1 shp booklet- front 2.5.18spectrumhpllc.com/wp/wp-content/uploads/2018/12/shp...shp professionals...

341 Cool Springs Blvd, Suite 305

Franklin, Tennessee 37067

Office: 615.778.4650

www.spectrumhpllc.com

"providing the full spectrum of healthcare consulting"

TRANSACTION ADVISORY SERVICES

HEALTHCARE COUNSEL ON COMMAND

INTERIM & CRISIS MANAGEMENT

PERFORMANCE IMPROVEMENT

HEALTHCARE ANALYTICS

TURNAROUND & RESTRUCTURING

LENDER SERVICES

POST TRANSACTION SERVICES

HEALTHCARE ORGANIZATIONS SERVED BYSHP:

•For-Profit and Not-For-Profit Healthcare Systems•Community based Not-For-Profit Hospitals•Academic Medical Centers (AMC’s)•Specialty Hospitals•Rehabilitation Hospitals•Psychiatric Hospitals•Long-Term Care Hospitals•Multi-Specialty Physician Practice Groups•Start-up For-Profit Healthcare Companies•Drug and Alcohol Rehabilitation Companies•Real Estate Investment Trusts (REIT’s)

SHP ALSO PROVIDES SERVICES TO:

•Law Firms•Financial Institutions•Investment Banks•Venture Capital Firms•Private Equity Firms

Spectrum Health Partners (“SHP”) is a financial advisoryservices firm focused exclusively on the healthcare industry.We provide event driven services to support TransactionAdvisory Services; Healthcare Counsel on Command; Interim& Crisis Management; Performance Improvement; HealthcareAnalytics; Turnaround & Restructuring; Lender Services; andPost Transaction Services.

Spectrum Health Partners is uniquely qualified to provide youwith the tools and support necessary to achieve success intoday's ever changing and challenging healthcareenvironment. SHP will have an immediate positive impact onthe financial and operational performance of yourOrganization.

SHP is an expert model. Each of our Partners, Principals andSenior Advisors possesses at least 25 years of experiencein hospital operations and consulting. The significant anddiverse experience of our Partners, Principals and SeniorAdvisors, provides us with the ability and resources to assistorganizations of all sizes throughout the United States. SHPspecializes in the areas listed below.

AREAS OF EXPERTISE:

ABOUT US

SpectrumHealth Partners

CONTACT INFORMATIONSpectrum Health PartnersOffice Phone: (615) 778-4650www.spectrumhpllc.com341 Cools Springs Blvd, Suite 305Franklin, TN 37067

Kenneth P. Doran, CPAPresident and CEOCell Phone: (615) 715-8947Email: [email protected]

Will Moore, CPA, CIRA, FHFMAPartnerCell Phone: (512) 750-0955Email: [email protected]

Mark Hartman, CPA, FHFMAPartnerCell Phone: (501) 690-9540Email: [email protected]

Seth C. SharpePrincipalCell Phone: (931) 334-6397Email: [email protected]

Brent WhitePrincipalCell Phone: (423) 227-4976Email: [email protected]

QUALITY OF EARNINGS: Evaluate the target's revenue (emphasis on payor contract efficiency). Assessthe quality of a target's earnings (Q of E), to include the identification and quantification of non-recurring,out-of-period, non-cash, or other items that factor into EBITDA (perform Cash to Net Revenue analysis tosupport Run Rate).

PNWC AND FNWC: Calculate both pre-transaction Preliminary Net Working Capital (PNWC) and FinalNet Working Capital (FNWC) through Settlement. Understand and document the targets' balance sheetto validate assets and ensure that liabilities are stated properly through Settlement.

CONTRACT REVIEW: In conjunction with legal representatives, complete a thorough contract review todetermine which contracts to assume or not assume by Buyer (Operational/Physician/Payor/Leases).

BUSINESS DRIVERS: Identify significant business drivers/trends that impact the business eitherpositively or negatively in anticipation of these and other drivers/trends continuing in the future.

FINANCIAL STAFF and SYSTEMS: Evaluate the quality of a target's financial staff (including RevenueCycle), financial reporting, internal controls and systems utilized to accumulate financial data.

INFORMATION SYSTEMS: Evaluate system effectiveness to provide ongoing KPI reporting and meetfuture demands (HITECH monitoring and reporting).

OPERATIONAL REVIEWS: Perform in-depth reviews of key departments including management, staffand Contribution Margin analysis of those departments.

STRATEGIC PLANNING and BOARD GUIDANCE: Develop a strategic planning process to define thebest long-term alternative solution for an organization. Provide Board guidance to ensure the bestoutcome and reporting mechanisms to assure organization stays on track or quickly identifies changesin direction required to meet market demand.

OPENING BALANCE SHEET (OBS): For completed acquisitions, establish the OBS setup. Establishongoing reconciliation process and audit schedule.

INTEGRATION: With our experience gained by managing over 180 transactions, we are able to performoperational and financial integration of the acquisition to the Buyer's organization.

PHYSICIAN GAP ANALYSIS: Determine recruitment needs based on Strategic Plan goals.

Spectrum Health Partners (SHP) transactional experience in thehealthcare field adds enormous value in the decision process at thosekey moments when the correct application of due diligence principlesultimately defines organizational success or failure. Whether SHPprovides a turn-key due diligence solution to a proposedacquisition or supports an ongoing transaction through advisoryservices such as deal point negotiation or calculation of final networking capital/settlement, our operational depth and financialunderstanding bring critical insights few firms will match.

