Huntington, West Virginia
Catholic, not-for-profit
400 acute beds
Rate regulated environment
Affiliation: Marshall University School of Medicine

Background

Losing money from operations; dangerously thin cash position; current cash used to put long-term assets in place; financial management poor; very sophisticated medical staff; excellent quality of care; well-recognized cardiovascular, oncology, neurosurgical, and internal medicine programs; very little primary care capability; no strategic planning process.

Superior Results

After 4 years, income from operations up to $5.0 million; reserves at $20 million. After 10 years, reserves at $30 million.

Key Moves

• Developed primary care capabilities
• Undertook intensive CQI efforts in leading clinical programs, cutting costs and improving outcomes
• Integrated with service area’s leading internal medicine group
• Created significant ambulatory care capacity
• Re-tooled financial management to maintain access to capital

Leadership Focus

• Strategy, long-term positioning, and resource allocation
• Minimal Board involvement in operations
• Management team development
• Measurable performance standards
• Extensive concentration on physician relations