interim management case study.

The Challenge
A private medical group practice, combined with an ambulatory surgical center, had been operating at a loss for three consecutive years despite having been purchased as an established, profitable enterprise. The O/R was less than 50% utilized and the provider schedules were less than 50% of the approved template at all three office locations. Additionally, the physician owners had taken no real income from the practice in over one year and were selling personal assets to meet monthly obligations.

The Solution
The following initiatives were utilized to improve the financial and operational performance of the practice:

• Provided interim CEO to train and support current management staff
• Restructured administrator priorities and duties to effectively oversee operations
• Restructured physician templates to emphasize productivity
• Established front and back office staff pods to bolster efficiency and communications
• Implemented a labor productivity management system
• Improved skilled labor and productivity at each position
• Initiated a non-labor cost reduction project
• Designed marketing approach for expansion and market segmentation
• Restructured all internal systems of accounting and implemented theft prevention protocols

The Results
During a twelve month interim management engagement, Advantage achieved the following results:

• Increased O/R cases to 120% of existing facility utilizing two separate sites
• Reduced practice debt by $250,000
• Brought all accounts payable vendors to current status
• Increased practice annualized revenue by $1,000,000
• Increased patient annualized appointments by nearly 175%