Issue link: https://beckershealthcare.uberflip.com/i/1516189
10 CEO / STRATEGY CFOs getting more CEO jobs By Alan Condon M ore CFOs are moving to CEO or president roles, but finance executives must be well-versed in what drives growth to find success in the corner office, Bloomberg reported Jan. 16. CFOs have historically been known for number crunching, but are increasingly taking on more operational responsibilities. eir roles have expanded beyond traditional finance and accounting, and the skills CFOs need have changed too. In 2023, a record 8.4% of companies represented in the S&P 500 and Fortune 500 promoted a finance chief to CEO, up from 5.8% 10 years ago ago, according to data from executive search firm Crist Kolder Associates. Data is based on a sample of about 674 companies. "CFOs are taking on a more operational role in those businesses, ingratiating themselves," Josh Crist, a co-managing partner at Crist Kolder, told Bloomberg. "e more you can grab as CFO, the more likely you will have chances at the top gig." Crist Kolder anticipates this trend to continue, with more CFOs landing in CEO roles as companies aim to get their finances back to a more stable footing amid an unstable outlook for the U.S. economy. CFOs are strategic leaders and drive performance across the organization. ough CFOs who have been in the role for a decade or two may have a more traditional viewpoint, many are adapting to the role of the modern CFO and embracing their more strategic position. Despite the rising success of CFOs, serving as COO continues to be the clearest path to CEO, according to Crist Kolder, which found last year that almost 50% of CEOs who came from within an organization were previously in COO-type roles. n Rising uncompensated care costs have Denver Health at 'critical point,' CEO says By Andrew Cass D enver Health is pushing for more state and federal funding as it grapples with ballooning uncompensated care costs, NBC affiliate KUSA reported Jan. 9. CEO Donna Lynne, DrPH, told city and county leaders that Denver Health lost $60 million from uncompensated care in 2020, which doubled to $120 million in 2022, according to the report. In 2023, Denver Health — Colorado's only safety net hospital — lost $136 million, with $35 million of that coming from patients who live outside the city. Dr. Lynne said "Denver Health is at a critical, critical point," and it is being forced to take drastic measures to meet financial demands. She said the system has managed to face the challenges by closing beds, according to the report. "To me, that's abominable," she said. "I don't want to do that. But because our operating costs exceed what our revenues are, we are turning down patients every day, particularly in the area of mental health and substance abuse." Dr. Lynne said Denver Health also has reduced its employees' salary increases. Among the challenges the safety net hospital is facing is caring for migrants, according to the report. The hospital has seen 8,000 migrants for 20,000 visits, but there is no reimbursement for that care. She said although she has "tremendous compassion for what's going on — it's heartbreaking — it's going to break Denver Health in a way that we didn't even anticipate." n More health system C-suite reorganizations ahead By Laura Dyrda M ultiple large health systems in the U.S. underwent a market reorganization in the last year by expanding their reach and formalizing leadership structures for resource optimization. St. Louis-based Ascension, Chicago-based CommonSpirit Health, Altamonte Springs, Fla.-based AdventHealth, West Des Moines, Iowa-based UnityPoint Health and more announced systemwide restructuring recently to appoint more divisional leaders funneling up into the corporate CEO. And more will likely follow in the next year, predicts Anu Singh, managing director and practice leader of partnerships, mergers and acquisitions at Kaufman Hall. In a Jan. 17 report, Mr. Singh noted the large system reorganizations and pointed out regional strongholds like St. Louis-based BJC HealthCare and Froedtert Health have made acquisitions that expanded their regional footprint. "Although cross-market mergers gain significant attention in 2023, we expect many health systems to focus on development of regional markets or, for larger national systems, the development of key regions within their portfolios," Mr. Singh wrote. "A key consideration will be balancing the advantages of scale with the ability to respond with agility to regional issues and opportunities." n