Meridian Healthcare Partners led the turnaround of Kern Medical Center from a $21.2 million net loss for the fiscal year that ended June 30, 2014 to a net income of $7.7 million a year later through improvements in the revenue cycle, labor productivity, physician enterprise performance, operational efficiencies, a focus on profitable growth, and managed care contracting strategies.
Kern Medical, a 222-bed county-owned safety net hospital, serves the community’s 860,000 residents as the only trauma center and teaching hospital. The Medical Center’s specialty and primary care clinics treat over 110,000 outpatients each year and many of the area’s physicians graduated from its graduate medical education programs. However, the hospital faced potential closure due to $3 million a month losses.
In December 2013, Kern County entered into a five-year management agreement with Meridian Healthcare Partners to bring financial solvency, provide stable leadership, and transfer the medical center from operating as a county department to a public hospital authority. Meridian initially assessed the organization’s issues to develop plans addressing the medical center’s leadership, financial controls, operations, information systems, labor, service quality, medical staff, and academic programs. Within 18 months, Meridian achieved the financial results necessary to allow the hospital to continue its mission as a vital resource in its community.