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The Exec: Ochsner Health's New CFO Talks Investment Portfolios and Ensuring Financial Stability in 2024

Analysis  |  By Amanda Norris  
   June 29, 2023

In an exclusive interview with HealthLeaders, Ochsner Health's new CFO discusses his plans for the organization's financial future.

Editor’s note: This article appears in the July-September 2023 edition of HealthLeaders magazine.

Ochsner Health recently named Jim Molloy, a former Citigroup Global Market executive, as the organization's next executive vice president, CFO, and treasurer.

Molloy will oversee the organization's accounting, financial planning and analysis, reimbursement, and revenue cycle functions, as well as managed care contracting and treasury starting in July.

While his current role is still as the managing director and head of municipal banking at Citi, Molloy is not new to the innerworkings of Ochsner Health’s finances. He has been a key financial advisor to Ochsner for several years and has spent more than a decade overseeing banking for all municipal-related activity, including public finance, healthcare, higher education, and public-private partnerships.

When Molloy officially joins Ochsner in July, he will work side-by-side with Ochsner’s current CFO, Scott Posecai, who will retire as CFO in December.

Molloy recently chatted with HealthLeaders about his new role and how he plans to ensure the financial success of the organization once Posecai departs.

HealthLeaders: Ochsner says you will play a pivotal role in the continued development and execution of strategy as the health system builds on its clinical excellence and innovation in healthcare delivery. How does your background in banking make you a good fit for this new role and Ochsner in particular?

Jim Molloy: I’ve worked on all types of financings and have led numerous strategic projects over the years. This background has afforded me a strong understanding of healthcare and the financial markets while allowing me to create strong relationships with investors and other stakeholders. It has also exposed me to the strategic aspects of the business.

I have been fortunate to work with Ochsner on projects that fueled the organization’s strategic growth, including the original merger of the clinic and the foundation. I have developed a strong connection to the organization, and I understand how important Ochsner is to the overall health and well-being of the communities it serves. I have also been fortunate enough to get to know much of the executive and board leadership.

I have a deep respect for the culture and depth of talent at Ochsner, and I’m committed to the organization’s values and mission to serve, heal, lead, educate and innovate.

Photo courtesy of Ochsner Health.

HealthLeaders: CFOs need to help their organizations grow while keeping expenses low. What sort of processes do you plan to put in place to make sure this happens?

Molloy: My engineering background and my consulting work helped influence the process-oriented thinking I adopt and live by today. It is important to develop a culture in which leaders seek continuous improvement, while also measuring the appropriate things and benchmarking yourself in key areas against best-in-class organizations. While it is important to always keep a mindset toward reducing expenses, the true key to success for any organization is disciplined growth.

HealthLeaders: With your history in banking, how will you use your expertise to think outside of the box when it comes to Ochsner’s investment portfolio?

Molloy: When considering investments, it’s critical to have strong discipline and balance appropriate risk-taking.

The organization has done a great job of this over the years, but over time I will utilize my industry connections to identify new ideas and opportunities to improve.

HealthLeaders: How will you help ensure financial stability for Ochsner in 2024 and beyond?

Molloy: I will look to develop strong relationships across Ochsner’s management, clinical leadership, and finance teams to ensure we can support our operational and clinical priorities, which in turn will support our strategic growth priorities.

I plan to examine our portfolio of businesses and assets to ensure we are investing in the best areas to fulfill our mission. Resources are limited, so it is important to determine what competencies are core to the organization and then find good partners for important non-core competencies, so we properly allocate resources.

Most critically, we must keep our focus on better serving our patients and improving the lives and the health of our communities. We need to find new ways to make healthcare more accessible to the communities we serve, and work to ease the pressures on our workforce. Improving in those arenas each year will be critical to our success.

Amanda Norris is the Director of Content for HealthLeaders.


KEY TAKEAWAYS

Jim Molloy, a former Citigroup Global Market executive, was named as Ochsner Health's next executive vice president, CFO, and treasurer.

When Molloy officially joins Ochsner in July, he will work side-by-side with Ochsner’s current CFO, who will retire in December.

Molloy recently chatted with HealthLeaders about his new role and how he plans to ensure the financial success of the organization.


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