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For-Profit Hospital Resuscitated
The hospital was led from the critical list to robust health. The California Attorney General had sued it, and alleged it had unduly paid physicians to recruit them. The trial judge ruled in favor of the hospital, but then the AG said that their contracts for Medicare and Medicaid would be cancelled unless the hospital was sold. It was sold to investors from Los Angeles, and they hired a new CEO and assembled an entirely new C-suite.

Our Consultant’s Role
It was critical to set up the new corporation, manage and grow the partnership with the California Department of Corrections and Rehabilitation and U.S. Immigration and Customs Enforcement (ICE), and oversee inpatient/outpatient care of incarcerated patients. The executive team wanted fresh ideas and methods to make sure that they didn’t overlook risk or opportunity. They had their hands fully occupied with day-to-day operations. At the same time, they knew that if you don’t where you are going, you’re not going to get there. Vision and perspective were needed.

Vision will get you bupkis if you don’t take care of the nitty-gritty. In this situation, the administrative infrastructure had vanished completely with the sale of the hospital. The new normal was task overload and information deluge. The brass tacks were: set up new insurance, parking garages, medical office building for current providers, recruit new providers, and run operations of the jail section which accounted for 20% of the census and 40% of the bottom line.

Risk – Financial Collapse and Closure
Provider relations were a key to success, because those who were dedicated to jailed patients produced a lion’s share of revenue. The sale could have triggered an exodus. They viewed it as a rug that had been pulled out from under them, because the support they had received from the former owner (a nationwide healthcare system) had vanished.

Resolve the jeopardy imposed by Court oversight. Deliver the value expected by the State. Guarantee excellent patient care. Reassure providers with effective support. Establish trustworthy communication with all stakeholders.

Site tours and conversations with providers, staff and the Deputy Director of California Department of Corrections and Rehabilitation emphasized the goals and methods relevant to their respective priorities. The newly established “huddles” with the CEO, COO, CFO, Medical Director, Chief Nursing Executive, and Director of Human Resources identified issues, big and small.

Each item was addressed. These included the lack of fax machines for referrals, patient/family complaint resolution, intra-hospital staff communication, and staff – provider relations.

The biggest issue was provider compensation. Our consultant led the negotiation with the State. The providers were satisfied with the new payment.


  • The corps of providers stabilized, followed by a positive trend in recruitment.
  • The custody unit increased its portion of the bottom line by 15% in 5 months.
  • The State Deputy Director was pleased, maintained referrals and the custody census grew.
  • ICE maintained its contract, because its complex regulatory requirements were met.
  • The Medical Director and Chief of Nursing learned the strategies and methods, and continued to grow the program after our Consultant’s exit.

We invite you to contact us.

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