Roswell Regional Hospital

Client

Roswell Regional Hospital (the “Hospital”) is a general acute care hospital in Roswell, New Mexico. The Hospital is a joint venture between a California-based management company and certain local physicians who practice at the facility. The hospital opened approximately one year prior to Bridge’s involvement.

Challenge

The Hospital experienced a number of unexpected problems during its initial start-up of operations, including (i) significant revenue cycle problems, (ii) delays and inaccuracies in the financial reporting, and (iii) the inability to recruit an adequate number of clinical and professional staff. The Hospital faced significant competition for patients, medical staff and employees from Eastern New Mexico Medical Center, a 162-bed, for-profit facility. Additionally, in mid-2008, the Hospital faced the near term maturity of it’s secured credit facility. Due to the significant on-going problems, the secured lenders began to question the Hospital’s ability to expeditiously achieve a path to operational and financial health.

Solution

Bridge was engaged by the secured lenders to undertake an operational assessment of the Hospital’s financial reporting and revenue cycle processes. Bridge’s experienced team of operational and revenue cycle consultants worked closely with the Hospital’s management and staff to evaluate process weaknesses and develop recommendations for improvement.

Results

Within three weeks of retention, Bridge issued a final report to the secured lenders evaluating the financial management and revenue cycle processes of the Hospital. Bridge’s professionals presented their findings to a joint meeting of the Hospital’s investors and the secured lenders. As a result of our report, the Hospital retained an experienced financial reporting consultant and immediately began to implement a number of financial reporting and revenue cycle improvements. After the issuance of Bridge’s report, the Hospital and secured lenders were able to negotiate the terms of an amendment and extension of the credit facility.