There is rapid consolidation in the healthcare industry today, and that could be bad news for CFOs of the organizations that are being acquired.
When a merger or acquisition takes place, the CFO at the acquired company is typically going to be looking for a new job since they are "unlikely to be the top dog in the finance department when the dust settles," according to The Wall Street Journal.
Here are four things for healthcare CFOs to know about finance executives' post-merger options and the surplus of CFOs.
1. The shortage of CFO jobs isn't specific to the healthcare industry. As of June 5, there were only 19 open CFO spots at the 1,000 largest U.S. public and private companies, according to the report.
2. Only five CFOs at acquired companies have been named CFO at the new corporate parent since 2011, according to The Wall Street Journal, which cited information from Korn/Ferry International.
3. The outlook for CFOs at acquired companies isn't completely negative, however, as CFOs typically have more options than CEOs and COOs when they lose their jobs. That is because finance skills are transferrable across industries, David Larcker, a professor of accounting at Stanford Graduate School of Business, told The Wall Street Journal.
4. After a merger or acquisition, there are several different paths CFOs who are out of work can take. Some look to join a new company: Since 2011, about one-third of CFOs have joined another company within 90 days of a deal closing, according to the report. Another third have gone into retirement or haven't found a new position. Approximately 28 percent have taken on a divisional role at the post-merger company.
More articles on healthcare finance:
50 things to know about healthcare costs
UPMC Health Plan joint venture prices IPO
White House: Expanding Medicaid could save $4.5B and 5,220 lives in 2016