In early 2011 HCMS was asked to carry out both an operational audit and a financial review of a care-home group consisting of c. 20 homes. All of the homes were located in England.
The group had been with the lender’s restructuring team for over 12 months, and whilst independent financial business reviews had been undertaken during his time, the lender wanted an independent sector specialist’s viewpoint. The objective was to enable the creation of a turnaround strategy for the group.
Working closely with the business owners, HCMS completed the detailed operational reviews at the homes within 9 working days. The final report summarised the key issues, home by home, and clearly identified areas where improvements were required. The completed review found that that whilst 9 homes were performing well and 3 homes had some occupancy issues, there were several homes within the group with serious problems. As a result, management effort could be focused on these homes and, as part of the review, HCMS prepared action plans for immediate implementation.
In addition to the identification of operational issues, significant savings/cost reductions were identified throughout the homes and the Head Office function.