Case study: a healthcare organization

A large healthcare organization had acquired many hospitals, each with its own investment program. It meant that each hospital had its own defined benefit plan, own foundation, own corporate assets and funded depreciation. The healthcare organization wanted to bring all of the hospitals together under one streamlined and efficient investment platform.

It was quite a challenge and involved a yearlong process. We had raw data to analyze, organizational politics to respect and changing objectives to address. We had to coordinate the efforts of many people, both inside and outside the healthcare organization. There were a multitude of funds, allocations and objectives to review. There were more than 75 money managers that had to be pared down to a workable solution. Plus, there were multiple custodians to review and negotiate down to a more cost effective and competent single provider.

We assigned multiple consultants to the account. Working together, we created a matrix to give us a bird’s eye view of the plans, funding status, actuarial assumptions, asset allocations and investment managers. With much attention to detail, our team consolidated everything – the objectives, allocation, managers and so on down the line. We conducted due diligence on all of the managers being used, arrived at our final list of candidates and renegotiated the fund fees. We recommended a custodian and renegotiated the custodial arrangement.

The outcome was a consolidated investment program for their corporate assets and retirement assets that provided significant cost efficiencies. Due to their increased size and our relationship with outside investment professionals, our client was able to have access to investment opportunities that were previously unavailable to them. We were also able to orchestrate cost efficiencies such as lower fees from their custodian and fund managers.

While the size and scope of this project makes it an atypical case, we share this story because it demonstrates our full range of capabilities and shows that we are fully prepared to help clients of any size with the same level of insight, expertise and dedication.

Individual results will vary.