What's the #1 issue facing Health system finance leaders

There is no one definitive answer to the #1 issue facing health system #CFOs as it can vary depending on the specific circumstances of the organization and the larger healthcare industry. To be clear I scored a B+ in my MBA Finance class and by no means think I'm an expert in this field. This is my personal take based on my reading and conversations with health system CFOs and Health system leaders around the USA - here are some of the common challenges faced by health system CFOs in 2023 :

1. Cost containment and financial sustainability: Health systems face increasing pressure to control costs and maintain financial stability in the face of rising expenses for care delivery, regulatory changes, and competition.

Supply/chain and new pharmaceuticals are not making this easy on CFO cost containment. Brick/Mortar expenses and workforce challenges also play into this. his includes #workforce challenges. Nurses and Physicians do not grow on trees. Nursing and Physician shortage and the virtual solution for this issue are both individual LinkedIn articles for another day! I highly suggest checking out this take.

1. Revenue cycle management: Effective management of the revenue cycle, including accurate billing and claims submissions, is critical to ensuring that health systems receive fair and timely payment for the care they provide. Rev Cycle will remain a very challenging issue in healthcare finance- no silver bullet here, but I'm excited about the many companies , leaders and firends who working on addressing Rev Cycle in healthcare.
2. Value-based care: The shift towards value-based care, in which healthcare providers are reimbursed based on patient outcomes rather than the volume of services they provide, is requiring health systems to fundamentally change the way they do business. I truly love Value-based over Fee for Service for multiple reason, but most importantly because it comes down to Preventative>Treatment. This "shift" has been talked about forever and seems as slow as Earth's continent moving in Alfred Wegener's Earth's Plate Tectonic Theory.
3. Payment reform and reimbursement challenges: Healthcare reimbursement is becoming more complex, with multiple payers each having their own set of rules and regulations. Health systems must navigate this complex landscape to ensure they are paid accurately and fairly for the care they provide.
4. Technology and data management: Health systems must effectively manage technology and data to support clinical decision-making, meet regulatory requirements, and maintain financial stability.

These are all big Mountains for CFOs and by no means is a complete list for all the financials challenges health systems face today, but with the right technology strategy - Digital health, AI, and technology - many of these can dramatically improved financial issues at same help care delivery, workforce challenges and patient outcomes.

Again, these are just a few examples of the challenges faced by health system CFOs. The exact challenges faced by any given health system will depend on a variety of factors, including its size, geographic location, patient population, and payer mix. The right digital health strategy is vital and should also at the same time address financials issues the healthcare ecosystem faces today.