Hospital M&A and Integration

A $3B for-profit hospital system based on the west coast wanted to acquire a distressed 300-bed hospital in Connecticut. The $260M net revenue hospital had lost more than $50M in the last three years. David Kobis was tasked with leading the hospital acquisition for the for-profit system, as well as assisting with the financial turnaround and integration of the new hospital into the health system. Specific actions and successes included: 

• The successful on time $43M purchase and acquisition of the Connecticut hospital. 
• Achievement of a $26M year over year financial improvement through the following initiatives: 
  • labor management and productivity improvements, 
  • revenue cycle enhancements, 
  • documentation and coding changes, 
  • supply chain optimization, 
  • business development strategies, 
  • and payor contracting improvements. 
• The full operating and financial integration of the new hospital into the larger health system, including IT, HR, financial services, and reporting and decision support functions.