From collaboration to self-awareness, here’s what CFOs are doing to make their jobs easier.
Forging a path to success in today’s healthcare landscape is no easy task for CFOs. From collaborations big and small, to driving operational innovation, to staying receptive to the needs of staff and colleagues, CFOs are expected to juggle a lot.
Recent interviews with several financial leaders at health systems across the country offer an idea of the top challenges they’re facing, as well as the opportunities they see for improvement.
Check out this infographic for the best CFO advice from our stories.
Clinical Collaboration
The CFO’s role has evolved a lot over the past few years. The demands of the position are putting new emphasis on collaboration, particularly with others in the C-Suite. CFOs can no longer make decisions without thinking how they impact other departments, like clinical care, IT and revenue cycle management. .
Bradley Hipp, CFO and Vice President of TMC Health in Arizona, says he has learned a lot about collaboration over his career. Prior to joining TMC, Hipp served as chief financial officer for Banner University Medicine Tucson, and he has also held finance leadership positions with Loyola Medicine and WellPoint.
Collaborating with clinical teams is a huge component to a CFO’s role, he says. Thinking of physicians as partners, not employees, is vital; both physicians and nurses have the expertise and the scientific mindset to think through operational challenges.
Hipp’s advice: “You think that you're so important with what you're trying to do, but if you don't have that collaboration with those physicians then you're not going to be successful."
Steady Innovation
A forward-thinking mindset goes hand-in-hand with the CFO’s role. From forecasting, to investments, to service lines, to technology, CFOs often feel the pressure to be a couple steps ahead of the game.
But the long game is often filled with speed bumps and barriers, and CFOs must be patient in waiting for financial results, especially when it comes to big technology investments. Sergio Melgar, CFO of UMass Memorial Health, helped lead his team through a massive system overhaul to implement Epic’s EHR. He says CFOs may find themselves breaking through unexpected barriers in this time.
Melgar’s advice: “You'll need to sort of break through more, call it personal barriers, than necessarily the system barriers.”
Being a Good Communicator
Lastly, in order for CFOs to successfully work alongside their team, they need to prioritize interpersonal and leadership skills.
Kurt Barwis, CEO of Bristol Hospital, has a long career in healthcare and beyond that spans decades, including positions of senior vice president, chief operating officer, chief financial officer, and director of patient services resources. Barwis, a registered lobbyist in Connecticut, also serves on the Board of Governors of the American College of Healthcare Executives and is a fierce advocate for healthcare reform.
He says as communication strategies change within health systems over time, effectively communicating across domains can become more challenging, making self-awareness and interpersonal skills more crucial than ever.
Barwis’ advice: "The CFOs of the future really do have to have that strategic knowledge. They may be smart, but you can't put them at the top of your organization if they have no people skills, no interpersonal skills, and, most importantly, no self-awareness skills."
Data governance is a big task. Where does the CFO fit in?
I know what you’re thinking: “Data governance is not a CFO’s job.” You’re right. It’s likely not in the job description. However, as both healthcare and technology evolve, so do their strategies, whether operational, technological or governing. For CFOs to understand the full scope of how their organization uses, protects and even profits off of its data, they need to have a hand in data governance.
Jim Dregney, CFO of Sauk Prairie Healthcare, says that while his organization has a leader in charge of data analytics and management, there is room for improvement.
“Data governance is tough,” he says. “The simple volume of information that is available through all of the various sources of data is daunting. There certainly is a need for the CFO to have a role in data governance.”
“Much of the data comes from sources that the CFO has direct oversight of and reflects financial performance in addition to operational performance that impacts financial stability,” He adds.
Data management can get complicated and messy. Close to everyone in a health system will interact with data, but that doesn’t mean it is always a smooth or simple interaction.
“One complication is that there can be multiple data fields that seem to report the same information, but they are actually quite different,” Dregney explains. “For example, when looking at patient volumes for a particular period of time, it is important to know the source of the data. Is it coming from the patient scheduling module or the billing module? If you’re looking at productivity measures, you would likely be looking at the number of scheduled visits for the time period, whereas if you’re doing analysis on average charges per patient visit, you would likely be looking at the number of visits or procedures for which charges have been posted.”
How “the data is reported and used once it’s in the system” Dregney says, “is entirely dependent on how the data is captured and entered into the system.”
