Future CFOs will need to be prepared for these critical challenges.
The evolution of healthcare finance in a post-pandemic world is complex. As it evolves, future leaders will face a volatile landscape that requires not only financial acumen but also strategic leadership, effective collaboration with lawmakers, and the ability to engage with clinical teams.
At the recent HealthLeaders UpNext CFO Exchange, a few critical themes emerged that will shape the next generation of healthcare finance leaders.
Proactive collaboration with lawmakers
Kurt Barwis, CEO of Bristol Hospital, led a passionate discussion on why future finance leaders must be proactive with lawmakers on healthcare legislation. Barwis, a registered lobbyist in Connecticut, and former governor of the American College of Healthcare Executives, said healthcare CFOs have a unique position to influence policy, particularly in advocating for reforms that can alleviate financial pressure on healthcare providers.
“You can make incredible change, and not just for your organization,” he said.
Healthcare funding is being increasingly dictated by political forces, with legislative changes impacting reimbursement rates, insurance policies, and public health initiatives. Up and coming CFOs will have to step beyond traditional roles and develop the skills necessary to engage with policymakers. This involves understanding the nuances of healthcare policy, building relationships with legislators, and advocating for sustainable funding and reimbursement models that ensure both the financial health of healthcare institutions and access to care for patients.
Overcome imposter syndrome to become a leader
Many future healthcare finance leaders also grapple with imposter syndrome, a prominent topic at the event. Healthcare finance is a high-stakes field, and it’s not uncommon for leaders to feel overwhelmed by the complexity of their roles.
A discussion led by executives at Bluepoint Leadership emphasized the importance of confidence and clarity in leadership, and the benefits of changing perspectives. Emerging leaders need to focus on developing a leadership mindset rather than merely technical expertise. They will need to think of ways to build trust across their teams while being transparent, and keep in mind that there is always more to learn.
Building resilience is the second piece to creating a solid leadership mindset. Fostering a culture of collaboration and being open to feedback from both financial peers and clinical teams can also help new leaders gain confidence and demonstrate their ability to lead effectively.
Exchange members engaged in leadership exercises explored questions that could help connect them with their team better. “What would you do if you knew you couldn’t fail?” or “What’s going to happen if you don’t change?” were a couple examples. By reframing a challenge with a specific question, leaders can help understand their team on a deeper level, and understand the different types of leadership styles within their organization.
Effective communication with clinical teams
A more complex industry calls for more dynamic communication between executive and clinical teams. It’s important for finance leaders to communicate transparently with clinicians about financial realities, reimbursement structures, and cost-control initiatives.
The most effective healthcare finance leaders of tomorrow will act as bridges between clinical teams and the executive leadership. Future CFOs must develop an understanding of clinical workflows and demonstrate how financial decisions impact patient care. They must also find a way to ensure clinical teams understand the financial impact of their decisions. Engaging clinicians in financial discussions can foster a culture of collaboration, where both groups work toward common goals of improving care quality and financial sustainability.
“Finance touches everyone in the organization and it’s important to make sure they are aware of current operations, future changes, etc. so there are no surprises,” said Exchange member and VP of Finance at UW Health Jodi Vitello.
Optimizing care access
Future finance leaders must also focus on finding innovative ways to balance financial sustainability with expanding access to care, especially in underserved and rural communities. Mayo Clinic CFO Jim Wilson, emphasized the need for more community partnerships, and leveraging technology to improve care delivery.
New finance leaders will need to think beyond traditional cost-cutting approaches. They must prioritize strategies that improve operational efficiencies while enhancing patient access. For example, increasing investments in telemedicine, expanding ambulatory care, and utilizing data analytics to streamline processes can help lower costs and expand services in a way that serves more patients.
Marie DeFreitas is the CFO editor for HealthLeaders.
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