Lessons for Leaders of Distressed Hospitals

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>>


News from our partners. 

Copyright © 2022 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars