CASE STUDY:

DSO Turnaround Assessment

SCALE was engaged by a lender to assess a DSO business that is failing, and provide a recommended course of action to management to support closure, or stabilization & future success.

Client’s current state:

Client Profile

Services Deployed

Consulting

Revenue Cycle Management

Market Research

Addressed areas immediate focus (tier 1) to support performance improvement, with a detailed roadmap, sequencing plan and likely financial impact
Longer term tactics (tier 2) to support stability and growth that required more time to execute and mature
Recommendations to reduce and right-size Corp spend near-term to help support cash-burn concerns

Financial targets assume some variability in actual value based on execution success, SCALE is using a mid-range value in this bridge

Diligence accumulation, review, analysis
Off and on-site interviews with key stakeholders
Internal collaboration among SCALE team/workstreams
Routine reporting to project sponsor, including interim assessment, leading to greater focus and refinement of final product.
Read out to Lender on DSO status, assessment of capabilities, and recommendation to complete Phase 2, which was agreed to by the Lender

Development integrated turnaround plans including 9 separate workstreams, built off Phase 1 findings, stakeholder involvement and feedback, and sequencing that allowed business to improve in structured, realistic manner.

Cost reductions including site consolidations.
Driving revenue vis new patient growth
Improvement of RCM/Operations harmonization
Stabilizing of provider relationships
Improvement of Hygiene alignment
Elimination of corporate spend to align with DSOindustry norms while not de-stabilizing core functions

$14mm in improvement workstreams identified taking client from $11mm loss to $4.4mm in profit over 12-18 month period
Longer term tactics (tier 2) to support stability and growth that required more time to execute and mature
Recommendations to reduce and right-size Corp spend near-term to help support cash-burn concerns

High degree of clarity defining levers of success and DSO current state attributes falling short
Immediate recognition of lack of alignment of key stakeholders inside DSO Executive team
Deliverable provided a clear turnaround plan that was data and operations driven, providing key stakeholders with vision that was easy to understand from point of view of:

Acquisition Strategy was Flawed; Poor Integration, Lack of Management have Exacerbated Issues

Let's SCALE together

SCALE Healthcare is based on the foundation of a singular focus – elevating management performance across healthcare services. We are focused on the entire suite of operational advisory and diligence services exclusively to healthcare service organizations, with local team presence across 10 states.

Unlike the many consulting firms that offer more narrow and often more impractical solutions borne of limited or very general expertise, we rely on our team of 75+ carefully selected senior operational healthcare experts to ensure we provide the most relevant and value added experience across the full range of management disciplines and clinical specialties that fall within healthcare services.

DSO Turnaround Assessment