Distressed interim management for healthcare centre turnaround
Distressed interim management for healthcare centre turnaround
| Industry | Healthcare |
| Services provided | Distressed interim management, interim management assistance |
Key learnings
- Early intervention: Timely leadership and strategic planning are critical in distressed environments
- Distressed interim management: Embedding experienced professionals can rapidly restore control and build internal capacity for long-term success.
BDO was engaged by the bondholders of a healthcare centre to provide Interim Chief Executive Officer (CEO) and Chief Financial Officer (CFO) support and lead a turnaround strategy aimed at improving operational and financial performance. The centre was experiencing significant cash burn and lacked adequate resources in both operations and finance. Initial engagement revealed urgent needs across operational and financial functions, with limited visibility in performance and profitability.
BDO provided distressed interim management services, including:
- Interim CEO and CFO placement
- Financial and operational review
- Cash flow modelling and ongoing management
- Key performance indicator (KPI) development
- Business recovery and turnaround advisory.
Strategy and restructuring path
BDO established two dedicated workstreams to address:
- Operational and financial restructuring
- Finance and accounting framework development
Key actions included:
- Identifying and implementing operational and financial KPIs
- Rolling out a 13-week cash flow forecast to monitor liquidity
- Designing a reporting framework for management and board-level oversight
- Regular reporting to bondholders and their advisors, including updates on performance, operational challenges, and contract negotiations with key suppliers.
Outcome
The team successfully stabilised operations and financial reporting, hired and trained a new finance team to support ongoing business needs, and scaled back interim involvement as internal capabilities were strengthened. This enabled the centre to continue operations with improved governance and financial discipline.