Issue link: https://beckershealthcare.uberflip.com/i/1430054
16 CFO / FINANCE The skills hospital CFOs need to thrive, according to Providence CFO Greg Hoffman By Alia Paavola G reg Hoffman serves as the CFO of Providence, a 52-hospital system with more than $25 billion in annual revenue. Mr. Hoffman became permanent finance chief of the Renton, Wash.-based system in January aer serving on an interim basis for several months. Before taking on the top finance role, Mr. Hoffman served as Providence's chief transformation officer. Here, Mr. Hoffman discusses what he thinks is the most pressing is- sue for hospital CFOs amid the fall 2021 COVID-19 surge, the skills finance chiefs need to succeed in today's healthcare landscape and Providence's short- and long-term financial priorities. Editor's note: Responses were edited lightly for length, clarity and style. is interview was conducted in September 2021. Question: What is the most pressing issue for hospital CFOs amid the fall COVID-19 surge? Greg Hoffman: Similar to the beginning of the surge, it is financial liquidity and stabilization. Our COVID-19 losses were greater than reimbursement from the Coronavirus Aid, Relief and Economic Se- curity Act, the Federal Emergency Management Agency and other programs entering into the delta surge. e current surge and labor shortage is exacerbating the situation. Our management team is ac- tively managing all of these issues to ensure we have the resources available to not only address the spikes in COVID-19 cases, but con- tinue to serve our communities for a wide variety of healthcare needs. Q: What are Providence's top financial priorities for 2022? GH: We are looking at it both in the short term and long term. In the short term, ensuring that we remain resilient to handle any future complications, whether future variants or other macroeconomic fac- tors. At the same time, ensuring we maintain the well-being for our caregivers while also addressing many health needs in our communi- ties that have accumulated or been deferred while addressing surges. In the long run, it is continuing to lay the road map for our Destina- tion Health 2025 strategy by smartly investing in growth, moderniza- tion and diversification. Q: What skills are essential for hospital and health system CFOs to thrive in today's healthcare landscape? GH: Starting with the context of the current landscape, we were un- dergoing significant clinical, technical and economic transforma- tion already as an industry before COVID-19. e pandemic has increased the speed of those trends and the imperative to respond. us, resource allocation is going to become even more important as we balance the investments for our communities today and for the future. is will place a premium on combined core hard and so skills. Core finance and valuation skills remain important. However, where investments are made, where value is realized and where risk occurs is changing significantly, including the timing. Past paradigms also will change. us, decision-making skills and frameworks will be even more important for facilitating management resource allo- cation. Collaboration and influence skills also are essential. In a rap- idly changing environment, collaboration is even more important to draw in the best ideas from a diverse set of thoughts. A CFO that collaborates well can then provide influence by coupling the best stra- tegic thinking from management with finance and decision-making frameworks to guide investment. Q: What capital projects does Providence have in the works? GH: Our capital program contemplates several pillars on behalf of our mission. First, continued investment in best-in-class equipment and facilities for our patients and caregivers. Second, continued mod- ernization of our processes and technology to ease the way for our patients and caregivers. And, lastly, investing in growth and diversifi- cation across our multiple lines of business in the care continuum and our diversified businesses like Tegria (a technology service firm) and Ayin (a population health company). n New Jersey hospital renamed after getting $100M gift By Marissa Plescia L ivingston, N.J.-based Saint Barnabas Medical Center received a $100 million donation from the Cooperman Family Foundation, prompting it to rename the hospital Cooperman Barnabas Medical Center, according to a Sept. 30 press release emailed to Becker's. Leon Cooperman is a successful financier on Wall Street and his wife, Toby, dedicated her life to working with people with developmental disabilities. "I am at the point in my life where I want my gifts to have real impact, and I could think of no better way to do that than to make this investment in healthcare in the community that has given so much to our family," Mr. Cooperman said. "The pandemic has shown us that heroes are working in our hospitals every day, and I'm honored to help support their work." It's the largest donation ever received by a hospital in New Jersey. The Cooperman family has donated to the hospital more than 100 times. "The Cooperman family has helped us become the renowned institution we are today," said Barry H. Os- trowsky, CEO of RWJBarnabas Health, the hospital's parent company. "Today's generous gift from Leon and Toby Cooperman is transformational and ensures that our medical center will continue to develop as a state- of-the-art medical campus and a leader in protecting and supporting the health of the community." n