SCOPE OF SERVICES

TRANSACTIONADVISORYSERVICES


CONTACT INFORMATIONSpectrum Health PartnersOffice Phone: (615) 778-4650www.spectrumhpllc.com341 Cools Springs Blvd, Suite 305Franklin, TN 37067






SCOPE OF SERVICESINTERIM GENERAL COUNSEL SERVICES. For companies without a legal department or hasan immediate need for a general counsel on a full or part time basis, SHP can provide attorneyswith senior level in-house experience who are able to focus on the strategic management of acompanies legal affairs.● Maximizing a company’s strategic business plan while minimizing its risk and provide expertand strategic advice to the Company’s Board of Directors and Senior Management Team.

● Ensuring compliant business policies and procedures that support business objectives whichare consistent with federal and state laws and regulations.

● Serving as a key advisor on all substantive transactions and provide guidance to managementin achieving business objectives.

● Managing litigation and regulatory investigations with senior executives and outside counsel,establish a legal strategy and recommend settlements.

PROJECT COUNSEL SERVICES. For companies that have a legal department, but havea temporary need for legal counsel to help manage workload or implement definedprojects, SHP can provide legal and business expertise that cannot be matched bymost temporary lawyers supplied by staffing agencies. SHP provides an affordableoption to retaining outside counsel or hiring permanent staff.● Providing day to day operational counsel to directors, managers and clinical staffregarding health care legal matters.● Analyze and provide guidance regarding compliance with federal and state healthcare laws and regulations: Anti-Kickback, Stark, False Claims, CMP, HIPAA, ACGME,CON, ACA, ERISA, COBRA, EMTALA, COP, NPDB, EPA and EEO.● Negotiate and draft definitive agreements regarding acquisitions, divestitures, jointventures, due diligence, real estate, provider and employment agreements.

Today, public and private companies from start-ups to Fortune 500health care systems face a predicament. They all have difficulties in eitheraffording or identifying experienced in-house counsel and instead mustrely upon law firms to exclusively manage their legal services. Havingexpert in-house legal professionals who are integral partners with yoursenior management team and provide proactive and timely advice is keyto a business achieving its strategic plan as well as improving its bottomline.Spectrum Health Partners (SHP) goal is to provide healthcare counsel oncommand either on an Interim General Counsel or Project Counsel basis.We have counsel that are experienced in the complexities of the ever-changing healthcare industry and work collaboratively with Board ofDirectors, senior management as well as in-house or outside legalcounsel in providing operational, regulatory and risk managementanalysis and corporate compliance guidance as well as strategicplanning and governance guidance. As a result, SHP allows clients tobecome more proactive by enhancing the quality and responsiveness ofthe legal services it receives at a fraction of the cost.

HEALTHCARECOUNSEL ONCOMMAND


INTERIM & CRISISMANAGEMENT

Every organization at some point is faced with the loss of a keymanagement resource. Voluntary or involuntary termination,retirement, promotion, or long-term illness can result in anorganization scrambling to fill important gaps in their manage-ment structure. When it becomes necessary to temporarily fill animportant management position on an interim basis, SpectrumHealth Partners’ can step in while the search for apermanent replacement is completed.

Spectrum Health Partners’ (SHP) collective managerial expe-rience spans more than 150 different health care organiza-tions. Our firm represents a level of seasoned executive talentaccustomed to assuming wide functional responsibilities in keymanagement roles of organizations on a regular basis. Inaddition to our broad capabilities in providing daily line man-agement, we have the capability of supplementing existingmanagement through mentoring of operations, coordination ofboard functions, or strategic advisory services.

Spectrum Health Partners has developed an extensivenetwork of highly skilled executives who can assume rolescritical to the continued short-term and long-term success of theorganization. SHP possesses significant resources in t h efollowing positions:

● CHIEF EXECUTIVE OFFICERS● CHIEF OPERATING OFFICERS● CHIEF FINANCIAL OFFICERS● CHIEF NURSING OFFICERS● CHIEF HUMAN RESOURCE OFFICERS● CONTROLLERS● REVENUE CYCLE MANAGERS● REIMBURSEMENT SPECIALISTS● COMPLIANCE SPECIALISTS

Spectrum Health Partners Interim & Crisis ManagementServices are designed to be transparent to the organization. Ourcontracts are flexible with 30 day out clause language whichprovides flexibility to our clients.


CONTACT INFORMATIONSpectrum Health PartnersOffice Phone: (615) 778-4650www.spectrumhpllc.com341 Cool Springs Blvd, Suite 305Franklin, TN 37067



Mark Hartman, CPA, FHFMAPartnerCell Phone: (501) 690-9540Email:[email protected]









PERFORMANCEIMPROVEMENT

EXPENSE EFFICIENCY AND IMPROVEMENT:Our expertise in reviewing and refining labor productivity whileat the same time assessing the non-salary portion of opera-tions, has routinely led our clients to improved performance.

NET REVENUE PERFORMANCE GUIDANCE:Many healthcare organizations are not able to allocate the timeneeded to appropriately review their policies and procedures,processes, charge description master, charge capture, tech-nology utilization, and the overall Revenue Cycle. SHP’sextensive review processes identify in detail those areas,which normally create net revenue improvements.

PHYSICIAN ALIGNMENT AND GROWTH INITIATIVES:SHP has the necessary resources to evaluate and addressphysician development and kick off initiatives of an accretivenature to organizational profitability. Our multi-disciplinaryfocus on managing clinical and financial imperatives is acritical element to achieve operational success in these areas.