The data that is brought in and used affects close to everyone in the organization, so one individual, or a small team of individuals, can’t effectively assess how the organization’s data is captured, used, protected, and distributed. As healthcare progresses and faces new challenges and opportunities, data governance will require a more hands-on approach (with more hands), from different parts of the organization.
“To do this effectively, it requires more than just the CFO or a limited number of leaders,” Dregney says. “It requires engagement and participation by all staff along a patient’s entire care journey.”
CFOs must recognize their role in data governance and how it can affect operations and finances.
“Every piece of data can be an effective analytic tool to improve operations,” Dregney says. “If there are gaps in the collection process, it can result in significantly impaired decision-making processes that put performance at risk.”
Data Deals
As healthcare organizations recognize the value and power of healthcare data, they can leverage this data to create more strategic partnerships that provide long-term value rather than just short-term licensing fees. However, health systems considering a data transaction, whether in the short or long term, should take a few practical steps so that they are well positioned for a future transaction.
For health systems looking to use their de-identified data in transaction deals, developing a data governance strategy to determine which methods can and should be used to de-identify the data can help create a clearer path to how it can be used and its value maximized. Creating a collaborative task force to tackle data deals and governance can be a great starting point.
Cybersecurity
When it comes to protecting healthcare data, the strategies for doing so have drawn scrutiny over the last year since the Change healthcare cyberattack. Organizations are ensuring they stay up to date with the latest software and security practices to prevent a breach of their own.
Cybersecurity intersects with data governance in a big way, from regulatory compliance to risk management, to data life cycle management, to security access and training. With so much of the foundation of a health system tied to these two categories, CFOs need to be on board with data protection strategies and governance before it becomes a giant financial issue like a ransomware attack.
By recognizing the importance of data protection through robust cybersecurity and data management investments, CFOs can continually examine how these investments are or are not benefitting the organization. While cybersecurity may be traditionally thought of as the CTO’s job, CFOs can collaborate with CTOs to understand the full value of cybersecurity investments and what makes one data protection technology better than the other.
Health system layoffs are on the rise. This year so far a large number of hospitals and health systems have laid off workers due to financial and operational challenges. Check out this infographic to zoom in on the issue, and what CFOs can do about it.
From collaboration to self-awareness, here’s what CFOs should know.
Forging a path to success in today’s healthcare landscape is no easy task. From collaborations big and small, to driving operational innovation, to staying receptive to CFOs are expected to juggle a lot.
Check out this infographic for the best CFO advice from our stories.
What factors play into implementing value-based care models to help contain costs?
On this episode of HL Shorts we hear from James Dregney, CFO of Sauk Prairie Healthcare. Dregney dives into the opportunities and challenges that arise when implementing value-based care models, including robust care coordination and preventative care.
As the economy stiffens, CFOs will need to be more flexible with their strategies.
No time? Check out this infographic for a quicker breakdown of this story.
How are CFOs faring in today’s hectic economic landscape?
It’s business as usual for the moment, but soon the healthcare industry could be in for a wild ride. Tariffs, proposed cuts in Medicaid programs, and skyrocketing drug prices could all have a massive impact on healthcare operations and costs.
CFOs will need to be creative in some areas and examine where they can shift, pivot and get a hold on costs.
Tariffed Terrain
CFOs should examine how tariffs will affect their organization. Examining these three key areas can help determine where the most impactful adjustments can be made:
Supply chain
Cash flow
Currency risks
Supply Chain
CFOs need to determine how tariffs could affect their supply chains. Tons of goods produced within the U.S, are still a part of an interconnected global supply chain. They should look at not only their immediate suppliers, but their suppliers’ suppliers, to determine how costs will change for hospital supplies, ranging from medical devices to gowns, gloves and syringes.
CFO to do: Conduct rotating supply chain optimization reviews and try to renegotiate vendor contracts where applicable.
Cash Flow
In an uncertain economy, cash flow becomes even more crucial. CFOs should examine all opportunities and resources for obtaining cash. This may include keeping a dashboard of the health system’s most liquid and lowest-cost options for getting cash, as well as its most difficult and highest-cost cash flow options. This strategy can involve input from other members of the C-suite to get a thorough look at cash flow opportunities and adjustments.
