CFOs dove right into the tough conversations about the impact of accountability and care strategy at the HealthLeaders CFO Exchange.
In a time marked by rapid change and financial uncertainty, CFOs are gathered in Virginia at the HealthLeaders CFO Exchange to dissect and address the multifaceted challenges keeping them up at night.
A major theme that emerged during the discussions was the impact of accountability on hospital finances, organizational culture, and structure.
How CFOs are Navigating the Complexities of Accountability
CFOs voiced concerns over the complexities involved in aligning health system operations with systemwide financial accountability. One of the key challenges they identified is determining who is responsible for outcomes within an organization—whether it's managers or leaders. This lack of clarity can complicate decision-making and hinder the efficient allocation of resources.
Danielle Willis, CFO at LCMC Lakeview Hospital in Louisiana, highlighted a crucial perspective: “It’s less about metrics, more about setting expectations.” Her comment underscores the need for a shift away from rigid numerical targets toward a broader understanding of roles and responsibilities.
Moreover, CFOs stressed that mergers and acquisitions add another layer of complexity to accountability. These transactions can significantly affect job roles and necessitate a reevaluation of who is accountable for what within a newly merged organization.
The Role of Culture and Relationships
Beyond accountability, the discussions delved into the importance of organizational culture and the structure necessary to support financial goals.
CFOs emphasized that fostering strong relationships among leaders, vendors, payers, and the entire organization is essential for achieving successful outcomes, especially when adopting new technologies such as AI and automation.
The need for what some referred to as "role reversal" was also a topic of conversation. CFOs suggested that executive teams should strive to understand the day-to-day work at the ground level, which is crucial for comprehending how automation and other technological advancements can be effectively integrated.
Championing Change and Ensuring Alignment
Another significant point raised was the importance of identifying who is championing changes within the organization.
CFOs questioned whether CEOs and COOs are leading these shifts and whether they are promoting new ways of thinking and acting within their teams. Without strong leadership driving these changes, progress can stall, leaving health systems struggling to take the next step forward.
CFOs agreed that alignment across all facets of a health system is critical for moving forward. This alignment needs to encompass not just internal operations but also the overall strategy for patient care, from acute to ambulatory settings.
Acute Versus Ambulatory Care: A Strategic Discussion
A significant part of the discussion also focused on care strategy, particularly the differences between acute and ambulatory care.
CFOs noted that while these two sectors of care need to align, they should not simply mirror each other. “You want to own the patient journey, from acute to ambulatory,” one CFO remarked, emphasizing the importance of a seamless transition across care settings.
Kyle Wilcox, VP of Finance for MercyOne Medical Group, added, “The playbooks don’t overlap. They have to complement each other.” This highlights the necessity of crafting strategies that acknowledge the unique needs and operations of both acute and ambulatory care, while ensuring they work together to provide comprehensive patient care.
Simplicity in Strategy
As the discussions concluded, CFOs shared a final piece of advice: don’t overcomplicate strategies. In the face of complex challenges, it can be tempting to get bogged down in the minutiae. However, maintaining simplicity and focus is crucial for effective decision-making and implementation.
The HealthLeaders CFO Exchange underscored the importance of accountability, alignment, and organizational structure in overcoming the financial challenges facing healthcare. With a commitment to innovative strategies and fostering collaboration both within and outside of the health system, CFOs are well-positioned to navigate the obstacles ahead and continue advancing toward delivering exceptional patient care within an efficient, effective organizational framework.
The HealthLeaders Exchange is an exclusive, executive community for sharing ideas, solutions, and insights.
Please join the community at our LinkedIn page. To inquire about attending a HealthLeaders Exchange event and becoming a member, email us at exchange@healthleadersmedia.com.
Marie DeFreitas is the CFO editor for HealthLeaders.
KEY TAKEAWAYS
As the CFO role grows it must factor in the different, unique challenges across the organization such as financial accountability across all departments.
Financial accountability is key, not just for CFOs, but the whole organization. How does accountability feed into outcomes and organizational culture?
Acute and ambulatory care strategy often do not align and this will require significant change in order for CFOs to ensure a smooth patient experience