Understanding the Role of a CFO in Managing Healthcare Costs

From the 80’s to the 90’s and recently to an even greater extent, the whole business ecosystem has undergone important structural and functional changes. A tide-like wave has swept full-force across all industries and the healthcare sector is no exception. The effects of this new reality, impossible to ignore, have led us directly to the evolution and reshaping of various roles and approaches, even ideologies. In such a deep reformation of the general dynamics, the call for change is articulated loudly and clearly. All healthcare facilities interested in their survival and re-blossoming in this new era, must set in motion modern and refreshed plans; strategies and policies that will include and target even the most basic, every day functions.

Chief Financial Officer

The CFO position is one of the roles that has been in the center of these shifts. CFO’s’ functions have become more demanding, complex and holistic; their duties and responsibilities have obtained a more strategic aura. Today, a CFO must be able to design a general plan of action for the facility they work for, must set goals and ambitions, but at the same time must also be able to convey these decisions and moves to the C-suite and board. They must be able to draw a connecting line between grasping an idea and the path that will lead to its realization. To sum it up; in the core of today’s CFO figure we find an amalgam of notions like risk management, innovation, allocation of resources and gainsharing, just to name a few! OR in only two words, a CFO must be an Agent of Change.

Optimal financial performance is essential for the growth of any medical facility, but to achieve this Optimal Performance, everything must work in harmony. Communication and collaboration must be total and fluid; in all departments, and of course, all equipment handled must be in top shape as well.

But at the end of the day, our two old friends cost and debt, are always the two main parameters that will keep most CFO’s awake and worried. For the management of healthcare costs (which are usually high), a modern CFO can no longer suggest and implement mere budget restrictions. The logic of imposing –solely– austerity decisions is a thing of the past. The modern CFO must constantly have an eye on the market that surrounds them, be up-to-speed with all innovative solutions and advantages that this has to offer, assess and analyze them and then try to introduce them to its healthcare facility.

A competent CFO is expected to deliver in multiple areas and to accomplish this laborious task and must be continuously informed and educated (IF they wants to be able to inform and educate). It’s not only the Healthcare sector that is being transformed non-stop. Lately, we witness everyday the importance of trans-disciplinary interconnection. In the same way that “no man is an island” no sector is far apart from any other. Business is a corpus and all its veins communicate with each other!

Medical Equipment IQ

The financial necessities and the budget draw-up of a healthcare facility is heavily depended on medical equipment. Managing its acquisition, maintenance and repair costs in a manner that is efficient and profitable is decisive. Thankfully, nowadays it is possible to obtain high-quality medical devices at a lower cost with the right finance choices.

In our present market ecosystem there are companies and providers that put forth and provide extremely useful solutions. Profitability, flexibility and sustainable leasing plans and strategies are among those. An advantageous equipment leasing deal can influence in an extremely positive way, a medical center’s general financial situation. All types of healthcare facilities can enjoy tremendous gains, turning at last to solutions that combine stability and agility.

Methods that can guarantee reduced costs and that include everything; from the acquisition of the equipment, to the repair and maintenance needs, topped with valuable advice for any issue that might occur, do exist. For instance, the purchase, rent or lease of refurbished medical equipment can be a game changer. We are talking about equipment that can be considered new, as the manufacturers of the medical machines themselves have performed all necessary upgrades; in the software and hardware, ensuring even the existence of spare parts in the future…if needed.  

Solutions

Admittedly, reducing cost is a challenging and oftentimes unpleasant, task that becomes even more demanding when opting for long-term success, built on creative and liberating approaches and not for short-term rushed and facile solutions.

However, a well-prepared, well-trained, bold and experienced CFO will soon discover that the solution might be closer than imagined. A friendly, strong and honest Leasing Provider could be a reliable ally, that would ensure cost-cutting agreements, streamlined workflows and revenue-generating medical equipment; in general, an overall fortification of the organization. And the benefits don’t end here, all profits generated can be invested elsewhere or put aside for future unexpected expenses.

We have said it in the beginning but we feel we must repeat it; in a sector and in a general reality, driven by technological advances and nonstop scientific developments, to remain relevant and artful is a bet that must be won. The new role of the CFO in this ever-changing, constantly-transforming landscape is crucial. To submerge fearlessly into deep blue waters and emerge fully oxygenated is possible. To transform and adapt to new needs can be a joyous challenge. A CFO perfectly aligned with our era will know how to switch the F in CFO for Flexibility and will set the basis for an auto-sufficient, sustainable in ALL fronts, healthy healthcare organization. The right CFO will know that knowledge is applicable creativity.

Cost-optimization, new technologies implementation, and fresh security policies will no longer be parts of a complex equation but the ones of a fruitful answer. A trustworthy Leasing partner will be a stable and robust companion during all ventures through this competitive sector.  Leased equipment, refurbished devices and all kinds of modern, practical approaches to a series of pressing demands is what you should not demand, but require.