The escalating challenges posed by rising healthcare costs in the United States are compelling Chief Financial Officers (CFOs) in the healthcare sector to explore innovative strategies. A recent survey conducted by Grant Thornton sheds light on the evolving landscape, where nearly half of rural hospitals in the country are operating at a financial deficit, amplifying the complex financial scenarios faced by finance leaders in healthcare organizations.
Grant Thornton's inaugural health care CFO survey, encompassing insights from 100 CFOs, identifies patient needs and patient-focused strategies as pivotal drivers for sector advancement. An overwhelming 71% of respondents highlighted automation as their primary focus, aiming to enhance operations and redirect resources toward optimizing the patient experience.
In the quest for cost efficiency without compromising patient care, finance leaders are proactively leveraging technology to improve their tech stacks and reduce reliance on manual processes. The survey underscores the importance of agility and innovation in successful automation implementation, emphasizing the need for CFOs to empathize with their teams during the integration of new technologies.
Beyond automation, CFOs are looking to streamline labor costs by optimizing existing expenditures. Approximately 63% are reducing labor costs by minimizing reliance on outside contracting, aiming to negotiate better rates and improve cost controls.
To address budgetary constraints, 39% of surveyed CFOs are planning to raise prices for care delivery, while 34% are considering reducing headcount and total working hours. Hospitals are also exploring hierarchical restructuring, delegating tasks down the ladder to lower-cost staff, potentially mitigating labor costs without compromising service quality, although the impact on service quality remains unaddressed in the survey.
Collaborative strategies are emerging as key solutions, with 44% of CFOs focusing on collaborations through healthcare plans. Preferred relationships with insurance providers could incentivize policyholders to choose specific hospital systems. Additionally, 32% are exploring partnerships with other hospital systems, while a smaller percentage are considering collaboration with private equity firms (14%) or retail market entrants (6%).
Despite the financial challenges, growth remains a priority for healthcare CFOs. Nearly three-quarters (73%) emphasize enhancing the patient experience as a growth outlook, with 65% aiming to expand into new markets and 64% planning to launch new services for growth.
In assessing investment priorities, CFOs prioritize strategic alignment with company goals and mission (39%), indicating a focus on sustainable growth over immediate returns on investment (ROI). The findings highlight a collective optimism among healthcare leaders, showcasing a commitment to navigating the financial landscape with resilience and innovation.
