When National Medical Enterprises announced that it was enlisting the elite international consulting firm of McKinsey & Co., it joined some select healthcare organizations and Fortune 500 companies.
For NME, New York-based Mc-Kinsey will provide six full-time analysts from its Los Angeles office to oversee the massive review.
Diana Takvam, an NME spokeswoman, said the hospital chain seeks to redesign itself to focus on its acute-care hospital business.
Considered the "special forces" of management consultants, McKinsey is probably best known for providing clients with work that's said to be meticulous, behind-the-scenes and expensive. Single assignments can carry price tags of as much as $1 million.
"The Firm" as it calls itself, carries an aura of power and prestige as it tries to remake client organizations.
In recent years, McKinsey analysts have used their five-phase approach-analysis, idea generation, review/decisionmaking, planning and implementation-on healthcare giants such as the Cleveland Clinic, where it reviewed the operations of its 500-physician multispecialty clinic as well as its Florida outpatient clinic and hospital.
In 1990, McKinsey advised the clinic to either bail out of its money-losing Florida enterprise by selling its Cleveland Clinic Florida outpatient center or ending its affiliation contract with North Beach Hospital in Fort Lauderdale. The clinic decided to stay in Florida and acquired North Beach from HealthTrust-The Hospital Co.
Other McKinsey clients in recent years have included American Medical International and Voluntary Hospitals of America.