Insights
- A large OB/GYN practice with 20 physicians and fully integrated laboratories, a radiology center and a surgical facility was struggling with the impact of managed care
- Collections had fallen and physician partners were questioning its strategy
- The company was considering whether to accept one of numerous offers to purchase the practice
Action
- The Newport partner joined the practice as CEO and applied her management consulting and healthcare experience to help the practice set a successful path forward
- An executive with substantial financial experience was also engaged to assist in re-engineering the business office and improve cash and operating flow
- Physicians were relieved of the business requirements and allowed to focus on their medical practices
Results
- The actions taken by the Newport partner were so successful that a management company was launched to help other OB/GYN practices grow
- The new management company grew quickly and quadrupled the number of OB/GYN physician practices under management in four years, becoming one of the nation’s largest women’s healthcare services companies at the time
- Physician compensation was substantially increased through a combination of improved billing and collections, renegotiated managed care contracts and growth of ancillary services
