Turnaround of Community Mental Health Organization

Client Engagement Summary

Client Description:

Public mental health organization

Client Opportunity or Challenge:

Client faced a myriad of challenges including but not limited to:

• Weak financial planning and controls capabilities
• Paucity of operational and management information
• Bank wanted to foreclose on debt
• Cost structure did not match declining revenue structure
• Funding changes due to change in government regulation
• Weak Billing practices and collections

Role:

Interim CFO and Chief Restructuring Officer

Outcomes or Benefit:

• Negotiated and extended debt agreements
• Improved financial reporting with emphasis on operational reporting to discern profitable and non-profitable programs
• Devised and executed strategies to either align program revenue and costs or to exit certain programs
• Devised monthly performance management and accountability process to ensure that strategies were effective, being enacted and yielding intended results
• Renegotiated leases for terminated programs without suit or extraordinary cash requirements for client
• Agency has sold businesses, cash flow is improving and agency is poised for growth