Not-For-Profit Medical Society

Company Overview

Not-For-Profit Medical Society - Our client (the "College") is an international medical society designed to advance patient outcomes through innovative respiratory medicine education, clinical research and team-based care.  The Society is a not-for-profit corporation with more than 18,500 members representing over 100 countries.

Engagement Overview

The College began to incur operating losses while constructing a new $24 million corporate office facility and also beginning implementation of a system-wide IT upgrade, requiring mid-seven figure investment.



The new corporate office facility is 100% financed while the IT upgrade is partially financed.



Fort Dearborn Partners (FDP) was retained to review management's operating plan with the goal of improving profitability.  Our work included:

- Interviewing all senior management and certain members of the Board of Regents.

- Assessing corporate governance procedures.

- Analyzing revenue sources and identifying where the College could increase fees.

- Performing detailed analyses of all expense categories and identifying several areas for expense reduction, resulting in increased profitability.

- Evaluating the organizational and reporting structure and recommending changes that improved communications and decision-making.

- Analyzing sources and uses of cash related to the construction and financing of the new corporate office.

Results

Based on our analyses, Fort Dearborn identified over $3.0 million in profit improvements in the form of revenue increases and expense reductions.



FDP also recommended elimination of non-strategic programs, reduction of the number of board meetings from 6 to 4, and elimination of certain committees.


After reviewing the organizational structure, FDP proposed several changes to enhance decision-making throughout the College.