constraints and market positioning. We are on the ground, leading specific aspects of the turnaround process and helping to manage complex constituency relations and communications. As part of this process, our executives will:

  • Address immediate working capital needs
  • Stabilize core operations
  • Review financial projections and develop actionable business plans
  • Design and implement any necessary operational restructuring
  • Implement ongoing communications processes with key constituencies
  • Develop and immediately implement cost reduction initiatives
  • Design and implement cash conservation guidelines and controls
  • Develop employee incentive plans
  • Identify and dispose of non-core assets
  • Develop pre-bankruptcy plans
  • Assist with bankruptcy case administration, serving as Bankruptcy Trustees and Examiners
  • Manage creditor communication and negotiation processes
Hospital Contract Management

HMP is positioned to assume the long-term (3 to 5 years) contract management of hospitals of all sizes and stages of development. We are directly accountable to the board of directors and assume full responsibility to plan, organize, staff, direct, and control the successful and cost-effective operations of the hospital.

Our executives are experienced in leading the development of new or replacement general acute care or specialty hospitals, and in the turnaround and repositioning of existing hospitals. And because HMP is not a pure management consulting firm, our contract management executives are always free to bring the best and most cost effective solution—from whatever source—to the hospital, should outside assistance prove necessary to implement a given strategic or tactical initiative.

As such, we can effectively lead initiatives in the following areas:

Strategic Leadership

  • Market Positioning
  • Brand Development
  • Service Line Development
  • Capital Planning and Investment
  • Physician Relations
  • Physician Integration
  • Continuum of Care
  • Corporate and Medical Staff Governance
  • Mission and Vision
  • Design and Implementation of Strategic Plans

Clinical Excellence

  • Clinical Process Redesign
  • Evidence-Based Care
  • Resource Utilization and Cost of Quality
  • Pay for Performance
  • Care and Case Management Processes
  • Quality and Safety Indicators

Operational Excellence

  • Patient Throughput
  • Emergency Department Clinical Efficiency
  • Surgical Services Clinical Efficiency
  • Inpatient Length of Stay and Level of Care
  • Human Resources Management
  • Ambulatory Care
  • Hospice and Home Care
  • Best Practices and Operating Metrics

Financial Performance Optimization

  • Revenue Cycle
  • Business Office Consolidation
  • Managed Care Contracting
  • Risk Management and Insurance
  • Budgeting and Financial Planning
  • Capital Programs
  • Supply Chain

Financial Reporting and Accounting

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