OrNda Healthcorp
When Mr. Littlejohn and his partners recapitalized Republic Health, later renamed OrNda Healthcorp, the hospital management company and its 11 hospitals were emerging from bankruptcy and were still significantly undercapitalized. It was being run by a crisis manager, lacked strategic focus and was performing below industry benchmarks. Mr. Littlejohn and his partners were able to attract a new high-caliber management team who moved quickly to streamline administrative and hospital functions, improve operating margins and implement a sophisticated cash management system. In addition, they sold off under-performing assets and implemented an aggressive acquisition program. When the company was sold five and a half years later, revenues had quadrupled to over $2 billion and EBITDA as a percent of revenues had grown significantly from 11% to 16%. OrNda Health-care was merged into Tenet Healthcare in 1997 to form the second largest hospital management company in the country.