Financial Sustainability Report: June 2021

This June issue of the Financial Sustainability Report, sponsored by Kaufman Hall, leads off with results of HFMA’s recent report examining the evolving role of the healthcare CFO over the next decade. Two features also examine steps health systems to promote success with value-based payment initiatives, including developing models to inform their efforts with risk-based contracts and focusing efforts on removing impediments to success under such contracts.

Healthcare 2030

CFO of the future: The new and improved healthcare finance leader of tomorrow 
In this first installment of HFMA’s Healthcare 2030 series, CFOs with leading health systems describe how their roles are becoming more strategic as big changes take hold in the industry.

Value-based payment

4 models for managing risk can lay the foundation for value-based payment success
By Daniel J. Marino and Kathy Najarian
By adopting four models for optimizing costs, care delivery, the continuum of care and contracts under risk-based payment, health systems can create an integrated framework for guiding their value-focused strategy and focusing their efforts in risk-based contracting.

Transitioning health systems to accepting more risk: Key steps to ensuring financial sustainability
By Orry Jacobs, MBA, and Kevin Sears
The COVID-19 pandemic has renewed many health systems’ interest in pursuing population health initiatives. Yet success with such initiatives will remain elusive if they do not address two common barriers to success: lack of aligned incentives and insufficient infrastructure.

Patient Access

The ED is no longer your front door: It’s the physician’s office
Sponsored by Kaufman Hall
By Matthew Bates
As revenue from inpatient care continues to decline as a percentage of total revenue, health system leaders should acknowledge the pivotal role physicians play in bringing patients into their systems.

Risk Management

Healthcare CFOs should ensure their organizations’ contracts are well administered to avoid financial risk exposure
By Nathen Hershkowitz
Administering contracts is a core activity for healthcare organizations, given that contracts collectively reflect the organization’s business obligations, including all assets, relationships and terms it is required to manage. It therefore is an important concern for the senior finance leader.

Capital Finance

Commentary
Why bond insurance is making a comeback in healthcare
By John Anderson
Capital reserve requirements for bond insurers have recently changed, making bond insurance once again a viable option for hospitals or health systems seeking credit enhancement on their fixed-rate debt issuance.