Regaining Prominence
A free standing community hospital located in Mid-West region, U.S.
$115 total patient revenue, not-for-profit organization
Client Challenge
Larger competitors
Poor investments in malls, physician practices and commercial properties
Declining Reimbursement
Rising Costs
$20M Operating loss in two years
Facing Bond Covenant violation
Timely Solutions
At risk of violating its bond covenants and facing potential fiscal disaster, the Board of this facility engaged
QHR Strategic Initiatives (SI). SI’s charge, to support the hospital’s newly recruited CEO in reestablishing
a viable health care franchise. Confidence in SI’s strong track record and SI’s involvement as advisor’s, the
bond insurers agreed to extend terms. Drawing on QHR’s consulting specialists; SI’s team quickly analyzed
the hospital’s needs and made improvements in the key areas of Medical Records, Business Office, Materials
Management and Facility Planning. In addition, SI immediately reviewed and restructured the hospital’s charge
master and proposed a productivity standard that would provide for patient care yet reduce the overall cost to
the hospital.
Featured Results
Within four months, the hospital was recording a positive bottom line. Within the first year, a $1.6M bottom line
was achieved, the first positive number in five (5) years. Overall staffing fell from a high of 55% to 44% of net
revenue. By working with the department managers and introducing them to QHR’s Learning Institute training
programs, morale, competence and commitment was increased.
Working with the senior management team, a marketing approach was undertaken to attract the loyal support of
the community and its physicians. The success of this initiative has enabled the hospital to fund a new Women’s
Diagnostic Center along with renovations to the obstetrical unit.
To date, this hospital is a financially solvent organization providing a full array of services to the communities it serves.
 | © 2008 QHR
105 Continental Place | Brentwood TN 37027 | 1-800-233-1470 | | | | |  |
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