Texas Nursing Homes

Turnaround Management & CRO Services

A chain of six skilled nursing facilities defaulted on its debt with a large commercial healthcare lender. The lender engaged HMP to assess the viability of the provider and chart a possible turnaround. Ultimately, the lender foreclosed on the loan and engaged HMP as the turnaround agent.

Issues

• $2.5 million negative EBITDA as a result of inefficient staffing and poor operating model.
• Low occupancy due to low patient satisfaction, ineffective marketing and obsolete physical plants.
• Low morale among nursing staff due to lack of management focus on quality improvement and training.
• Lender was looking at a near total loss under the existing conditions.

Approach

• Consolidated two underperforming homes in the same market.
• Immediately focused on quality care and staff training.
• Implemented efficient staffing models to reduce costs.
• Developed an effective sales and communications strategy to effectively reach providers in each local market.
• Modernized and improved the physical plant to enhance the resident experience.

Results

• $3.5 million EBITDA improvement.
• Returned all facilities to full accreditation and licensure compliance.
• Facilitated the successful sale of the facilities by the lender.