Case Study

Delivering a range of data, IT and operational solutions pre- and post-close to establish a new regional leader in healthcare



The client

U.S. Orthopedics Partners was created by the Thurston Group, a Chicago-based private equity firm focused on investments in the healthcare market space, in cooperation with FFL Partners, a San Francisco-based private equity firm, as a management services organization to provide a range of administrative and management functions essential to the success of contemporary healthcare enterprises. Together, the Thurston Group and FFL Partners acquired Southeast-based Mississippi Sports Medicine & Orthopaedic Center to serve as an anchor for the new organization. The solutions provided by U.S. Orthopedics Partners would enable affiliated providers to manage the entire continuum of musculoskeletal care, with state-of-the-art ambulatory surgical facilities, full clinical capabilities, advanced imaging and rehabilitation services.

The challenge

Mississippi Sports Medicine’s leadership team was comprised of seasoned professionals with distinguished backgrounds, but they lacked the scale and structure to support accelerated growth.

Similarly, the enterprise was sufficiently equipped to function as a single-market healthcare center, but it lacked the IT and operational infrastructure to deliver network-level financial management, data analytics and business integration services.

The solution

E78 Partners was initially retained pre-close to conduct due diligence for multiple business functions. The company was then retained post-close to enhance finance and accounting functions as well as to build and launch an integrated data management system. Initiatives taken by E78 Partners included:

      • Identification and quantification of risks prior to close, followed by development of actionable strategies to mitigate these risks moving forward
      • Establishment of treasury procedures to improve overall cash management, accelerating collections and deferring payables with minimal disruption to operations
      • Enhancement of FP&A to keep critical information flowing to decision makers and to clarify variances in business performance
      • Detection of existing gaps in business process and resources, filling roles where needed on an interim basis while transitioning to full-time personnel
      • Facilitating the establishment of a world-class F&A team

    The result

    Enterprise goal of bringing all acquired practices up to world- class standards as measured by all relevant KPIs, including:

    • 15-25% Enhanced revenue per physician

              Patient Flow & Scheduling, Billing & Collections, Network Pricing

    • 10-15% Improvement in working capital efficiency

              Inventory rightsizing, Leveraged investments in IT platform

    • 5-15% Increase in operating margins

              IT-enabled process improvements, Finance & accounting function enhancements, Clinical operations improvements

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