STRATEGIC ASSESSMENT AND DIRECTION:Our firm will assess your organization’s current strategicposition and outline steps to strategically reposition it toachieve greater potential, through a comprehensive evalua-tion of service delivery, quality focus, physician management,technology, and capital.

SHP’s access to levels of experience and competitive information allows us to addsignificant value through the development of customized operating metrics andbenchmarking analyses. While most healthcare organizations struggle to operateagainst a changing backdrop of healthcare with reimbursement, technology, andother external forces in flux, SHP can help guide them toward greater efficiency.


Spectrum Health Partners (SHP) routinely works improving operational and compet-itive competencies within healthcare organizations. Implementation of identifiedinitiatives occurs collaboratively, emphasizing management participation, and isconstantly mindful of organizational mission and priorities. Leveraging administra-tive and physician direction through steering committees and task forces, the Finan-cial and Operational Assessments for Performance Improvement model focuses onaccomplishment of a patient care delivery model redesign capable of maintainingand growing market share as it responds to the economic and reform related pres-sures of our ever changing healthcare environment.







Strategic Planning: Best performing organizations engage in some form of strategic planning that forms thebasis for all strategic initiatives and capital funding for a reasonable projected horizon. The financial plan shouldfocus not only on the work being done to support the strategic goals and operating performance, but alsocontemplate external business development consistent with existing business plans.

Budgeting Support: As the primary operational goal setting tool, the organization’s annual operating budgetis critical to facility performance. Spectrum has professionals who can jump into the trenches to help when youneed assistance to augment or lead your staff. We can also provide guidance toward development ofoperating and capital budgets consistent with established strategic planning targets.

Physician Relations: As the range of physician alignment models evolve, so does the need to understand thetrue value of each physician relationship. These relationships must ultimately be expressed in metrics that allowanalysis on a wide range of contributions to the organizations clinical integration, quality, and financial health.Spectrum has a team of professionals who can assist an organization developing the tools necessary toimprove physician relations.

Payor Analysis: Enhancing the payor portfolio requires comprehensive analysis to effectively negotiateoptimal payment rates and contractual terms. Spectrum has the technical skills to review a client’s payorprofile, evaluate the relative profitability of each specific contractual relationship, and provide specificrecommendations to improve net reimbursable revenue.

Service Line Analysis: Service Line performance analysis requires the application of business intelligence.The compilation and analysis of information from a variety of sources to plan, develop and manage theorganization’s service lines will work to ensure maximum profitability. Typical measures of performance include:

● Profit & Loss Metrics. Outpatient revenues, inpatient revenues, reimbursement rates, adjustments, write-offs, costs of labor, materials, overhead, direct contribution margins, and indirect contribution margins● Investment Measures. Facility purchases, equipment purchases and cost of various forms of capital.● Operational Statistics and Ratios. Cases, clinic visits, discharges, patient days, average length of stay(ALOS), case mix index (CMI), emergency room (ER) visits, admissions and productivity measures.

Spectrum’s team of experts work with a hospital’s decision-makers to translate data tosupport decision making on a project-by-project basis and for ongoing initiatives. Ourexpertise can extend your own team’s breadth and depth to provide not only theanalysis of financial and operational data, but also provide insights on how to executefocusing in the following areas:

HEALTHCAREANALYTICS


High quality performance is rarely the result of chance or intuition. Thecomplex transformation happening in today’s healthcare environmentrequires the coordination of scarce human, technical and facilityresources. Strategic, Operational, and Financial Planning must all becoordinated to effectively develop a plan that can be executed withdemanding timelines and other constraints.Engaging outside assistance for planning requires professionals who can graspthe organization’s vision and resources quickly. Spectrum Health Partnerprofessionals have the strategic vision and the tactical skills to bring multiplelevels of planning together in a seamless and highly efficient manner.

A well-prepared Service Line analysis will indicate those service areas which should beexpanded, contracted or possibly closed. Service lines that are not accretive to theorganization should be scrutinized closely because of their negative impact to theorganization.







TURNAROUND &RESTRUCTURING

The stated goal of all healthcare organizations is to improve thefinancial performance of the entity and simultaneously increase thequality of patient care. After all, the patient is the primary reason thathealthcare exists. Increasing the quality of patient care cannot beachieved without the organization first achieving financial success.

Unfortunately in these challenging times, improving the financialperformance of the entity sometimes becomes a dream and not thereality. Pressure from Federal/State governments, reducedreimbursements from third party payers, pressure from the medicalstaff, an aging physical plant, reduced patient census, and an obso-lete Information System, only to name a few, can all be factors whichlead to the poor financial performance of an entity. Poor financialperformance yields low quality patient care and ultimately a distressedhealthcare entity.

Spectrum Health Partners (SHP) is differentiated as an organizationthrough not only the quality of its collective experience and funda-mental knowledge of the healthcare industry, but through the provencapabilities of its professionals to successfully execute intensechange management.

SHP Partners, Principals, and Senior Advisors are true restructuringprofessionals accustomed to providing direction and asserting controlin the midst of radically adverse managerial circumstances. WhetherSHP professionals are helping a troubled organization strategicallyassess its potential capacity to formally reorganize or driving anoperating turnaround through a management team in charge ofdaily operations, SHP’s main focus remains the building of valuefor your organization stakeholders.

SHP’s financial restructuring, turnaround and bankruptcy servicesfocus on restoring financially distressed hospitals to a position offinancial strength. Our process is designed to quickly stabilize yourentity in the short–term while repositioning it for long-term success. Ifdesigned correctly, restructuring, turnaround and bankruptcy servicesare uncomplicated and very effective. The results of therestructuring/turnaround/bankruptcy will position it for success far intothe future.


