Social Services Organization Turns $5M Cash Loss Into a $3M Surplus in Less Than 6 Months
Lutheran Social Services of Illinois (LSSI) is one of the largest social services organizations in the state of Illinois. Due to the state’s inability to pass a budget to pay for its contracted services, LSSI was incurring cash losses of $5MM per year.
LSSI turned to Harney Partners as Restructuring Advisor. Our team developed and executed a plan with LSSI that included:
Closed certain operations that were not receiving payment from the state
Transitioned 800 employees to new service providers to maintain continuity of care.
Identified and eliminated unprofitable programs
Right-sized headcount, curbed excess spending; and sold and refinanced certain facilities.
Diversified revenue streams to reduce the reliance on the State, and the $5MM cash loss was turned into a $3MM cash surplus, for an $8MM swing – in less than 6 months.
Services & Roles
Turnaround and Restructuring
Out of Court Restructuring Advisor
*Some engagements may have been performed by team prior to joining Harney Partners.