Opportunities and Obstacles: A CFO Conversation on Health System Financial Resiliency

May 24, 2023


The healthcare industry is facing significant challenges as it navigates economic uncertainties in 2021 and beyond. In a recent Iodine Intelligence podcast, Troy Wasilefsky of Iodine Software, Harold Mueller of BJC Healthcare, and Robin Damschroder of Henry Ford Health discussed strategies for building financial resilience and tackling the financial issues facing the industry.

The pandemic has led to a decline in overall CMI due to both a decrease in medical CMI and surgery volumes that have not yet returned to pre-pandemic levels. Cost-cutting is one approach to stabilize health system economics, but experts have agreed that it cannot be solely relied upon to achieve financial performance targets. Therefore, it is essential for organizations to pursue other strategies such as generating new revenue streams, capturing revenue for existing work, and leveraging technology such as AI.

Organizations can turn to management consultancies to help identify and stabilize their finances while also focusing on cost reduction efforts and growth strategies. Additionally, value-based care contracts incentivize better care coordination, higher-quality outcomes and cost reduction while improving documentation accuracy remains critical for reimbursement optimization and quality factors such as CMS payments.

In conclusion, healthcare organizations face significant challenges as they navigate economic uncertainties require balancing efforts between cost reduction and creating new revenue streams or capturing revenue appropriately for existing work. While there is no one-size-fits-all solution, organizations can leverage their resources and implement strategies such as management consultancies, growth initiatives, and technology to improve their financial resilience and help them face the current economic crisis.

Recent Episodes

nurses have shaped modern society
View episode

  Nurses Have Shaped Modern Society beyond healthcare to stand as pivotal figures that transcend their traditional roles, influencing the broader spectrum of societal change. Healthcare Rethink, a FinThrive podcast hosted by Brian Urban, welcomes Sarah DiGregorio, Journalist, Author, and Speake,r to discuss her second book, “Taking Care: The Story of Nursing and Its Power […]

View episode

  Healthcare is often synonymous with invasive procedures and impersonal treatment, but virtual care and its varying models are increasingly changing that. For this reason, this constantly changing landscape needs transformative leaders like Dr. Ryan Grant, Co-founder and CEO of Vori Health. His own transition from a surgical focus to tackling broader challenges in the […]

remake medicine
View episode

  Can art help remake medicine with the therapeutic potential to make a difference in healthcare? The rise of holistic approaches to well-being provides an opportunity to bring out the artistic side in healthcare. And on the latest episode of the Healthcare Rethink Podcast, host Brian Urban takes a deeper look into that intersection between […]