CFO to do: Look for cash flow opportunities outside immediate recurring business.
Currency Risks
The U.S. dollar has been a stable currency for a long time, but the new onslaught of tariffs will likely change that, making it key for CFOs to understand their exposure to foreign currency exchange rates. Health systems may interact with foreign currency more than they think, as many healthcare supplies come from foreign supply chains. For example, in 2023 the U.S. imported more than $12 billion dollars worth of medical supplies from Mexico. CFOs will need to, again, look closely at their supply chains to uncover any exposure they might have to foreign currencies.
Ensure there is a system in place to track all the major currencies to which the organization is exposed, such as dollar-to-euro or dollar-to-peso. Once the risk is understood, CFOs can take applicable actions to safeguard their health systems.
CFO to do: Consider renegotiating vendor contracts to stabilize the impacts of currency exchange rates, and establishing forward contracts with banks to lock in particular rates for set periods of time.
Medicaid Cuts
With Medicaid cuts looming, many states know their healthcare expenditures are at risk. Medicaid represents $1 out of every $5 spent on healthcare in the U.S., and cutting these programs would affect both health systems and their patients. While the industry will have to keep an eye on this issue for now, CFOs can start to think about how they can mitigate the damage from potential cuts.
CFO to do: Examine Medicaid utilization rates in your state(s) and consider implementing low-cost programs to help patients find coverage.
CFOs can ensure they are advocating for their health systems by lobbying their state representatives and participating in advocacy programs. .
PBMs and Pharmaceuticals
Health systems that use pharmacy benefit managers (PBMs) need to keep an eye on the (currently paused) FTC lawsuit against PBMs for anti-competitive practices that have increased drug costs. Caremark, Express Scripts and Optum Rx are all under scrutiny.
A report by the Department of Health and Human Services’ Assistant Secretary for Planning and Evaluation found that between 2022 and 2023, prices for nearly 2,000 drugs increased faster than the rate of general inflation, with an average price hike of 15.2%.This is where many health systems are bleeding cash, so much so that some have even turned to insourcing their PBMs.
A 2023 survey by Pharmaceutical Strategies Group revealed that organizations are increasingly frustrated with a lack of flexibility, limited transparency and misaligned incentives with PBMs.
Many health systems and organizations such as large employers and health plans want a PBM solution with more flexibility, transparency and control. They are turning to insourcing their pharmacy benefits as a strategic alternative.
While this can seem daunting, partnering is another option. Partnering with technology providers, consulting firms, or specialized PBM service providers to start your own PBM can offer control and cost transparency while still pursuing significant savings. Look to create operational efficiency in a model that works well for your health system’s specific needs, while driving down costs.
CFO to do: Stay strict on pharmaceutical rebate negotiation, transparency and PBM contracts in general, and consider insourcing or creating a strategic partnership for PBM services as an alternative.
How can technology help drive down operational costs?
In this episode of HL Shorts, we hear from Lynn Ansley VP of Revenue Cycle Management at Moffitt Cancer Center, and a HealthLeaders Exchange member. On The Winning Edge, a HealthLeaders webinar series, Ansley spoke about how she utilizes technology in her revenue cycle department to create a "technology empowered workforce."
From tariffs, to Medicaid, to PBMs, here’s what to know.
There’s a lot happening in the regulatory space right now, which means there is a lot for CFOs to navigate and make the best decisions for their health systems.
Check out this infographic for three tips on the most prominent areas of the regulatory space and how CFOs can strategize around them for long-term sustainability.
See how this CFO balances inpatient and outpatient capacities at a Level II Trauma Center.
At Medical City Denton, a 228-bed, acute care hospital with more than 900 employees and 1,100 physicians, balancing several different types of patient care, — from strokes to open heart surgery — is a big task.
Whitney Bendel took over as CFO of the organization in August 2024; she shared what goes into the financial management of an organization like this, from insurance challenges to growth opportunities.
The Pulse of the Organization
With over 10,000 annual admissions, Bendel's organization takes on a variety of specialty services including cardiology, imaging, neurological care, orthopedic care, spine care and surgery.
A big component to ensuring these services and reimbursement run smoothly is coverage, which can become tricky, Bendel says. The organization sees many critically ill patients coming from all over the state, requiring subspecialty coverage, which comes with the weight of policy complexities.
