A 166 bed, 200,000 square feet acute hospital, part of a major regional health system in the Southwest, was in trouble. chi principals, employing the innovative techniques discussed here, successfully redefined and redeveloped an underperforming asset to meet these objectives:

OPTIMIZE REVENUE OPPORTUNITIES

REDIRECT EXISTING RESOURCES

MONETIZE THE ASSET

IMPROVE FINANCIAL POSITION

MAINTAIN SERVICES IN THE COMMUNITY

Result: Cash was generated to effectively retire outstanding debt. The resulting profitable multi-specialty, sub-acute facility was subsequently sold to Montecito Medical, a private equity firm, with a degree of competitive control retained to protect the remaining system in the regional market.