Bankruptcy Turnaround

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We had a client in the healthcare industry whose problems had reached critical proportions.
The federal government had put the company on probation and threatened permanent disqualification from future funding for its violation of regulations on patient rights, which culminated in a patient death as well as poor documentation of billing.

  • The government had reduced its funding and the company had to file bankruptcy
  • The C-suite was frustrated by its management team’s performance and the interpersonal conflict that created unreliable delivery of services

We were brought in to resolve the issue of protection of patient rights, which was the cause of the loss of funding. The strategy for success began with a decision to come up with solutions that were within a tight budget. While in bankruptcy, there was not a chance to use new debt or investment to augment personnel or technology. We had to find solutions with limited resources.

We focused on the personal conduct and ethics of the teams. It led to cost savings downstream, because we created more efficient operations, increased accountability, and greater alignment and buy in around solving problems. We gave the leaders and their teams permission to ask the question, “Why are we doing this in this particular way — or even at all?”

The foundation for achievement was the alignment of the C-suite, middle management’s leadership, and teams around the common goal of absolute dedication to the clients. When the team was going through hard times, we found a common purpose beyond material rewards to sustain its efforts. The mission to preserve the rights of the clients, reducing their suffering, and enhancing their resiliency to get better was now the glue that held the company together. The bond between the company members was the mutual respect and the caring that they had for each other and for their clients. This reinforced the notion that team alignment supported by efficient business processes has an expansive effect, positively impacting the client experience.

The company came out of probation and continues to receive federal funds. It survived two bankruptcies and was purchased by a renowned institution, with a 100% increase in new contracts and competitive awards from State of California and County of San Diego.

Due to this success, the next opportunity presented itself: Lead the turnaround of another company.

We invite you to contact us.

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