Two big factors come into maintaining a Level II trauma center, according to Bendel. One is ensuring there is comprehensive subspecialty coverage in place, and the other is having physicians to cover those services.
"We see patients coming from all over, and many are unfunded or underfunded populations, which can make it challenging from a reimbursement standpoint," Bendel says. "Of course, we want to serve our community and will always provide care for anyone who walks through our doors, but that dynamic can cause some financial challenges."
But Denton is prepared for these challenges and works to help these patients obtain coverage.
"We have financial counselors and public benefit coordinators to help support patients in obtaining insurance coverage while they are in the hospital," Bendel adds.
Labor costs for these specialty physician groups also come into play, but at an organization like Medical City Denton, a part of HCA Healthcare, Bendel says the organization is stable in its market.
"We offer our teams relocation and referral benefits to help bring in experienced staff. We also partner with technical schools and college programs to allow students to do their clinical rounds at the facility. HCA also started the Galen College of Nursing and there is a local DFW campus," Bendel says. "[Also,] we have a robust nurse resident program to onboard new graduates and give them the opportunity to grow within the organization."
Aiding in this stability are the organization's sister hospitals like Medical City Heart and Spine, and Medical City Argyle, which recently joined the Medical City group; through both locations Denton can serve the community in cardiac services.
At Medical City Heart and Spine specifically, the organization helps to "offer higher levels of care for ECMO and heart transplant patients," allowing Denton to focus on its various acute cardiac patients.
Bendel highlighted a key focus of the organization: exploring the opportunities for growth through these service line expansions.
"For the Argyle Campus we are excited about our current and growing orthopedic and robotic GYN volume as well as identifying new opportunities for spine and robotic general surgery," Bendel says. "We also continue to drive awareness around the free-standing ER located on the front corner of campus. Patients can get in and out quickly."
Innovative tools also come into play here. To ensure Denton's patients get the highest level of care with the least complications, the organization has invested in the Inari Thrombectomy device to treat pulmonary embolism.
"It's fairly new to Medical City Denton, it's a device that allows the proceduralist to grab the pulmonary embolism in a single case as opposed to the patient going to the operating room multiple times," Bendel says. "There are less complications, shorter length of stay, less ICU time; this device has played a key role in innovation in our cardiac service line."
Growth and Understanding the Market
For Denton, one of the largest and most comprehensive providers in North Texas, understanding the market from both a broad perspective and a community one is crucial to understanding and creating opportunities for growth.
Staying vigilant on circumstances such as shifting population growth, shifting age demographics, new providers, and new service line offerings all help in understanding the market and where opportunities may lie, Bendel says.
"Understanding the market demand is vital, then you can help align your facility and your team to what the market needs. We also have to make sure we are balancing inpatient capacity," Bendel says. "You have to understand the service area and market needs to be able to provide services in demand. As the population grows, ages, shifts there are different service lines that become more in demand while others decline. Understanding the population and competitors in the market drives your strategy for growth."
With many services being pushed to outpatient settings, Bendel says Denton must find a balance to ensure it is aligning its "inpatient needs with services that are being pushed to outpatient."
"We have to ensure we are leveraging our operating room capacity appropriately to maintain our current book of business and continue to grow," says Bendel. It's a multifaceted approach, she explains, ensuring that the organization has the equipment, the services, and the staff it needs to continue to grow in specific service lines.
Understand that the market comes first, says Bendel. Then make adjustments to make sure "that your current team is aligned and supported to meet the demand."
"Proactive not reactive" cost containment strategies are vital for finance executives.
Healthcare costs are rising. From labor costs, to technology investments, to shifting reimbursements models, many components are fueling heightened costs. It's enough to give CFOs whiplash.
In this week’s episode of The Winning Edge, sponsored by HealthTrust, panelists dove into the nuances of cost containment for finance executives in 2025. Lynn Ansley, Vice President of Revenue Cycle Management at Moffitt Cancer Center, James Dregney, Chief Financial Officer and Vice President of Finance and Operations at Sauk Prairie Healthcare, and Rich Philbrick, SVP, Strategic Accounts and Performance Solutions at HealthTrust, discussed what cost containment means for health systems and how they are strategizing in 2025.
