For most of its 14-year existence, Cambio Health Solutions has been a consulting firm trapped inside bricks-and-mortar companies, but the Brentwood, Tenn., turnaround consultants have been set free.
Quorum Health Resources, a wholly owned subsidiary of Triad Hospitals, Plano, Texas, announced plans to sell Cambio to the unit's employees. Terms were not disclosed. Triad acquired the unit, which manages not-for-profit hospitals, in its 2001 acquisition of Quorum Health Group.
Thomas Singleton, a founder of Cambio and its president and chief executive officer, said a consulting firm like Cambio is best owned by its employees. "There's been an interest on the part of the employees to own the company for quite a while," Singleton said. "I think that not being owned by Triad will open up some markets for us that were not available to us."
Triad officials have talked of selling Cambio for at least two months because the turnaround unit was being passed over by some potential clients who competed with Triad. Dan Moen, executive vice president of development and management services at Triad and CEO of Quorum Health Resources, said in a recent interview that five struggling hospitals have turned down a Cambio bid to provide turnaround services in the past year because the hospitals competed with Triad facilities (Dec. 8, p. 28).
Triad owns or operates 53 hospitals. Quorum Health Resources manages about 200 hospitals, including 160 with full management-services contracts. Cambio has 10 clients. Triad does not disclose financial results for Quorum Health Resources or Cambio.
Cambio was formed in 1989 as a division of Hospital Management Professionals, Singleton said. Quorum Health Group acquired that company in 1992 and set up the division as a wholly owned subsidiary named Intensive Resource Group. The subsidiary took on the Cambio name in 1999.
In addition to turnarounds, Cambio also consults with CEOs looking to improve operational performance in specific areas such as accounts receivable or case management, Singleton said.
Singleton said Cambio's 50 professional employees would have the opportunity to buy shares in the company. Eventually, he said, he hopes to expand Cambio's consulting offerings beyond acute-care hospitals to other healthcare facilities. There are no plans to own and operate hospitals, he said.