Wayside House [WH] is a non-profit 501 (c)(3) treatment program for women with substance abuse and co-occurring conditions located in Delray Beach, Florida. Primarily funded by charitable gifts and state, county and local reimbursements, Wayside House realizes an annual revenue of $2.5M.
Demonstrated gaps in senior leadership and a decline in occupancy, WH struggled to maintain solvency in an increasingly competitive environment. With audits and certifications of administrative and operational capacity pending, WH’s Board of Directors engaged Knowledge Capital Group [KCG] to evaluate the current situation, recommend and implement tactics to help improve financial performance, and ensure its continued solvency.
Assessment Process & Findings
KCG’s team spent one week onsite interviewing a broad array of staff and key stakeholders as well as conducting deep dives into key operational processes – cash management/finance, insurance, sales/marketing, and clinical delivery. Results were rapidly compiled and presented to the board for review and next step authorization. Key dimensions and findings of the report out were:
- Leadership – Serious gaps and discrepancies were identified; Immediate change in senior leadership recommended
- Staff – Need for aptitude and capabilities assessment for key Finance, Clinical, Administration and Marketing teams
- Finance – Identify a firm to help with a forensic financial audit. Reimplement an accounting system and thoroughly review and revamp all financially related processes
- Communication – Review and revamp all external communication to more accurately depict WH’s current mission, vision and outcomes as well as better manage expectations around financial requirements for admission
- Clinical Practice – Engage local and regional experts as well as representatives from governing and accreditation bodies to review clinical processes and assist in establishing best practices and accountability processes and measures
- Facility Management – Retain local contracting service to complete deferred maintenance projects and ensure facilities and grounds were maintained within code
- Operations – Review processes and procedures as well as vendor service agreements – ranging from transportation and food to IT and environmental services.
Turnaround & Transformation Outcomes
After contemplating the assessment findings, the Board removed the current leadership and asked KCG to partner with their Executive Committee to handle the day to day operations.
After nearly five months of systematically implementing the recommendations from the assessment, KCG concluded its work. Beyond helping the Board stabilize the organization and successfully recruit a new Executive Director, KCG and the Board also accomplished the following:
- Successfully passed two state mandated audits [DCF and FAA] and a county-sanctioned certification [NPF] in the areas of medical records, compliance, human resources and financial reporting
- Reimplemented QuickBooks, established new accountability standards and developed new policies that governed everything from cash management and reconciliation to insurance verification and budgeting
- Secured $40,000 of unpaid agency reimbursements
- Restructured the clinical program’s delivery through the facilitated development of 57 clinical best practice protocols and training guides
- Implemented a new fee structure and completely revamped the intake and insurance verification processes
- Completed the renovation of a new, private pay wing of the facility and completed all deferred maintenance projects
- Redesigned external communication content as well as reskinned the website to be more indicative of the mission