Kurron: Health Care Restructuring Pros
Jan 24, 2005
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Source: Bank Loan Report, Thomson Media, By Joy Ferguson
Some have called Corbett Price a businessman with angel’s wings. That’s because Price’s line of work — health care restructuring — could be considered heaven-sent, especially in today’s tough business world. Price, who sat down with BLR to discuss his business, is chairman and CEO of Kurron Shares of America, a management, consulting and advisory company focused on the health care industry.
Kurron, which Price and a diverse group of experienced health care professionals from the Hospital Corporation of American (HCA) founded in 1990, is dedicated to the restructuring and management of health care systems around the US. Because of its special niche in the restructuring industry (its only focus is on health care) and its top-notch professional expertise (Price, for example, has nearly 25 years of health care business experience), Kurron is a major player in the industry. In fact, the firm is drawing the attention of health care systems across the world seeking restructuring and management services.
Kurron not only focuses its expertise on the restructuring and management consulting aspects of investor-based health care systems, but it also caters to faith-based and nonprofit-based systems. The firm works with all facets of health care, from nursing homes and assisted living to hospitals and physician group practices.
To be sure, the work that Kurron performs for all these types of organizations is vital for the communities involved, and on a larger scale, for society, Price said.“You can’t have a productive society if you don’t have a healthy one,” said Price. Whereas other industries may be able to survive or even become more competitive as some companies are forced to liquidate, the health care industry follows the beat of a different drummer altogether. Closing down the only hospital in a small community would be disastrous, for example. That’s where the mission of Kurron comes in, and why Price does what he does. While some large accounting and consulting firms include health care as one of the many industries they may cover, Kurron’s sole dedication to health care is where the firm differs. And the hands-on approach that Kurron takes is vital to its success in turning around weak health care systems.
Case in point is Kurron’s work with Health Risk Management, a holding company out of Minneapolis. Kurron was called in to review the company for a potential major investor and discovered significant operational issues. “We tried to save the company and keep it intact, but because of the financial drain that Health Risk was experiencing from its Medicaid [health maintenance organization (HMO)], we had to make a conscious decision. We sold off the HMO to another company and we also spun out its [third party administration business] and sold the information systems group.”
The outcome from a creditors point of view was successful, said Price, because Kurron was able to capture the residual value of the firm by moving rapidly and breaking up the company.
Kurron’s work has also made a major impact on many health care systems in other countries. The company performed a financial restructuring for the American British Medical Center in Mexico City (formerly American British Cowdray), which is the backup hospital to the president of Mexico.
In addition, Kurron has done work in Jamaica and Bermuda. The government of Bermuda requested Kurron’s service in order to evaluate the status of its overall health care system and how it could improve its operations and financial management. Kurron also reviewed the government’s reimbursement program for health care. The Kurron Report is now the Bermudian government’s benchmark report as it moves toward a better health care system.
Going forward, Price expects constant and rapid change in the health care industry, something he views as a good thing for Kurron. Health care represents a significant portion of the US’s Gross National Product and the challenge for the industry lies in the competition it faces in receiving funding from a very limited source. There is greater pressure these days on health care because of limited government dollars, said Price. “This puts pressure on investor-owned systems, as well as public and nonprofit health care systems. It cuts across the health care spectrum, from pharmaceuticals to overall providers and insurers.”
As a result, such pressure on the industry creates failures. But of course, Kurron’s growth will thrive in this environment. “Kurron benefits as a result because there will be more distressed situations,” said Price.While more competition from start-up restructuring firms in this niche of the restructuring industry is expected, Price is proud of the 15 years of experience that Kurron has under its belt. This is something he says is fundamental to its success. “A firm must have a cadre of specialists who are used to working closely together and who also have a uniform approach that has yielded results in the past.”
In addition, the firm’s growth has been noteworthy — it has grown 30% each year for the past four years — and more growth is expected. Kurron is currently looking at expanding in terms of the capital necessary for implementation and it’s also in discussions with major consulting firms as it considers joint venture possibilities, Price said.
Price is also proud of the firm’s diversity. “In terms of diversity, health care is an industry that touches every facet of our society,” he said. “We recognize that the diversity [of the staff at Kurron] is important for us to be able to have a successful impact for providing solutions for companies. You must have an understanding of the backgrounds of the people in the industry you are serving.”