QHR Strategic Initiatives

Leadership Takes Action

An independent hospital located in Northeastern U.S.

$157M total patient revenue, not-for-profit organization

Client Challenge

Auditors discovered understated AR reserves and adjusted the cost reports, revealing an unexpected

$4 million operating loss Pressure for swift financial improvements from bondholders Needed to take

decisive corrective action immediately

Timely Solutions

QHR Strategic Initiatives (SI) experts supported the hospital’s team with analysis, training, and step-by-step

guidance to resolve critical issues and improve financial performance. Some of the areas addressed by the

SI team were staffing and workflow, productivity monitoring processes and tools, the revenue cycle, and

supply chain.

Featured Results

The QHRSI team restored stability and established processes to quickly revive the bottom line and set a

course toward sustained longer-term financial improvements, without sacrificing the hospital’s mission of

providing personalized attention and state of the art comprehensive medical services. Within 12 months

operating losses were reduced by $3.3 million and bond covenant compliance restored; the hospital reported

a net income of $764,000 (unaudited) during this same year. The hospital’s debt service ratio improved from

0.2 to 1.4 and days cash-on-hand increased from 40 to 70 days.

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