Achieved 9.1% operating margin improvement in 12 months, without performing a workforce reduction
Facing a $53 million operating loss and at risk of violating bond covenant requirements, Southeast Georgia Health System (SGHS) engaged Warbird Healthcare Advisors to develop and execute a strategic turnaround plan for improved financial performance and better long-term sustainability.
Warbird’s team of experts conducted a rapid, in-depth assessment of SGHS’s operations, creating a turnaround plan that addressed its challenges and inefficiencies in operating costs, workforce shortages, denials management, patient throughput, managed care strategy and contract negotiations. Warbird then served as the implementation partner for SGHS to execute on the turnaround plan.
Outcomes & Results
The partnership drove more than $49 million over a 15-month period:
Credit ratings agencies: upgraded outlooks to Stable
EBITDA improvement: $45.6 million, without a workforce reduction
Net revenue growth: 13%, while containing expense growth at 3.8%
Debt Service Coverage Ratio: improved from (0.82) to 2.48
Credit line balance: improved to $0
Summary of Work & Areas of Focus
Performance improvement plan development and implementation
Expertise in and execution of turnaround initiatives in labor productivity, revenue cycle and denials management, care management/length of stay reduction and managed care/payer negotiations
Ratings agency presentation preparation and delivery assistance
Bondholder relations management and Consultant’s Report
Team member education and training for sustainable results
“Without question, this would not have been accomplished without our partnership with Warbird. Their engagement, advice, and expertise have been vital to our success.”
- Scott Raynes, President & CEO
Southeast Georgia Health System
Performance Improvement & Turnaround Services
Warbird Healthcare Advisors’ approach to performance improvement is designed to quickly but successfully transition healthcare organizations from study and assessment of opportunities to execution and results.
This rapid transition is made possible by our operators’ ability to tailor our approach to match our client partners’ specific needs. Warbird’s practitioner-advisor model delivers guaranteed results that empower healthcare organizations to sustain financial and operational improvement, from narrowly focused performance evaluations to comprehensive turnarounds.
Service offerings:
Clinical quality enhancement
Cost containment
Performance improvement assessments and approaches
Revenue enhancement
