Washington, D.C.-based United Medical Center approved a contract with a new consulting firm, according to a Washington Business Journal report.
Here are six things to know.
1. UMC's board on Monday approved a $5 million contract with accounting and financial consulting firm Mazars USA.The board voted to hire Mazars USA in January, two months after the district's City Council terminated the hospital's management contract with UMC's former manager, Veritas.
2. Under the eight-month contract, Mazars is slated to manage the hospital until its fiscal year ends Sept. 30, according to the report. UMC said in a statement the agreement consists of "a chief executive officer and other full-time industry experts to support UMC physicians, nurses and staff with knowledge and industry best practices."
3. The D.C. City Council must still approve the agreement. A passive approval would occur without the introduction of a disapproval resolution by Feb. 17, according to the report.
4. A contract extension is possible in the future. Washington Business Journal said Mazars would be paid $6.8 million for the first option year, "when it's expected to implement and monitor board-approved projects," and $7.1 million for a second option year.
5. The new contract approval comes as UMC faces financial hardship. The district's CFO told hospital board members last month UMC is "functionally a Chapter 11 hospital right now."
6. UMC Board Chair LaRuby May said of the agreement: "I'm optimistic about the experience that Mazars brings to benefit Wards 7 and 8 residents. There is a lot of work to do at UMC, and I expect them to fulfill our expectations."
To read the full report by the Washington Business Journal, click here.
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