From changing reimbursement levels to the evolving CFO role, hospital and health system financial leaders are facing a number of challenges.
Regarding the numerous issues in front of CFOs, financial leaders from health systems across the nation shared the following pieces of advice with Becker's Hospital Review over the past month.
1. Paul Belter, CFO of Arlington Heights, Ill.-based Alexian Brothers Health System, shared his thoughts on the greatest challenges facing hospital and health system CFOs today. "Payers and employers are rightly interested in lowering their costs, but they're focusing on reducing utilization of services, directing patients to lower-cost providers and shifting more the cost burden to patients," he said. To overcome this challenge, "requires hospitals to think differently and creatively as to how to serve more members of their communities by being price competitive, consumer-friendly and essentially the provider of choice for not only patients, but also physicians," said Mr. Belter.
2. Mr. Belter said an issue hospitals and systems will have to overcome moving forward will be to "exist and thrive in the traditional fee-for-service environment, while at the same time preparing for the future model, which ultimately will entail the assumption of financial risk for population health."
3. Brentwood, Tenn.-based RegionalCare Hospital Partners CFO Mike Browder shared advice for hospitals and systems preparing for a joint venture. "Don't assume any of the other parties understand all of the provisions of the legal documents or important specific aspects of the deal," he said. "Whether it's definitions such as 'distributable cash,' implied new board requirements or deal closing mechanics, partner CFOs must be in lock step to ensure initial and ongoing success of the joint venture."
4. David Smith, CFO of Hollywood, Fla.-based Memorial Healthcare System, shared his thoughts on the future of the healthcare industry. "The biggest opportunity that we have is to change the way we define success in healthcare," he said. "For years, success has been defined as quality outcomes and solid financial results for the patient treated at each facility. However, as we migrate toward population health, our objectives are changing to keep patients healthy and out of the hospital entirely."
5. Mr. Smith also shared his view on changes that need to be made in healthcare. "We need to create a culture that recognizes the value of treating patients in lower cost settings, financial models that reward providers who achieve that and a leadership mentality which acknowledges that the traditional ways of measuring success must change."
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