The struggling 60-bed Rehoboth McKinley Christian hospital in Gallup, New Mexico hired NewLight Healthcare to improve profitability and avoid closure. NewLight focused on growing revenue through new services, improved facilities, optimized staffing, and renegotiated contracts. They increased admissions by 32%, surgeries by 69%, ER visits by 11%, and collections by 17%. As a result, the hospital achieved a $3 million profit in 2015 compared to a $4 million loss previously, successfully turning it around.

1. GALLUP, NEW MEXICO
Rehoboth McKinley Christian Health Care Services is a 60 bed licensed hospital that was struggling to remain
open. In 2014, the Board of Trustees and Administration had exhausted all cost cutting opportunities after
failing to meet their bond covenants. The Board was facing the difficult reality that their hospital may close.
NewLight Healthcare was contracted to improve profitability and grow revenue.
Rehoboth McKinley Christian Health Care Services
Case Example
+32% in Admissions
+69% in IP Surgeries
+6% in OP Surgeries
+11% ER Visits
+11% OP Visits
Renegotiated Contracts
Identified Specialty Needs
Improved Facilities
Optimized FTE Hours
+ 17% in Collections
+38% in Net Revenue
$3MM Net Income for FY15
+$7MM Net Income Turn Around
NewLight Healthcare was able to bring the only hospital that serviced
the local community of Gallup, New Mexico back to profitability and
avoid the devastating loss of jobs by focusing on growth.
KEY TO SUCCESS
Decline in Inpatient ADC
Decline in Net Income
Net Income Shortfall
-58%
-400%
-$4MM
RESULTS

2. Approach
NewLight Healthcare’s philosophy and approach focuses on growth. When a hospital has
exhausted all the cost cutting opportunities, the only viable long-term approach for
sustaining profitability is growth.
NewLight Healthcare utilized this approach to help Rehoboth McKinley Christian Health
Care Services return to a position of sustained profitability.
Patient Volumes
When NewLight Healthcare began its review, Rehoboth McKinley Christian faced
diminishing patient volumes. Its Inpatient ADC was down 58% from 2013; Outpatient
Testing had double digit declines; and there was strong Patient Outmigration, over 40%,
due to a reputation of poor quality, community relations, and financial performance.
By analyzing the factors causing the declines in patient volumes, NewLight Healthcare
was able to identify opportunities to grow both the topside and bottom line.
Rehoboth McKinley
Christian Health Care Services
Gallup, New Mexico
Case Example © 2015 NewLight Healthcare. Page 1

3. Rehoboth McKinley
Christian Health Care Services
Gallup, New Mexico
Case Example © 2015 NewLight Healthcare. Page 2
New Services & Enhanced Productivity
The health care industry is a service industry. Like any service industry, improvements to
customer service and the introduction of new service offerings can have a significant
effect on financial performance. NewLight implemented a number of key initiatives:
As part of the performance reviews, NewLight Healthcare also implemented Cost Controls.
By analyzing departmental spending trends using an internal database, NewLight
Healthcare was able to work with internal departments to update performance metrics
and spending policies, which reduced costs through pricing as well as efficiency.
By working collaboratively, NewLight Healthcare was able to gain the buy-in, support, and
commitment that helped generate the positive impact and growth to patient volumes.
Revenue Cycle Improvements
In addition to new services and enhanced productivity, managing cash flow by improving
billing and collections can have an immediate and significant impact. NewLight
recommended that Rehoboth McKinley Christian outsource the revenue cycle functions to
a third party company. The outsource billing company produced the following results:
The net result was a 17% increase in collections, which had a direct and immediate impact
on profitability.
Contract Changes: Renegotiated managed care contracts.
New Service Offerings: Through demographic research, identified and
prioritized key physician specialty needs to improve market capture.
Performance Reviews: Implemented productivity system and discipline to
match staffing to volumes, reducing FTE’s and over time, improving customer
service.
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reduced collection cost
improved collection performance
updated charge description master
improved revenue cycle processes to reduce bad debt
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4. Rehoboth McKinley
Christian Health Care Services
Gallup, New Mexico
Case Example © 2015 NewLight Healthcare. Page 3
Financial Results
The financial results of NewLight Healthcare’s efforts were realized within a year’s time.
From 2014 to 2015, Rehoboth McKinley Christian Health Care Services’ had a dramatic
improvement in both topside and bottom line performance:
The successful turnaround in net income allowed Rehoboth McKinley Christian to meet
the terms of bond covenants and regain compliance. With external funding secured and
positive net income, the long-term future of Rehoboth McKinley Christian remains bright.
Conclusion
Rehoboth McKinley Christian Health Care Services is a success story and demonstrates the
importance of focusing on growth. Cost cutting can help improve cash flow in the short-
term but cannot be sustained.
In 2014, Rehoboth McKinley Christian Health Care Services had cut as deeply as they could
and was on the verge of failing. With a focus on growth, NewLight Healthcare transformed
financial performance by focusing on both the topside and bottom line levers of success.
Net Revenue: +38%
FY15 Net Income: +$3MM
Net Income Turn Around: +$7MM
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5. Rehoboth McKinley
Christian Health Care Services
Gallup, New Mexico
Case Example © 2015 NewLight Healthcare. Page 4
About
NewLight Healthcare is a hospital management and consulting company. Our professional
team has extensive experience and is inspired to ensure the long-term success of your
hospital.
NewLight is passionate about providing the necessary tools and services for your
healthcare organization to flourish. We will work with your Board of Directors to select a
set of Key Performance Metrics and create a plan for reaching the metrics. The plan and
schedule will be monitored on a monthly basis. We are determined to get healthcare
organizations into a healthy, self-sustainable state, and with our resources we are
confident we can achieve this.
NewLight Healthcare was founded to be of service to communities throughout the World.
We operate from the highest level of integrity and make decisions from our hearts.

6. Download the Turnaround Through Growth
Case Example and others at
newlighthealthcare.com/casestudies