Becker's Hospital Review

13 CFO / FINANCE Companies expand CFOs' role to retain them amid high demand By Nathan Tucker T he pressure is on for boards to hold onto chief financial officers as firms face the prospect of an economic slowdown and intense competition for talent. Demand for finance chiefs continues to be high in U.S. businesses, according to a July 4 report from The Wall Street Journal. Data from Russell Reynolds Associates indicates that CFO turnover at companies in the S&P 500 rose to 18 percent in 2021, compared to 15 percent in 2020 and 14 percent in 2019. Some new strategies call for broadening CFO responsibilities or elevating their positions altogether to retain top executives, according to Joel von Ranson, head of recruitment firm Spencer Stuart's global functional practices. "Companies create these broader roles and titles to engage and recognize and motivate the very best of the best," Mr. von Ranson said. CFOs at companies in the S&P 500 and Fortune 500 average about five years in their job, according to executive search firm Crist Kolder Associates. Expanding the CFO role allows organizations to create opportunities to retain key talent past the five-year mark. In 2021, just under 8 percent of chief executive officers at companies in the S&P 500 and Fortune 500 came from the CFO seat. n RNs among essential workers least satisfied with wage increases By Hayley DeSilva N urse wages may have increased throughout the pandemic, but the perception that these wages were fair have decreased, according to a recent study from Payscale. The study included data on the most common titles obtained from Payscale's online salary survey. Positions included in the study were generic nurses, emergency room nurses and critical care nurses. Since 2019, median wages for generic nurses grew 14 percent, critical care nurses grew 11 percent and emergency room nurses grew 10 percent. However, belief that wages were fair dropped since 2019 for all types of nurses. In 2019, 25 percent of generic nurses and critical care nurses felt they were fairly paid. Twenty-four percent of emergency room nurses felt they were fairly paid in 2019. In 2021, fair pay perception dropped across all three titles. Twenty percent of general nurses, 15 percent of critical care nurses and 21 percent of emergency room nurses felt they were fairly paid in 2021. Wage increases have been used to meet the high demand for nursing staff during the pandemic. A previous report from Payscale found a "strong correlation between fair pay perception and intent to leave." n Inflation to erode nonprofit hospital margins, Fitch reports By Hayley DeSilva D ue to ongoing inflation and higher labor, supply and capital costs, nonprofit hospital margins will see further erosion, Fitch reported July 19. Nonprofit hospital margins already took a hit during the pandemic. "With ongoing margin pressures as a result of the pandemic and materially higher inflation, providers will be compelled to attempt to secure much higher rate increases from their commercial payor," according to the report. "is will not be easy, as commercial payors are also facing similar inflationary pressures and consolidated in recent years, resulting in increased leverage over health systems." e report continues that it does not expect CMS to adjust Medicare or Medicaid rates due to inflation. Additionally, it may take years for providers to return to the margins of 2019, pre-pandemic, with many providers currently reporting much thinner margins. Fitch says some providers may benefit from seeking rate increases. e report cites Burlington-based University of Vermont Health Network and Rutland (Vt.) Regional Medical Center as an example, which each asked their state for a nearly 20 percent rate increase. While Rutland Regional's request was denied, it has yet to be announced whether UVM's request was granted. Mergers and acquisitions are being fueled by this inflation, according to the report. However, healthcare regulators are becoming increasingly stringent with these deals to avoid monopolies. Inflation of supplies, higher debt financing, and regulators denying or examining mergers and acquisitions has led to delays in many hospital expansions or renovations. n

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