As Hospital Payment Systems Change, So Do CFOs' Jobs
by
Paul Barr
H&HN Senior Writer
Hospital and health system chief financial officers are in for a slew of new and changed responsibilities as a result of the health care industry’s evolving care and reimbursement model.
Framing the issue:
• Running the finance department of a hospital or health system, while never an easy endeavor, used to carry a certain degree of predictability. Those days are over as a result of health reform.• Changes in financial management will be necessary because of the added risk that hospitals are taking on, different cash flows resulting from adoption of new clinical and reimbursement models, and a shift of emphasis to outpatient care from inpatient care.
• Large amounts of capital will be needed to fund the costs associated with population health management, a major new imperative for health care providers.
Before the advent of health care reform, the work overseen by a hospital chief financial officer was relatively consistent from year to year. Despite an overall reimbursement and clinical model that is about as complicated and confusing as it gets, and despite regular changes in such areas as patient volume, payer pricing and labor expenses, the framework for how the system operated never required a significant overhaul.
That was then.
Read Full Article Here
Comments
Post a Comment