SCOPE OFSERVICES

LENDERSERVICES

The deliverable will typically include an EBIDA/Cashflow Improvement Plan andFinancial Projections (including five-year pro forma balance sheet, incomestatement, statement of change in net assets, cash flow statement, that showthe financial impact of improvements).

PHYSICIAN RELATIONS:Assess physician relations and theimpact that physician behavior hason the organization’s financialperformance.

QUALITY REVIEW:Compare quality measures withregional and national norms.

FINANCIAL REVIEW:Review the financial trends andevaluate the credibility and timeli-ness of financial reporting.

OPERATING PERFORMANCE:May include Revenue Cycle, Labor/Productivity, Non Labor (includingsupply chain) and Clinical Effective-ness (Case Management, ClinicalResource Management and PatientThroughput).

STRATEGIC SNAPSHOT:High level review of competitivemarket position, portfolio ofservices and the current strategicplan.

VIABILITY STUDY:High level evaluation of long-termviability which takes into accountthe strategic snapshot (see above),projected operating performance,balance sheet and projectedcapital needs and debt capacity(and may include evaluation ofreview of strategic partnershipoptions).

GOVERNANCE ANDORGANIZATIONAL STRUCTURE:Review the organizational structureand identify opportunities toimprove organizational efficiencyand information flow (may includereviews of governance structureand/or management span ofcontrol).

Spectrum Health Partners (SHP) specializes in helping health systems/ hospitalsthat have experienced bond downgrades and covenant violations. Working tobalance the interests of the organization and its lenders, SHP provides objective,independent advisory services to solve complex operational, financial and strategicissues.

The objective of these engagements is to identify a path to improve financialperformance and restore compliance with the bond covenants. We tailorour scope of services to each particular situation.














PROVIDE overall management of administrative components as necessary tomaximize financial recovery and render efficient closure of the case,addressing critical functions as necessary such as accounting, business office,cash management, insurance, Health Information Management, plantoperations, and security.

PREPARE and maintain a detailed work plan of overall wind down projectmanagement activities to assess and monitor progress related to this end.

EVALUATE the real assets and equipment, and execute related sales of suchassets, with particular emphasis towards understanding alternate use and anenhanced market value in final sale.

MANAGE Accounts Receivable collection processes with the intention ofmaximizing total collectible value at lowest overall cost (including final costreport settlements).

MONITOR and oversee all necessary points of regulatory compliance withrespect to appropriateness of transition of medical delivery services andrelated record retention.

BE AVAILABLE to be deposed by other constituent’s counsel in the case ifrequired.

BE AVAILABLE to testify in Bankruptcy Court if required.

FIRM OBSERVATIONS. We have seen millions of dollars left on the table bysellers. Spectrum's Post Transaction Services typically generate a minimum of3x ROI.

The business of healthcare management is becoming mo r echallenging on a daily basis. Spectrum Health Partners (SHP) is wellpositioned to assist Boards, Legal Counsel, and Foundations navigatethe multitude of objectives that must be accomplished in a sale, winddown, or closure situation. Our experience in wind down transition orclosure results in a substantially higher recovery for our clients.

The scope of services that we can offer varies depending on theindividual enterprises situation. We customize a plan that meets theneeds of the client.

SCOPE OFSERVICES

POST TRANSACTIONSERVICES


MEET OUR PEOPLE

As the President and CEO of Spectrum Health Partners, Ken is responsible for the firm’s management,which includes sales/marketing, engagement management, accounting, and information technologies.

PUBLIC COMPANY EXPERIENCE• Assisted private company with filing Initial Public Offering (“IPO”) in Q4 of 14’. Worked diligently with thecompany’s General Counsel, outside legal counsel and underwriters to complete all elements of the S-1.Engagement resulted in a very successful IPO filing in October 2014. Priced at $15, opened at $20 andcurrently trading in mid to upper 30’s

PERMANENT AND INTERIM CEO/CFO/COO

• Served as the Interim CEO of a surgical hospital that was part of a large health system. Role was expand-ed from 3 months to 12 months and involved a transaction of the 30% physician ownership interest• General Manager and Chief Financial Officer of the largest office of a national home care/home infusioncompany provider based in Chicago, actively managing two divisional operations and 125 FTEs• Permanent CFO/COO of acute care hospitals and long-term care pharmacies. Recent experience hasfocused on Interim CFO roles primarily of acute care hospitals

RESTRUCTURING, TURNAROUND AND BANKRUPTCY MANAGEMENT

• Financial and operational restructuring of a privately held healthcare staffing company based in Ohiogenerat ing a turnaround culminating in a $150M sale to a large public nurse staffing company.• Served as a financial advisor to restructuring professionals in defining turnaround strategy and operatinginitiatives for a large acute care teaching facility in the mid-South.

