Case Study

Speedy Response to Struggling Medical Group’s Search for Interim CFO


SITUATION

Redwood Regional Medical Group (RRMG) in Santa Rosa, California was in a difficult financial position. It had been without a CFO for over a year. A merger had been anticipated for over a year, but fell through. The financials were in disarray and unauditable, cash was running low, and there was growing concern about its survivability.

Two physicians, one of who was a member of the board of directors and finance committee, contacted HFS requesting options for handling the situation.

SOLUTIONS

HFS provided two options to address and correct RRMG’s financial issues:

    1. Consulting Engagement- This option entailed a full investigation of the problems, followed by advice on how to make the necessary improvements to mitigate them. Using HFS’s medical group financial and business office experts, the financial issues would be closely examined along with the root causes of the problems, and suggestions would be offered on how to correct them. A full report, presentations and guidance would be submitted, pointing the way out of the problems.

    2. Interim Management- A second choice involved bringing in a senior-level medical group financial expert, capable of providing direction and leadership. This person would be a full-time, interim CFO, who would assess and correct the financial issues, but also handle day-to-day operations as needed and directed by the board.
With another merger deal in the works, the board weighed the two options and decided to move forward with bringing in an interim CFO.

RESULTS

HFS’s executive search and interim management team maintains a database of highly qualified professionals and is well connected in the industry, resulting in quick responses when an organization has an immediate need.

Within a few days of RRMG’s board decision, HFS presented three exceptionally qualified and experienced candidates. The board chose Richard Yardley, a no-nonsense, unflappable healthcare finance professional with decades of experience. With the help and engagement of the Board of Directors, he took charge of the immediate issues of cash flow, collected on accounts receivable, and was able to keep the doors open and eventually facilitate a merger into a larger medical group.

HFS supported Yardley on a regular basis. "We find professionals who are truly skilled in the needs of the job," says John Pfeiffer, Principal at HFS. "We back them so that if additional specialized services are needed, we have a team here at HFS that can step in and help."

"We are very appreciative of the fact that HFS was able to find us a highly qualified CFO who was able to turn around a dire situation so that we could continue serving our patients. We highly recommend HFS for its ability to have successfully met our financial challenges and for the positive results achieved. "

– Dr. Wayne Keiser, Redwood Regional Medical Group


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