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Healthcare & Pharmaceuticals

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MERU CASE STUDY

Developed a turnaround plan for a healthcare system provider

COMPANY OVERVIEW

  • Safety-net 600 bed hospital for inner city Atlanta residents
  • Payor mix only ~10% commercial payors, 70+% Medicaid / self-pay
  • On first day of engagement, $10M in cash and $25M in held checks; 6 months past due AP to Emory / Morehouse medical schools
  • Hired to assess drivers of underperformance and develop a strategic plan to improve financial results

OUR APPROACH

  • Benchmarked Grady with other safety-net hospitals and identified non-core service areas (e.g. low-volume neighborhood health clinics; outpatient dialysis)
  • Developed 13-week cash forecast to provide visibility into liquidity and develop a plan to repay medical schools
  • Created 150-page strategic plan including margin improvement opportunities, governance changes, and capital investment plans

OUR IMPACT

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Significant improvement in financial performance once all performance improvement opportunities were implemented.

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Resulted in replacement of former Hospital Authority Board staffed by political appointees with non-profit Board led by former Georgia Pacific CEO Pete Correll.

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New governance structure allowed hospital to source tens of millions of dollars of grants and major gifts from local charities including the Woodruff Foundation and Home Depot founder Bernie Marcus.