Victor Valley Community Hospital
In 1999 Victor Valley Community Hospital was in dire financial straights, having defaulted in repayment of financing bonds, guaranteed by the State of California. A management team was retained to provide a financial and operational assessment of the facility and the management company that was managing the facility. The assessment showed that the facility was not being managed in a cost efficient manner and that the current management had not made operational changes to correct the 2-year combined $17 million loss. Therefore, the Board of Directors with the approval of the State of California engaged a new management company to manage the facility.
In August 2000, Dr. Flood was appointed and served as the Chief Executive Officer for five (5) years. In 2001, Mr. Fallon was retained to manage the hospital’s revenue cycle and oversee the Business Office and related departments including Admitting, Registration, Billing and Collections. The Charge Description Master was revised, charge captures improved, systems and processes were developed and implement to insure timely and accurate billing through and systematic follow up and collection was implemented. Cash flow improved significantly and Days in Accounts Receivable were reduced to industry standards.
During Dr. Flood’s tenure, the facility experienced a positive record breaking financial turnaround within the first two years. Over the next year, efforts were focused on implementing new revenue generating business opportunities that strengthened the facility’s financial status.
In February 2005, management Dr. Flood arranged a transfer of management to a local physician group, with an influx of approximately $6 million; the facility is well on its way to building its future.
Central Valley General Hospital
In 1993 Sacred Heart Hospital was a financially struggling rural hospital in the Central Valley of California. The facility had been slated to be sold to a competing hospital in the area. The Board of Directors retained and interim management team to manage the hospital until the sale transaction could be accomplished. In May of that year the proposed sale transaction collapsed leaving the Sacred Heart Board perplexed for a solution. Mr. Fallon and a two other partners provided the solution by tendering the offer to purchase the hospital. The sale was completed in June 1993 and the hospital was renamed Central Valley General Hospital.
Mr. Fallon went on to create and become President of the Central Valley Medical Service Organization (MSO). Through these organizations the hospital established a network of rural health clinics with care provided for by a 20-physician multi-specialty group managed by the MSO. Additionally, the group contracted with the County to provide O.B. services at all the county’s clinics and the hospital brought Valley Children Hospital to provide neonatal intensive care services in our rural area.
Our group successfully managed the hospital and related organizations until 1998 when it was sold to Adventist Health Systems.
The principals of Advanced Hospital Management have a long and successful history in hospital management and turnarounds. These brief case studies only outline a few of the many successful projects of Mr. Richard D. Fallon, Jeffrey L. Flood, Pharm. D., and Lilly Lopez. References and Biographies are available upon request.
