IRON Recovery & Wellness Center, Inc.

IRON Recovery Wellness & Wellness Center, Inc. has been providing valuable substance use disorder and behavioral health treatment services since 1987. IRON has a multi-disciplined approach to helping clients achieve freedom from substance abuse and behavioral health disorders. IRON offers coocurring treatment services including psychiatric evaluations, medication management, and trauma informed care in order to assist clients who have parallelled behavioral health disorders and substance abuse disorders.

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Year Founded

1987

Inperium Partner Since

2017

Location

132/144 Perry Street
Trenton, NJ 08618
United States

Contact

609-394-8988

Why an Inperium partnership

Debt

The organization contacted Inperium in March of 2017. Inperium quickly learned that the New Jersey Department of Mental Health and Addiction Services (DMHAS) suspended payments due to the organization’s failure to repay over $1M in contract advances.

Investigations

The organization had failed to submit reports on expenditures (ROE) for years, and DMHAS had engaged an independent third party to review operations and financial management. This investigation revealed egregious program and financial mismanagement.

Potential Closure

The organization had failed to remit federal payroll taxes for several quarters to manage cash flow. Their attempts hadn’t been enough, and the organization was days from closing its doors and leaving over 700 clients without access to services.

How Inperium helped

Steady Leadership

Two Inperium representatives joined the organization’s board and helped negotiate with the DMHAS, IRS, and other creditors. Inperium also provided an interim program director to address programmatic and licensing issues.

Right-Sizing Finances

Inperium appointed an interim CFO and financial resources to clean up the books and provide ROE to DMHAS. Inperium also negotiated a settlement agreement with DMHAS that dramatically reduced the overall liability for past repayments.

Organizational Stability

Inperium worked closely with the DMHAS CFO to ensure continued advances to fund payroll and employee benefits to continue providing services.

Process and steps

The organization is under investigation by the DMHAS after failure to repay over $1M in contract advances. The investigation has found serious program and financial mismanagement.

Two Inperium representatives join the organization’s board to assist in negotiations with the DMHAS, IRS, and other creditors.

Inperium appointed an interim CFO and financial resources to clean up the books and get the organization operational again.

With payroll and employee benefits funded consistently, the organization can keep its doors open and continue providing services.

Results

After stabilizing the organization, Inperium repaid $330K of delinquent payroll tax to the IRS on behalf of the organization and provided the funds for and oversaw quarterly payments to settle the DMHAS debt. Inperium’s interim management team also negotiated a mortgage settlement with the bank, yielding a 33% discount on monthly payments. Inperium also hired a new executive director who has continued to ensure programmatic integrity and recently oversaw a successful reaccreditation process. As of the fiscal year 2020, IRON has been generating an operational surplus.

As a stand-alone agency, we struggled with recruiting, onboarding, managing finances & having human resources support. After IRON affiliated with Inperium, there has been several positive changes for our organization. Inperium has been a supporter of the agency’s goals & vision & has been able to provide us with the necessary resources to focus on the day-to-day operations. This support & additional resources allows us to provide the best possible care to our clients & be successful with agency audits. One thing I love is working together as a team; having shared resources & ideas are essential for IRON’s continued success.

-Anonymous Current Employee for IRON Wellness & Behavioral Health