Not-for-Profit Acute Care Hospital
Company:Located in Franklin, Indiana, Johnson Memorial Corporation ("JMC") is a 149-bed, full service not-for-profit acute hospital, serving the health care needs of Johnson County and surrounding areas.
JMC filed a voluntary petition for relief under Chapter 11 in the United States Bankruptcy Court for the District of Connecticut, Hartford Division.
Focus was engaged as interim CEO, COO and CFO to increase profitability and operational efficiency and guide the hospital through its Chapter 11 bankruptcy case.
- Renegotiated managed care contracts which created significant revenues
- Completed a significant restructuring to reduce and realign expenses
- Reviewed, analyzed and assessed business operations and financial procedures in order to determine its current financial situation and to identify those issues and opportunities which impact the hospital’s short term liquidity position and viability
- Prepared a rolling thirteen week cash flow analysis to identify any issues in ability to service debt associated with its loan facilities with its incumbent senior lender
- Conducted a management assessment, including interviewing and assessing capability gaps for the senior management team and assessing physician relations
- Discussed the Hospital’s financial and operational condition and opportunities with the Hospital’s Management, its Board of Directors and its stakeholders including its incumbent secured lender
- JMC's Plan of Reorganization was confirmed on October 1, 2010 and successfully emerged from Chapter 11 bankruptcy as a stand-alone organization.
- Focus Professionals took the operation from a very large negative operating loss to a significant operating profit.
- Due to Focus leadership, the hospital expanded its services, reconnected with the community and made significant capital improvements to the facility and clinical equipment.
- Under Focus’ leadership, the hospital has realized annualized cost reductions of over $18MM.
- Under the reorganization plan, the hospital’s unsecured creditors will be paid at least $9.3MM over five years, of which about $1.5MM will be paid immediately.
- The Patient Care Ombudsman (PCO) assigned to evaluate the quality of care at JMC and Evergreen Health Care Center during the Chapter 11 process reported that the organization functioned without any negative impact on patient care during the reorganization.