A recent guest blog by Community Hospital Corporation (CHC) featured tips for successful turnaround by Anthony Sudduth, CEO of Southwest Health System.
Editor's Note: This article originally appeared on Community Hospital Corporation's website.
Last year, Southwest Health System (SHS), in Cortez, Colorado, found itself in the midst of a significant financial crisis. The hospital had violated bond covenants associated with a $32 million building project, failing to meet the 80 days cash-on-hand requirement for four consecutive quarters. This violation triggered technical default, which could have led to bankruptcy and closure. Instead, SHS acted swiftly and decisively, becoming not a cautionary tale but a comeback story and an inspiration.
The SHS turnaround is a bright spot amid a grim picture across the nation. Healthcare industry distress, as measured in the Polsinelli-TrBK Distress Indices Report, has risen 305% since 2010. However, hospital distress does not mean closure is imminent. SHS’s turnaround is a prime example. Click here to continue>>
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