A private lender invested in a physician-owned operator of 14 freestanding emergency rooms and urgent care centers that never reached positive cash flow. Mr. Hundley was engaged as financial advisor to support a new CEO and stabilize the operation.
Action:
- Cash Flow & Reporting Discipline: Improved forecasting, internal reporting, and financial accuracy. Addressed cash shortfalls tied to physician compensation, working capital, and revenue cycle management.
- Vendor & Lease Restructuring: Negotiated revised payment terms with vendors and modified lease terms with landlords.
- Operational Rationalization: Closed underperforming locations and sold medical equipment and supplies.
- Receivables Recovery: Accelerated the collection of aged receivables from payors and patients improving liquidity.
Outcome:
- Within months, the company achieved its first period of positive cash flow.
- Liquidity improved through cost cuts, asset sales, and more effective collections—positioning the business for strategic alternatives.
brief description
Financial Advisor to a distressed healthcare company with defaulted debt, limited liquidity and negative cash flow
Industry: Medical
