Hospital CIMA Monterrey

Hospital CIMA Monterrey was located in the Municipality of San Pedro Garza Garcia, State of Nuevo Leon, Mexico, with a population of 5.1 million.  In 2004 it was acquired, rather than developed by IHC, as a turn-around project; although well designed, the hospital was not well managed and was underperforming at the time of its acquisition. The hospital was a 70-bed hospital (50 medical and surgical beds; 20 NICU, pediatric and adult intensive care beds) and provided a full range of diagnostic, emergency medical and surgical services. It had a total of three operating rooms, two delivery rooms and a combined labor-delivery-recovery room. Ancillary departments provided diagnostic and treatment support, with state-of-the-art imaging technology (CT, ultrasound and nuclear medicine). A new MRI and cardiac service line were added to this facility. Some of the more significant initiatives of this hospital were a Primary Care Clinic Program, the creation and implementation of the medical staff bylaws and the Ambulatory Day Clinics.

A medical office building was adjacent to the hospital, and the campus was located in a financial district of the Metropolitan Area of Monterrey, one of the most prominent, upscale areas in Mexico.

The goal of CIMA, post-acquisition, was to upgrade the image and service capabilities of this Hospital and build a major multi-specialty tertiary care hospital. IHC planned to construct two additional floors on the hospital, however macro-economic and political upheaval in Mexico related to drug wars during that period precluded procurement of the necessary expansion capital resources.

As a turn-around project, IHC restructured staffing and introduced CIMA operational methods. The hospital went from a negative EBITDA performance to 25 % operating margins in 20 months and attained Joint Commission International accreditation within five years of acquisition, achieving revenue of US $25MM, 14,200 adjusted patient days and 3,500 annual surgeries. Before its divestiture, CIMA Monterey was a prime example of the impact of CIMA operational philosophies and methods in taking an underperforming operation to high performance business and clinical characteristics.