5 CFO Takes on Today's Healthcare Challenges

What are CFOs saying about these specific challenges?

CFOs today are facing many challenges. Here’s how some of the healthcare industry’s top financial executives are responding.

Payers

"It's gotten worse, there is no alignment," Julie Soekoro, CFO of Vitruvian Health Care System, said at the HealthLeaders CFO Exchange. "We are not growing in the same direction when they have margins as a goal."

When it comes to payers, CFOs are livid. But they're also exhausted and say they don't feel like there are many options to retaliate against payer tactics. During the HealthLeaders CFO Exchange, executives lamented that they don't know how to collaborate with payers or advocate against the stances that payers are taking. Many said they feel that payers typically do not have a sense of what is happening in the market and don't forecast very well, which is why payers are seeing less profits this year.

Generally, CFOs said they:

• Are feeling a little downtrodden by payer negotiation tactics and contracts.
• Want to educate community officials and state governments on payer challenges.
• Need better cost-cutting strategies just to stay afloat.

Tariffs

Tariffs are another massive worry for CFOs, especially given the fast-paced back-and-forth of the current administration on implementing them. Brad Hipp, CFO and vice president of Tucson Medical Center (TMC), said his organization is working with its GPO to take steps to ensure access to supplies at the highest risk of disruption and financial impact. This includes setting up a "cross-functional tariff command center to track developments, coordinate responses, and provide real-time insights."

 "Although disruptions seem imminent, it will be the facilities that have the infrastructure to act swiftly and thoughtfully on how to drive organizational cost down to offset any tariff impacts that will weather the storm as we did in 2019,” Hipp said.

Technology

Brian Devine, CFO of Allegheny Health Network, spoke at the CFO Exchange about creating a long-term business plan for AI and new technologies.

“Utilizing AI and new tech for clinicians and other areas like RCM has to be accompanied by a strategic plan,” he said. “Don’t invest just to say you did it. How do we approach a business plan around these types of technologies?”

Medicaid Cuts

Many healthcare executives are concerned about potential Medicaid cuts.

Brett Tande, corporate executive vice president and CFO of Scripps Health, recently visited Washington to voice his concerns.

"Spent time on Capitol Hill with fellow health system CFOs advocating against proposed Medicaid cuts,” he said in a LinkedIn post. “These potential reductions would have a serious impact on access to care for millions and result in the closure of vital services across the country."

Teamwork and Collaboration

Laurie Beyer, CFO of Greater Baltimore Medical Center, shared when her team experienced a cyberattack and quickly had to come together to resolve it. Agility, Beyer knows, is an essential factor to building a capable team, and can make all the difference when times get tough.

"Make sure that you've got the right team, establish relationships with your peers, [and] be available and be present," she said. "It's important to establish relationships so that when you do have a crisis that you can come together and solve it quickly."