California: Clinic Reduces Amount of Money It's Seeking
March 18, 2011
A new analysis of Lyon-Martin Health Services' financial health shows the clinic needs $200,000 by the end of March to stay open, officials said this week. In late January, the board of directors warned of LMHS' impending closure. In response, San Francisco-based LMHS, which serves female and transgender patients, raised more than $300,000 through community fundraisers and appeals.
An initial external analysis by HFS Consultants led to an earlier call for an additional $500,000 by March 31. TCA Partners assisted the clinic in the more recent analysis showing only $200,000 is needed by month's end. The lower sum could ensure continued operations for "maybe another six to eight months," said Eric Fimbres, LMHS's interim executive director.
TCA's analysis, based on two-year cash-flow, shows that LMHS needs $500,000 through December, Fimbres said. Operations through year's end require about $1.3 million, and payments on debt push that up to about $1.5 million. LMHS has about $100,000 in the bank, he said. Debt of over $1 million would be retired over the next five years.
Fimbres presented the board with a new business plan on March 12. With the additional work the board requested, the plan could be finalized in less than a month, he estimated.
"We need to act fast," said Fimbres. "We really need to get this going as quickly as possible."
If LMHS cannot secure the $200,000 by March 31, the board will assess "actual cash" and "credible pledges" to determine whether to implement closure plans, Fimbres said.
Brought in to turn LMHS around, Fimbres said the clinic needs about $250,000 in additional funding from the public, $100,000 to $150,000 from private foundations, and $150,000 from the city. Among the cuts made since the external assessment is funding for Fimbres' position.
Bay Area Reporter (San Francisco)
03.17.2011; Seth Hemmelgarn
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