This is the first in an occasional series of roundtable discussions by Certified Turnaround Professionals
(CTPs) on issues impacting the
turnaround, restructuring, and
distressed investing industry. In this
installment, Ruediger (Rudi) Mueller,
CTP; Robert D. Katz, CTP; and Edward
J. Sanz, CTP, discuss some of the
problems facing distressed hospitals.
Mueller moderated the discussion.
Our topic today is
hospitals. That is obviously a very large
topic area, so we will limit ourselves to a
few key issues that distressed hospitals,
and hospitals in general, are facing
around the country.
We are looking at market issues. Do
hospitals market themselves to the right
audience, to the right local market?
We are looking at financial issues. And
we are looking at a couple operational
issues, mostly scheduling and the
huge black hole in hospital finances,
emergency rooms. So we start with Ed
Sanz, who will talk about the markets,
and then continue with Rob Katz, who
will talk about finances, and, last but
not least, we will talk about operations.
If you think about the origins
of where hospitals are today, it goes
back to the very structure of Medicare
and Medicaid, and how providers have
historically chased payments; that is,
The critical issue facing hospitals is that
they are not responding appropriately
to what their specific markets need.
They are not identifying all the services
that are required in their service area
and are either being all things to all
people, or else they are specializing too