M&A/Strategic Advisory

• Provencio Advisory (PAS) provided advisory services to a regional Health System when it acquired 4 for profit hospitals in southern California
• The client was faced with several challenges related to the acquisition including:
• Transitioning corporate services back to the hospitals:
• Creating Human Resources infrastructure
• Outsourcing payroll function
• Contracting for new insurance and benefits offerings
• Developing and structuring plan for technology services including outsourcing
• Creating legal function
• Building managed care contracting capabilities
• Managing the transaction:
• Developing accurate prospective cash flow forecasting (daily)
• Forecasting borrowing base on AR financing
• Identifying amounts subject to the working capital settlement arrangement
• Performing purchase accounting
• Creating 'local' operating model:
• Developing budget and performance measurement process which tied to EBITDA goals/requirements
• Establishing local purchasing and contracting relationships and assigning contracts
• PAS was an important team member helping address these challenges and providing executive leadership and analytic support for these major workstreams

Back