Top Challenges Of CFOs While transitioning to value based care In 2013 the healthcare costs in United States went up to 17.7% of GDP, the most than other country Projections show continued growth averaging 4.9% a year in 2014-18, increasing to 17.9 of GDP by 2018
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Top Challenges Of
CFOsWhile transitioning to value based care
In 2013 the healthcare costs in United States went up to 17.7% of GDP, the most than other country Projections show continued growth averaging 4.9% a year in 2014-18, increasing to 17.9 of GDP by 2018
When it comes to experience
“You need to understand the issues, test your theories, and subtly
verify your assumptions along the way,” says Tom Gibney, CFO of
St. Luke’s Cornwall Hospital of Newburgh, New York, when asked about
how experience plays a role in decision making. “The buck stops with you,”
he says. “The board is looking to you for answers”, he quoted.
Reimbursement declines, physicians shortage, healthcare reforms and other
factors have forced CFO’s to use their experience in answering how to
recoup the losses and improve the organization’s cash flow.
Medicare (fee-for-service Medicare, Medicare Supplement and Medicare Advantage) which constitutes 30% of patient volume, are critical for offsetting fixed costs but are not set-up to make margins
Medicaid constitutes another 15% of volume-60%-70% reimbursement of Medicare but still higher losses. Uninsured patient volume constitutes about five percent and represent large “losses” to the hospital For this hospital the average gross margin is approximately four percent.
The state of flux in reimbursement and required changes in healthcare delivery make planning capital expenditures a challenge.
Many hospitals and healthcare systems spend significant time analyzing market projections and feasibility studies before committing to capital programs.
Navigating through this chaotic environment requires the right financial partner, with proven expertise, flexibility and experience.
What is stopping the organization from tacking challenges?