Company: InSight Health Services Corp.
Company Description: InSight Health Services Corp. is the nation’s largest integrated provider of diagnostic imaging services, including CTs and MRIs, with 173 locations (73 fixed/100 mobile) in 30 states. InSight employs more than 1,600 and contracts with 1,600+ hospitals/managed care customers. InSight is well positioned as a leader in its sector and continues to strive to emerge the national provider.
Nomination Category: Company, Office & Product Awards Categories
Nomination Sub Category: Best Business Turnaround

Nomination Title: InSight Health Services Corp.

1. Tell the story of what this nominated company has achieved in 2002 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance and industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

   Three years ago, InSight Health Services Corp. was suffering. The company didn’t have the infrastructure to support its rapid growth and earnings began to falter. Recognizing the challenges ahead, InSight’s Board hired Steven T. Plochocki to restructure the business. They recognized Plochocki’s experiences in reorganizing healthcare companies and applying operational controls, which would quickly enhance bottom-line performance.

   Plochocki brought to InSight a plan that would change the face of the company and transform its industry position. The plan would improve margins, control expenses, leverage purchasing programs, apply cost savings policies and offer employees performance-based incentives.

   InSight has undergone a dramatic turnaround since executing the plan. Revenues more than doubled to $211.5 million while earnings increased 16-fold from $1 million to $16.5 million. InSight recently emerged as the largest integrated provider of diagnostic imaging services nationwide.

   The operational plan involved several key elements:

   *Monthly operating, sales and billing reviews

   Corporate department heads conduct reviews with line management monthly using internal comparability and rankings as benchmarks to rate progress, raising levels of accountability.

   *Logistics Model

   Management sets standards for performance in all operating categories. This continually establishes best practices and operating tactics for improvement within the field.

   *Performance-based policies and incentives

   This system of strict accountability bestows high-end incentives for stellar performance. Employees corporate-wide are rewarded based on their contributions to growing the company.

   *Purchasing Power

   InSight used its scope and size as a leveraging factor to re-negotiate vendor contracts and re-engineer processes to improve bottom-line performance.

   *Cost Savings Component

   This program component involves a disciplined system for cost management, tighter controls and expense accountability.

   This integrated approach to enhancing performance allowed InSight to consistently improve financial results. Plochocki’s plan enabled InSight’s rapid turnaround and sustainability of its performance. Adhering to these principles enables the company’s growth to accelerate.

   A culmination of these efforts led to a transaction allowing the company’s largest shareholders, GE Capital and The Carlyle Group, to realize a 2.5X ROI. In 2000, InSight’s shares were trading at $4 5/8; in October 2001, the company was acquired for $18 per share by private equity firms J.W. Childs Associates, LP and The Halifax Group, LLC. This once-public company was acquired at nearly six times EBITDA, after creating more than $140 million in value and reporting eight consecutive quarters of improved financial performance.

   In 2002, InSight:

   ·Raised $225 million in subordinated debt. ·Became the first B-rated company to secure a bond deal following September 11. ·Created an acquisition strategy that uses proceeds from its bond offering to further expand. ·Continues toward its goal of achieving $500 million in revenue and doubling its size over the next three years.

   InSight has been recognized by organizations that evaluate corporate performance. During the past two years, The California Council for Excellence bestowed InSight with three prestigious awards for the company’s outstanding turnaround performance and implementation of its information systems and compliance programs. In 2001, InSight earned a silver award from the Adaptive Business Leaders Organization.

2. List hyperlinks to any online news stories, press releases, or other documents that support the claims made in the section above. To include a URL you must begin and end the URL with a square-bracket and include http:// Example: [http://www.yourdomain.com]

   Supporting materials for this nomination were submitted offline.

3. Provide a brief (up to 100 words) biography about the leader of this nominated company:

   Steven T. Plochocki, president and chief executive officer and member of the board of directors of InSight, has focused his career on rebuilding troubled healthcare companies.

   The 27-year healthcare industry veteran and entrepreneur, known as an architect of turnarounds, received the 2002 Orange County/Inland Empire Ernst & Young Entrepreneur Of The Yearâ award in the health services category and was finalist in the national competition.

   Plochocki’s diversified healthcare experience ranges from sales and marketing expertise and operational acumen to acquisition integration.

   Plochocki’s restructuring plan has had significant impact on Insight and brought it to the leadership position it holds today in integrated diagnostic imaging services.