Healthcare & Pharmaceuticals
MERU CASE STUDY
Developed a turnaround plan for a healthcare system provider
- 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
- 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
Significant improvement in financial performance once all performance improvement opportunities were implemented.
Resulted in replacement of former Hospital Authority Board staffed by political appointees with non-profit Board led by former Georgia Pacific CEO Pete Correll.
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.