CEO/CFO & OPERATIONS IMPROVEMENT

• Recently served as the Interim CEO of a large Not-For-Profit Hospital based in Nevada. Worked diligentlyto complete Shared Services/Purchased Services Arrangements with the parent company• Leadership of all financial functions of a private long term care institutional pharmacy, tripling netrevenue in less than 3 years through internal growth and acquisitions• Served as the East Coast Regional Chief Financial Officer for a large public long-term care institutionalpharmacy successfully integrating seven (7) acquisitions into a single region

TRANSACTION ADVISORY SERVICES EXPERIENCE• Transactional support of due diligence, working capital settlements, unfavorable contract reviews, andpurchase accounting support for one hundred and thirty (130) distinct transactions with a combined marketvalue in excess of $9.5B• Successful in finalizing all purchase/sale transactions without any material adjustments to Final NetWorking Capital• Successful in finalizing all purchase/sale transactions without arbitration or legal proceedings related toFinal Net Working Capital• Assisted clients completing purchase transaction with integration and interim management in interimCEO/CFO roles• Completed due diligence for a major Academic Medical Center (“AMC”) in their quest to purchase a largemulti-specialty group practice• Completed due diligence for a Real Estate Investment Trust (“REIT”) in their successful acquisition of realestate, building and equipment of a 3-year old hospital asset located in Austin, TX

Ken presents insights from over thirty (30) years of experience in a variety of challenging operating andfinancial roles in the public accounting and healthcare sector. His experience ranges from organizationalrestructuring to managing organizations experiencing rapid start-up growth. Since 2001, Ken hasmanaged Due Diligence through Final Net Working Capital (FNWC) Settlements on over one hundred andthirty (130) healthcare transactions. In addition, he has regularly served as the Interim CEO and CFO ofhealthcare clients. With more than two decades of senior management experience in key financial roles inoperating companies, Ken possesses the broad technical, managerial, and strategic skill sets required toquickly assess and provide pivotal guidance in any managerial situation. Diverse exposure to differentelements of healthcare, primarily in the acute care hospital and long-term care institutional pharmacysettings allows him a rapid level of understanding when assessing larger, more complex environmentssuch as integrated delivery systems and publicly traded companies.

SELECTED ADVISORY EXPERIENCE•Due Diligence Reviews•Turnaround Management•Crisis Management•Interim Management•Operations Management•Financial Forecasting•Cash Management

INDUSTRY EXPERIENCE•Acute Healthcare•Pharmacy, Institutional Long TermCare Pharmacy•Home Health•Drug and Alcohol RehabilitationCompanies•Real Estate Investment Trust’s (REIT’s)

PRIOR EXPERIENCEKen began his career with the publicaccounting firm of Deloitte & Touchebefore moving to progressive managerialroles in acute care hospital and long-termcare institutional pharmacy settings.

EDUCATION/AFFILIATIONSKen received a Bachelor’s degree i nBusiness Administration (BBA) from theUniversity of Cincinnati, where he was amember of the Co-Op ProfessionalPractice Program. He is a member of hisState Society of CPA’s and a member ofthe Healthcare Financial ManagementAssociation (HFMA).

KENNETH P. DORAN, CPAPRESIDENT AND CEO

CONTACT INFORMATIONCell Phone: (615) 715-8947Office Phone: (615) 778-4650Email: [email protected]

SpectrumHealth PartnersSpectrumHealth Partners

Prior to involvement with Spectrum Health Partners, Will worked with nationally recognized consulting firmsin the areas of corporate restructuring and managed care. This experience involved operational andfinancial assessment, feasibility and modeling, and interim management of various healthcare organiza-tions.

SELECTED ADVISORY EXPERIENCE

• Assistant to Bankruptcy Court Appointed Examiner in assessment of operating quality and managementefficiency for 400+ long term care facilities for-profit chain.• Interim Treasury Management for 50 long term care facilities undergoing successful reorganization underChapter 11 proceedings.

RESTRUCTURING, TURNAROUND AND BANKRUPTCY MANAGEMENT

• Engineered $12M+ turnaround of financial operations to a 257 licensed bed safety net teaching hospitalincluding radical improvement of reimbursement through clinical documentation improvement and relatedcase mix, new program development, and operating expense controls. Revenue cycle was rebuilt through ITsystem redesign, resulting in significant stability of days cash on hand.• Turnaround of financial operations in a freestanding community 234 licensed bed hospital includingaccounts receivable restructuring, radical improvement of days cash on hand, and successful defense offacility bond rating.• Operational restructuring of troubled 116 licensed bed hospital facility through staff reductions, non-sala-ry expense controls, and business office redesign. Bond compliance was successfully reestablished andsuccessful facility merger eventually executed.

CEO/CFO & OPERATIONS IMPROVEMENT

• Interim Chief Financial Officer and Corporate Controller for 900+ licensed bed four-hospital Chapter 11bankruptcy case. Fiscal management responsibilities including accounting and financial reporting, cashmanagement, and operating and capital budgeting, third party reimbursement, tax functions and compli-ance.• Interim Chief Financial Officer of 420 licensed bed for-profit hospital with significant operating losseseventually stabilized through labor management and non-salary reductions to breakeven EBITDA.• Interim Chief Financial Officer of 305 licensed bed community hospital with IT issues surrounding generalledger and business office implementations. Led successful redesign of both modules to implementfinancial reporting and strengthen days cash on hand.

TRANSACTION ADVISORY SERVICES EXPERIENCE• Transactional and due diligence support of successful $33.5M nursing home sale involving 403 licensedbeds.• Integration support to 70 licensed bed hospital acquisition from for-profit proprietary system to freestand-ing governmental entity. Transition responsibilities included transaction settlement, cash management/accounting reorientation and IT systems development.

Will has over 25 years of experience working with hospitals and hospital systems primarily in the not-for-profit sector and is based in Austin, TX. He has an extensive background in hospital operations on theChief Financial Officer level. As a senior executive of more than two dozen hospitals or hospital systems, Willhas been involved with a wide variety of medical staffs and boards, often providing crisis management inthe most difficult of circumstances. Through his broad exposure to issues of healthcare finance, he hasdeveloped a keen ability to quickly adapt, interpret, and assume the lead in management situations requir-ing strengths with financial operations, strategic assessment, financial modeling, systems development, andcapital planning.

