PMCC Interactive

Tag: Improving business performance of Community mental health organizations

  • 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

     

    NOTE:

    Client names are not used because of Client privacy and Confidentiality Agreements.  Similarly, facts are cloaked to preclude people from deducing the Client name or situation.