How do financial experts in the healthcare space balance changes to many regulations, cost management goals, and reimbursement models?
Given all responsibility, it is surprising that CFO sales in healthcare are the lowest in each industry.
Victoria Salto knows It's not a cake walk. SATROR is the CFO and Executive Vice President of the AMALGAMATED family of businesses, including employee benefits managers and health care management businesses.
Salt's Handles Financial reports from the group's internal and external government and regulatory authorities coordinate periodic financial forecasts and pricing proposals for many merged companies.
In an interview, the Salto spoke about the specific skills that healthcare CFO positions require, and how to handle a long list of risks while striving for operational efficiency.
How do financial leaders' challenges differ in companies in the healthcare industry?
The healthcare industry poses many challenges for CFOs. There are complex state and federal regulatory environments, including portability and accountability laws for health insurance, affordable care laws, and health information technology for economic and clinical health laws. [which strengthened rules on privacy and security]. Finance must use layers of federal, state and private payer policies to navigate a highly regulated environment.
Another unique challenge is managing reimbursement models across government programs, such as private insurance and Medicaid and Medicare. These ever-evolving models include complex billing, collections, billing processing systems and workflows. A deep understanding of the risks of agility and compliance is required.
At the same time, healthcare companies need to provide excellent customer service and quality care to cost-effective participants.
How can CFOs do it as the complexity of regulations and reimbursement models grow? Stay compliant and hit efficiency KPIs?
CFOs must work closely with compliance, legal and cybersecurity to align their financial strategies with IT teams with regulatory changes. A strong relationship with leadership through function allows businesses to actively respond to evolving rules and regulations. CFOs should also prioritize regulatory education and awareness of financial and claims teams and maintain engagement with industry groups to predict policy changes.
What is the most effective strategy for managing operational and economic risks?
The best way to manage financial risk in this setting is to use an active and engaged corporate enterprise risk management committee. Our ERM committee meets annually with key personnel to identify and assess prominent areas of corporate risk. After assessing the identified risks, the committee is tasked with developing a risk assessment system. Quarterly meetings are recommended to optimize strategies to mitigate identified risks.
For financial professionals considering moving to healthcare, what important skills and industry knowledge should prioritize development?
I urge financial professionals seeking this transition to get used to state and federal regulations. Some important skills required are the ability to interpret complex financial data using analytics, understanding and ability to apply accounting principles, and [an aptitude for] Careful preparation.
Healthcare CFOs must be very skilled at developing and managing budgets, as well as identifying and managing costs. Finally, healthcare finance chiefs must fully comply with, understand and operate the relevant healthcare regulations and financial reporting standards.