SELECTED ADVISORY EXPERIENCE•Turnaround Management•Crisis Management•Interim Management•Operations Management•Due Diligence•Financial Forecasting•Bankruptcy Advisory •CashManagement

PRIOR EXPERIENCEWill began his career in a variety o ffinancial management capacities foracute care healthcare facilities, withresponsibilities spanning financialoperations, reimbursement and financialplanning, and information systemdevelopment.

EDUCATION/AFFILIATIONSWill obtained his Bachelors of Arts i nAccounting from The University o fKentucky and holds a Masters o fBusiness Administration from VanderbiltUniversity’s Owen Graduate School o fManagement. Will is a Certified PublicAccountant, a Certified InsolvencyRestructuring Advisor, and a Fellow i nHealthcare Financial Managemen tAssociation (HFMA). In 2005, he wasawarded the Follmer Bronze award fromHFMA in recognition of his distinguishedservice in the area of healthcare finance.

WILL MOORE, CPA, CIRA, FHFMAPARTNER



SELECTED ADVISORY EXPERIENCE• Worked with Med-Cath team in selling its interest in the hospital company• Worked with AR-MED in purchasing 70% ownership in an individual hospital• Negotiated debt agreement for a fully leveraged buyout of hospital as well as the purchase of a 17physician cardiology practice• Lead the financial operations of merging a hospital and cardiology practice• Implemented changing the cardiology practice to a provider-based office and adding two moreprovider-based offices• Implemented contracts for a primary source vendor on major supply items• Lead change in operations (business office and case management) regarding determination of patientstatus• Implemented review process of all Medicare patient status by a third party physician reviewer• Lead roll out of documentation improvement effort at ten hospitals, resulting in an improvement averageof more than $500,000 per hospital annually at 12 hospitals• Implemented the rollout of a productivity system companywide to improve efficiency in staffing andreduce salary, wages and benefits

ASSISTING FACILITY CEO'S WITH THE TECHNICAL OVERSIGHTS OF THE FACILITY• Monitoring daily reports to determine proper allocation of resources to obtain maximum improvement inoperations of hospitals• Leadership for various departments of accounting, business office, materials management, medicalrecords and information systems• Provide analysis of financial statements to corporate leadership, hospital executives, hospital team leadersand physician investors as well as make recommendations for improvements

CEO/CFO & OPERATIONS• Served as an Interim CEO and CFO with large healthcare providers along with other various facilities• Worked with facility CFOs and CEOs to improve financial operations of facilities in the areas of revenuecycle, managed care contracting, materials management, productivity, case management and clinicaldocumentation improvement

Mark has over 25 years of experience in the healthcare industry He brings with him an extensive executivebackground in providing senior management leadership in various healthcare organizations, financialrestructuring along with merger and acquisition due diligence. Prior to joining SHP, Mark worked in varioussenior management positions within the MedCath, Inc. Hospital System.

EDUCATION/ AFFILIATIONS

AMERICAN INSTITUTE OF CERTIFIEDPUBLIC ACCOUNTANTS

HEALTHCARE FINANCIAL MANAGE-MENT ASSOCIATION-Fellowship Status-Arkansas Chapter Past President-Gold Merit Award-Founders Medal of Honor Recipient

KNIGHTS OF COLUMBUS

AMERICAN HEART ASSOCIATION-Central Arkansas Chapter BoardMember

ARKANSAS BUSINESS CFO OF THEYEAR 2012 – LARGE PRIVATECOMPANY

MARK A. HARTMAN, CPA, FHFMAPARTNER

CONTACT INFORMATION

Cell Phone: (501) 690-9540Office Phone: (615) 778-4650Email: [email protected]


MERGERS & ACQUISITION EXPERIENCE• Developed a merger and new facility model for the merger of a 600+ bed facility with a smalleracademic facility including the following key elements: New facility Costs; Mothballing of the old facility;Operational Costs; All current service lines; Expansion of certain services; Current best practiceoperating efficiencies between the two organizations; Estimation of Efficiencies from new facility; Returnon Investment and Calculation of Breakeven point.

• Performed rapid Strategic, Financial, and Operational due diligence on 12 West Coast for-profitfacilities for a potential buyer. Financial analyses included in-depth valuations of Accounts Receivableand trending of operating performance over previous three-year period. Opinions on ExecutiveManagement of each facility were developed through interviews and consideration of the facilityperformance.

• Developed a detailed Zero-Based Operating Expense Budget for 600-Bed replacement facility thatincorporated best practice staffing guidelines identified through benchmarking research and relevantlabor standards. Provided consultation on operational limitations and provided recommendations foreffective implementation of staffing and other expenses at a West Coast Academic Safety-net facility

STRATEGIC, OPERATIONAL AND FINANCIAL PLANNING AND ANALYSIS• Developed and delivered a rapid approach to financial planning and analysis methodology providingservice line analysis as well as detailed procedure level financial analysis in less than 6 weeks for a multi-facility for-profit organization. Other analytical capabilities include physician profiling, payor contractingsupport, and a wide range of analyses usually available only after 6+ months of a decision supportsystem implementation.• Worked with leaders across 4 regions to manage the five-year strategic (ISOFP) and operational planfor a $4B faith-based organization. As Interim Director of Strategic Finance, oversaw a $130+ millionCapital Budget and oversaw financial aspects of all strategic initiatives.• As AVP of Budgeting and Financial Analysis, lead the planning and coordination of the Five-YearStrategic Operational and Financial Plan while tracking a comprehensive financial improvement plan fora Catholic safety net hospital in Washington, DC.

