An established, growing ambulatory surgery center was experiencing a crippling and entirely unexplained financial difficulty. IBP stepped in and directed an internal controls audit to help the center uncover massive, widespread fraud on the part of the center’s administrator. Before IBP got involved, the center was on an inevitable road to financial insolvency. After the administrator was cut loose, IBP designed a comprehensive strategy for the center moving forward.
To ensure a return to financial health, IBP led the way on:
- Development of a complete cash controls system
- Replacement of the CPA firm, rationalization of the chart of accounts, implementation of improved bookkeeping and accounting
- Development of standardized periodic managerial reporting, including budgeting and variance reports
- Complete compliance review, including review and revision of substantial corporate documentation (e.g. Operating Agreement and Bylaws)
- Reconfiguration of the company’s internal formula value for the purchase and sale of shares to reflect liquidity and solvency issues
- Professionalization of and performance/productivity improvement for governing board
- Overhauling management by serving as general counsel/corporate officers (treasurer and secretary)
- Management and strategy consulting
- Vetting, replacement and management of third-party professional resources
- Engagement of audit and efficiency professionals
- Long-term planning and financial modeling
- Giving direct advice to the senior members/principals.
IBP’s efforts not only avoided bankruptcy, but resulted in a 25 percent increase in share value for the center within 9 months. IBP’s fees for this period were approximately 10 percent of the overall value generated by this increase.