Date: November 17, 2017
Source: Becker’s Hospital Review
CFOs face various pressures amid federal legislative uncertainty and the shift to value-based care.
Given these pressures, they must set top priorities to focus on so they keep pace with industry changes. Three panelists recently discussed top priorities such as budgeting for revenues, controlling rising costs and access to capital during a session at the Becker’s Hospital Review 6th Annual CEO + CFO Roundtable in Chicago. Here are quotes from the panelists.
Budgeting for Revenues
Gordon Edwards, CFO of Marshfield (Wis.) Clinic Health System, said his organization eliminated its traditional budget and instead implemented a construct with two pieces. One of these pieces is a forecast aspect to see if Marshfield Clinic is meeting the board’s goals. Another piece, he said, focuses on the management side and reorienting leadership around how to respond to demand and how to manage resources relative to demand.
“I don’t think we’ve reduced the time [previously spent on the traditional budget process] — we’ve repurposed the time to better use. As we like to describe it to our leaders, we felt we spent $2 million a year in resources to create a document that was outdated the day the board approved it and really wasn’t used throughout the fiscal year. So instead of spending that time and money on creating a document, we’re spending the time and money around how do we continually improve our operations.”
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