Columbus-based OhioHealth is an 18-hospital system with locations in urban, suburban and rural settings. Recently, the health system reported operating income of $303.7 million on revenue of $5.7 billion for the fiscal year ending June 30.
Becker's spoke with CFO Michael Browning about the system and its plans for the future. This is one of a series of Q&As with healthcare system CFOs in the run-up to the Becker's CEO/CFO roundtable event in Chicago Nov. 13-16.
Question: What are the top three strategic financial priorities for your health system in the next fiscal year? How do these align with the organization's overall mission and goals?
Michael Browning: Retention is our No. 1 priority. In terms of capital investments, we have to identify the right ones, and then we have to get the waste out of the system. We always go back to our balanced scorecard and our four focus points of finance, culture, quality and service. All of these go together, and we often find that finance lags the others. We aim to provide a customer experience so that we create a customer for life — we have to make sure we are meeting the needs of our customers. It's always the patient first.
Q: What are the biggest financial challenges facing your health system today? On the other hand, what are the most promising financial opportunities?
MB: Technology and regulatory compliance [are the biggest challenges]. Disruptors in the market and the challenge of competitors are also things we have to adjust our strategy to. But we see opportunities for growth and are looking at 10% a year for such growth, whether that comes through acquisition or organically. We have a financial sustainability team which really helps us with expense management and revenue growth. It's not just about growth, it's about the right growth.
Q: How is your system leveraging technology and digital health platforms to enhance patient care, improve operational efficiency and generate revenue?
MB: We are using AI in our revenue cycle operations, but AI for us is an evolving thing. We are concentrating on IT projects, one of which is at our new hospital in Pickerington where we will have an 80-inch monitor in every patient room that will identify who the specialty providers are every time they enter the room. We aim to move this throughout the health system and we think it will be a big hit. We think this will close care gaps and get issues identified quicker.
Q: What partnerships, joint ventures, mergers or acquisitions is your system exploring to strengthen its financial position or expand service offerings?
MB: I've already had a couple of [M&A-related] meetings this week, and today's Tuesday. We will always look at transactions that are value-added if they are the right opportunity whether that be another hospital or merger with another system. What I would say about merger and acquisition is we are just getting started.
Q: Given the unpredictability of events like pandemics, what are you doing to ensure financial resilience and sustainability in the face of unforeseen challenges?
MB: We take the resiliency of our team members and associates to heart. I'd say we are discussing the unknowns every day. We are trying to fix the problems that may be down the road, particularly when it comes to our workforce. We are looking at doing things today that will benefit us in three to five years.