3 Health System CFOs Discuss Their
Changing Roles, Challenges and the Most
Important Thing CFOs Can do Today
By Ayla Ellison
T
hree health system
CFOs from across the
country weigh in on
how they have met the chal-
lenges of the changing CFO
role, the most important things
CFOs in the healthcare indus-
try can do today and how to
overcome anticipated challeng-
es in their field.
Note: Answers have been edit-
ed for length and clarity.
Question: How has the role of
health system CFO changed
in the last five years? What
have you done to adapt to
meet the new challenges?
Mr. Gordon Crabtree: e
CFO role has changed for both
external and internal busi-
ness and clinical activities.
Internally, there has been an
expanded need for the entire
healthcare team to understand
at the patient level, the physi-
cian level and the disease level
the costs and economics that
drive value and quality. is
requires a number of changes,
such as including non-financial
employees in business strategy
and decision making.
e CFO must also help devel-
op strategic alignment between
the physicians and must push
for efficient care delivery at a
level that ensures financial sta-
bility of the clinical enterprise.
New revenue payment models
together with slower revenue
growth rates, requires an en-
hanced business relationship
between the CFO and physi-
cians.
In addition, as payer rates
decline and as payers push to
develop simplified payment
models, the CFO must be more
involved in negotiations be-
tween payers and the health
system. Modeling of the new
payment methodologies by the
health system contracting team
is key to ensuring risk sensitive
levels of revenues are received
that will cover all aspects of
care and its many complexities
and costs.
Ms. JoAnn Kunkel: I believe
the role of the CFO has be-
come an invaluable strategic
position, particularly in the
last five years. With population
health, development of narrow
networks, leading with quality,
etc., the traditional CFO role
does not exist anymore.
Vital to the role of today's
system CFO is the ability to
lead as well as participate with
the entire executive team in
understanding what is on the
horizon, what the changing op-
portunities are and in forming
strategic initiatives for future
success.
Mr. Kevin Brennan: e CFO
position continues to require a
greater emphasis on strategic
planning, as well as increased
knowledge related to merger
and acquisition transactions
and skills in population health
management.
In adapting to the new chal-
lenges faced by CFOs, one
must focus on best practices,
standardization and balanced
investments for both short and
Roles, Challenges & Most Important Thing CFOs Can do Today 2
