Preview: At CFO Exchange, Cost Reduction Tops Agenda
Spending priorities planned for the 2014 budget led off with medical equipment (such as advanced imaging and robotics) at 30% of capital budgets, on average. Next: brick-and-mortar expansion for outpatient facilities (21%), IT/EMR expansion (19%), and bricks and mortar expansion for inpatient facilities (18%).
HealthLeaders Media's third annual CFO Exchange brings together nearly 40 healthcare finance executives from across the country
Photo: Dana Thomas
In working with payers, three-fifth of the CFOs said they expect a "mixed" relationship in the coming years, described as "we have contracts to reduce costs and improve patient care, but we still struggle to get paid." Smaller percentages described symbiotic relationships and negative dealings.
Regarding value-based contracts with payers, the largest share of CFOs said they had had initial conversations with payers about ACOs, but agreements had not been set. Smaller but sizeable numbers said their organizations had invested significantly in active commercial contracts that cover more than 5,000 lives, or that they are participating in limited pilots with less than 5,000 lives.
Despite the challenging environment—or perhaps in response to it—nearly three-quarters of the financial leaders gathered for the CFO Exchange describe their organizational growth strategy over the next three years as "selective." Another 28% say the strategy will be "aggressive." Only one CFO has outlined a cautious strategy.
We asked CFO Exchange attendees to describe their organizations' leadership strategy in a single word. Two words jumped out: innovation and aggressive.
We will be reporting on these discussions in the coming days and weeks, and using the CFOs' insights to deepen HealthLeaders' coverage of the business of healthcare.
Edward Prewitt is the Editorial Director of HealthLeaders Media.
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