Restoring liquidity to home & hospice care

A $1 billion private-equity owned home and hospice personal-care service provider faced liquidity challenges amid wage inflation and soaring interest rates. The company came to AlixPartners to scope out an ambitious cost right-sizing strategy that restructured regional operations, installed cash-flow forecasting, and rapidly reduced overcapacity of staff—all while maintaining care standards in facilities across over 30 U.S. states. 

AlixPartners implemented a $50+ million cost savings plan across labor and non-labor facets of the business, trimming 5% from the cost base in eight weeks. We developed a “snap-to-grid” framework to align clinical and non-clinical support capacity, and created KPIs and benchmarks for staffing to enable ongoing management.

We simplified regional operating structures for both operating divisions, ensuring home-office support for satellites. These transformations allowed care-workers to do their best work across the continuum of services.