Shocking: 87% of Hospital CFOs are NOT Prepared for Value-Based Reimbursement

According to a new research study, very few hospital CFOs are prepared to deal with the financial aftermath of constantly evolving business conditions, such as, care delivery methods and value-based reimbursements.

The study investigated around 160 healthcare organizations, hospitals and health systems, and the news that was discovered was quite troublesome.

The statistics recorded in the research study included:

• Only 13% of the Hospital CFOs are being prepared to handle any sort of evolution in payment processes and value-based reimbursement.
• After discussing this with many senior financial executives and CFOs, it was concluded that only 23% of the CFOs are actually prepared to deal with such cases, and are confident that their organization would be able to tackle and make quick adjustments in such cases.

It was stated by a consulting firm that this data is a serious concern for healthcare organizations out there, and should be dealt with immediately.

They further added that healthcare organizations should make use of performance management tools and processes in order to be better equipped with information so they are able to make quick corrections in order to achieve their strategic goals.

However, senior executives and health care organizations lack the necessary tools and data that is required to deal with new circumstances in the organization, such as value-based reimbursement.

Unfortunately, this will have an impact on their organizational strategies.

It is important to understand that such changes in business conditions can impact the healthcare organizations adversely, and with necessary data, immediate action should be taken.

It was also stated by the respondents that in order to make informed strategic decisions, there is a lot to be done in order to leverage operational as well as financial data.

Furthermore, it was also stated that there is immense pressure to find out about the impact of financial factors on the business strategy.

Evolution in business scenarios and value-base reimbursements are pushing financial executives to have a look again, at their operational strategies and not be just limited to financial data.

As per the statistics, the majority of CFOs deal with financial health, however, an equal number also deals with various other dimensions of performance that are aligned with value-based reimbursements.

Various other dimensions involve: care quality, clinical outcomes and patient experience.

In order to be successful in value-based reimbursement contracts, it is important to enhance your performance in the majority of these performance dimensions. Tools for data analytics are the best in order to deal with the constantly developing environment.

It was also reported by the respondents that there is limited access to data that is clean, which makes a significant hindrance in the adoption of data analytics.

Due to this, hospitals are no longer relying more on spreadsheets, for tactical, financial and strategic decision-making.

In conclusion, looking at the changing business environment, it is important that the CFOs and senior financial executives focus more on their role that they are playing in the organization.

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