RESTRUCTURING, TURNAROUND & BANKRUPTCY MANAGEMENT• A key contributor in over 25 restructuring and turnaround projects ranging from academic medicalcenters to rural critical access hospitals.• Financial lead for Bond Covenant study for investors encompassing strategic planning, revenuecycle, organizational structure, three-year pro forma development, supply chain assessment, patientflow-through, development of implementation plan, productivity benchmarking analysis.Identification of $27M of annual improvements. Managed implementation plan resulting in $15Mimprovement to bottom line in the first year.• As part of an 18-month turnaround management team, renegotiated all physician agreements fora large west coast teaching facility including a 100+ member group that provided a wide array ofservices including patient care, administration, and teaching support.• Restructured operational and financial staff as Chief Financial and Operations Officer for a 150+hospital-based physician plan advancing physician strategies thru recruitment, and operational andfinancial improvement. Improved Revenue Cycle Operations expanding staff and facilities resultingin a 15% improvement to net revenue realization.

Seth is a healthcare financial professional with over 30 years of experience in healthcare consulting andinterim management based in Nashville, Tennessee. As a partner with a national consulting company,Seth’s track record in performance improvement engagements ranges from comprehensive turnaroundsto projects focused on revenue cycle, physician realignment, organizational restructuring and laborproductivity. His engagement list includes multiple large-scale operational improvement efforts,governance and management assessment, labor management, organizational restructuring, sharedservices improvement, and departmental process redesign.

He has been a key utility player in a wide range of performance improvement initiatives from thestrategic executive perspective to the hands-on analysis and management of operational issues.

INDUSTRY EXPERIENCE

•Community Based Hospitals•Large Urban Safety Net•Academic Medical Centers•Operational and Financial Aspectsof Physician Practices

•Multi-Facility Faith-based Organizations

PRIOR EXPERIENCE

Seth gained his core understanding ofhealthcare operations through theimplementation of 45+ Decision SupportSystems. The financial and modelinganalysis from this early experience haveprovided the skills and experience todeliver meaningful insight in a wide varietyof healthcare environments.

EDUCATION/AFFILIATIONS

Seth holds a BA in English Literature fromthe University of Richmond where hegraduated in three years focusing on hiswriting and communication skills. He alsoholds an MBA from Virginia CommonwealthUniversity where he completed 35+ coursehours in Health Services Administration. Healso completed 30 hours toward a Master ofAccountancy at the Massey GraduateSchool of Belmont University in Nashville,TN. His speaking engagements includemultiple State and National level HFMA andother organization conferences on subjectsranging from Service Line Management, toCommunicating Financial Information toPhysicians to the Financial Aspects of ITPlanning.

SETH C. SHARPEPRINCIPAL



Prior to joining Spectrum Health Partners, Brent was employed by five publicly traded healthcare companies,and has consulted for three of those five, as well as two other publicly traded healthcare organizations. He hasserved both as permanent and interim CFO in facilities ranging from 64 beds to over 500 beds. Most recently,he served as a Division Vice President - Finance, overseeing a thirty-six (36) hospital division with $3.5B in annualrevenue.

RESTRUCTURING, TURNAROUND AND BANKRUPTCY MANAGEMENT• Turnaround of $5.5M in one year at 82 bed facility. Included systems conversion, restructuring of staffing,revenue cycle re-build and contract negotiations.

• Turnaround of 100 bed facility resulting in EBITDA increase of 45% in year one. Instituted industry standardprocedures for scheduling and staffing. Part of a volume building team which produced greater than 15%increases in ER visits, Admissions, and Surgery.

CORPORATE SERVICES RESPONSIBILITIES

• Shared oversight of Division Financial Operations of 36 hospitals and over $3.5B in annual net revenue.Provided leadership in identifying, prioritizing, developing, and executing on various strategies for the Division’sfacilities. Strategies included volume improvement, revenue maximization, expense control, and capitalmanagement.

• Revenue Cycle Director for a 13 Hospital For-Profit Chain, representing over 800 licensed beds. Responsibilitiesincluded oversight of Business Office Operations, HIM Operations, and Chargemaster Services. Also includescommunication with hospital CFO’s on operational improvements. Significant improvements in coding accuracy,A/R days reduction, and denials solutions.

CFO & OPERATIONS IMPROVEMENT

• Acquisition/Transition leader essentially working as co-project manager for conversion to Cerner and McKessonclinicals. Provided oversight for teams to insure finance representation on build strategy, testing, implementationand remediation.

• Served as Employed and Interim CFO with large healthcare providers.

• Worked with facility CFO’s and CEO'S to improve operations in the areas of revenue cycle, POS collections,productivity, materials management, contract negotiation, case management, clinical documentationimprovement, and internal controls.

Brent has over 25 years of experience working in hospitals and hospital systems, primarily in the for-profit sectorand is based in Nashville, TN. Brent is a seasoned healthcare CFO with significant operations experience. Askilled communicator who is astute and innovative, Brent utilizes a team-building, results-oriented managementstyle. Brent possesses strong problem-solving skills. His approach also has produced a history of developingACFO’s for promotion.

