GlassRatner's Marshall Glade has been featured as a panellist in the article 'Tackling distress in the US healthcare sector' in Financier Worldwide Magazine's October 2017 Issue. Through Financier Worldwide Magazine's monthly issues, they introduce a combination of journalistic reporting and the views of professionals around the board to convey helpful information to navigate the corporate world.
Below is an excerpt of the discussion featured in this article:
FW: What strategies can struggling healthcare companies deploy to help them avoid bankruptcy and turn around their business? Is it fair to say that boards and executives often do not appreciate how critical their situation is until it is too late?
Glade: In most circumstances, a distressed situation is recognised too late. Often we are in a position to tell parties that we could have had a different outcome if you had just called six months ago. Nevertheless, one of the first strategies is to implement a fresh look at the profitability of each of the company’s offerings. In the case of a hospital, it may offer outpatient surgeries, cancer treatments, a women’s centre and behavioural health services. Each component needs to have a thorough review and a determination needs to be made regarding its profitability. This type of review can be difficult for a hospital to undertake, since many times the board of directors and management’s focus are not simply financial, but also making sure medical care is provided for the surrounding community. The board of directors and management need to develop an understanding that by discontinuing one unprofitable segment, they are actually allowing for continued care in the community by making sure the other services can be offered for the long term. Board members are often retired physicians and community leaders; typically they do not have the expertise to recognise financial problems at an early stage.
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