50 doctor private cancer practice. $250 million revenue. $30 million debt. 17 locations in 3 states. Market leader in Southern Ohio.
- Founding partner retired and left leadership gap for multiple years
- Company burned thru $17 million of cash with billing cycle problems and failing to address money losing locations and physicians’ compensation issues
- Company had weak financial controls and systems
- New Management team was all non-healthcare industry managers
- Company was almost out of cash and in default of its loan agreement
- Focus on billing cycle issues and collecting old accounts receivable to generate cash
- Adjust physicians compensation to be a function of current cash situation
- Reduce costs across in all areas
- Encourage some physicians to seek alternative employment
- Reposition Company for sale to large hospital system and assist with sale
- Company was successfully sold in two separate transactions.
- Physician owners received a meaningful equity distribution and long-term financial stability for their practice.