MedQuist was the world’s largest medical transcription products and services provider. A company press release which discussed the findings of an independent review of the company’s billing practices led to significant destabilization of customer relationships, multiple class action lawsuits, federal government investigations by the SEC, DOJ and DOL and a significant delay in obtaining audited financial statements and meeting SEC reporting obligations. Numerous operating issues existed due to the incomplete integration of fifty acquired companies. Finally, the majority shareholder wished to exit its investment. We assumed the CEO role and provided significant analytical support to resolve the billing-related crisis, bring the company current in its SEC reporting, complete the integration of the acquired businesses and lead the sale process.
An accommodation program for customers was designed, developed and implemented to resolve potential billing-related claims outside of the class action litigation. An analysis with supporting documentation was developed to facilitate signoff by auditors of a modest restatement of historically reported revenues. The number of active transcription platforms was reduced from twelve to one, the number of supported billing units of measure was significantly reduced and billing transparency was dramatically enhanced. An operational restructuring was completed which resulted in improved margins and the delivery of consistent, high quality customer service.
Credibility with the customer base was restored through the accommodation process. All class action lawsuits and government investigations were resolved on favorable terms. Five years of audited financial statements were filed in less than one year with the final year reflecting no material SOX weaknesses. A sale of the majority shareholder’s stake was successfully completed.