SELECTED ADVISORY EXPERIENCE•Due Diligence Reviews•Turnaround Management•Crisis Management•Interim Management•Operations Management•Operations Improvement•Financial Forecasting/Modeling•Cash Management/13 week Cash Flow

INDUSTRY EXPERIENCE•Acute Healthcare - For Profit•Specialty Hospitals - For Profit•Home Health

PRIOR EXPERIENCEBrent began his career with HCAserving in increasingly responsiblefinancial management roles, Over time,he increased his experience andresponsibilities in senior financialmanagement roles. Most recently,served as a Division Vice President-Finance overseeing a thirty-six (36)hospital division with $3.5B in annualrevenue.

EDUCATION/AFFILIATIONSBrent received a Bachelor’s degreein Business Administration (BBA) fromHarding University in Searcy, Arkansas.

BRENT V. WHITEPRINCIPAL



ASSISTING FACILITY CEO'S WITH FINANCIAL OVERSIGHT OF FACILITY• Overseeing daily reports to ensure proper allocation of resources in order to obtain maximum improvement inoperations of the hospitals.• Provide leadership for departments such as accounting , business office, materials management, informationsystems and medical records• Prepare analysis of financial statements for corporate leadership, hospital executives and team leaders, alongwith physican investors as well as providing recommendations for performance improvements.

EDUCATION / AFFILIATIONS

Phil obtained his Bachelor's degree inBusiness from the University ofTennessee and attended AMI'sCorporate College for Healthcareexecutives. Phil has served on theBoards of the Federation of AmericanHospitals and the Georgia HospitalAssociation. He was an EducationSpecialist in the United States AirForce.

Phil has over thirty (30) years of experience in healthcare finance and operations. His background includeshospital finance as an auditor for Blue Cross & Blue Shield, a reimbursement specialist for AMI/Tenet, anda hospital CFO.

The majority of Phil’s career has been in hospital operations as a Hospital President/CEO in the AMI/Tenethealthcare system. During the past ten years, he has served as interim President/CEO of various hospitals.

Phil has extensive experience with corporate structure, hospital boards, medical staff, community andemployee relations. He has been involved in several strategic and financial turnaround situations.

INTERIM HOSPITAL OPERATIONS• Served as Interim President/CEO of various hospitals, including community, faith based and proprietarysystems.• Responsible for organizations ranging from 50 bed specialty hospitals to 600+ bed multi-facility medicalcenters.• Involved in successful turnaround situations, going from annual operating losses to profitableorganizations.• Successfully stabilized medical staff and employee relations during leadership transition.

HOSPITAL OPERATIONS• Served as President/CEO in acute care hospitals. A significant achievement of his career was thesuccessful conversion of community hospitals to the private sector, improving the quality of care andthe financial status of those institutions.• Provided growth in medical services through successful approvals of certificate of needs.• Created growth of hospital services and financial success through medical staff development, includingrecruitment and integration programs.• Provided leadership in the construction and opening of a replacement facility for a 160 bed acute hospital.

HOSPITAL FINANCE• Served as a Medicare/Medicaid auditor with Blue Cross/Blue Shield of Tennessee. Responsible forassuring appropriate reimbursemnt for these programs and healthcare facilities.• Reimbursement accountant for AMI/Tenet. Prepared costs reports and financial accounting for governmentprograms.• Served as CFO in a full services acute care hospital. Responsible for business office functions, budgets,FTE controls, cash flow, and day-to-day accounting functions.

PHIL SHAWPRINCIPAL



Tim is a Principal in Spectrum Health Partners. Based out of Ocala, Florida, he has over thirty-five(35) years of diverse leadership experience in healthcare administration, operations and finance.Tim has extensive experience with for-profit and non-profit hospitals, health systems and a largemulti-specialty group practice leading organizations at the CEO, COO and CFO level.

Over the past fifteen (15) years, Tim has directed hospitals as CEO ranging in size and complexityfrom a 60-bed start-up facility to a 744-bed tertiary referral center. The depth of his progressiveexperience affords invaluable perspective into strategic and operating challenges from a consultingstandpoint.

TIM MENTON, FACHEPRINCIPAL



HOSPITAL FINANCE• Served in financial leadership positions in various hospital facilities with responsibilities forrevenue cycle, budgeting and cash flow• Designed, implemented and monitored effectiveness of financial reporting systems• Expanded leadership responsibilities deeper into operating and executive capacities•Tennessee CPA certificate (inactive)

HOSPITAL OPERATIONS• Worked in conjunction with hospital boards and medical staffs, achievements includeaccreditation of a Comprehensive Cancer Center, established dedicated Children's Hospital, LevelI Trauma Center and Liver Transplant Program• Improved financial operations and quality outcomes and expanded clinical services and marketshare• Successfully managed several major hospital construction and renovation projects ranging insize up to over $160 million• Hospitals managed recognized as Top 100 Hospitals nationally

INTERIM HOSPITAL OPERATIONS• Served as Interim CEO for various hospitals which included community, public and proprietaryhealth systems• Responsible for organizations ranging from 50-bed sole community hospital to 744-bed tertiarycare facility with a medical staff or 400+ physicians• Successfully stabilized medical staff and employee relations during leadership turnaround• Organized effective financial turnaround initiatives

EDUCATION / AFFILIATIONS

Tim obtained his Bachelors ofScience in Accounting from FloridaState University and holds a Mastersin Business Administration (MBA)from Florida Atlantic University. Tim isa Fellow in the American College ofHealthcare Executives (ACHE) andserved on the Board for the CentralFlorida Chapter. Tim is also active inthe health care communities at theFederal and State level focused ondeveloping health care policy.


www.spectrumhpllc.com


341 Cool Springs Blvd, Suite 305Franklin, Tennessee 37067

Office: 615.778.4650www.spectrumhpllc.com

November 2018

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