The medical CFO is responsible for ensuring that a hospital or hospital system works efficiently and effectively and manages any financial risks within the company. They are in charge of the majority of planning money and record keeping. It’s not uncommon for medical CFO services to provide a financial report on the hospital’s finances to the CEO and board of directors. In addition to supervising the finance department, he serves as the organization’s leading financial spokesman. Many of them are responsible for managing hospital finances and negotiating contract changes with vendors. They also identify ways to save money inside the company, and they hire influential hospital executives.
What Is The Role Of A Chief Financial Officer?
What a CFO performs may be split into three primary areas, which we’ll go over in more depth below. Check out our interactive career map to discover more about corporate finance job progressions.
When it comes to reporting, the Controller group is generally responsible for it. This team of specialists prepares all historical financial reports for shareholders, workers, lenders, research analysts, governments, and regulatory organizations. They also create the company’s annual reports. All reporting must be completed accurately and on schedule by this group.
The CFO must guarantee that the firm can satisfy its financial obligations and manage its cash flow in the most effective manner possible. Typically, these tasks are handled by the treasury group – a much smaller group than the reporting group. Accounts payable, receivable, and inventory are all managed by this group. They are also responsible for issuing any debt, managing investments, and other decisions relating to liquidity.
3. Return On Investment
CFOs also assist companies in maximizing their assets and capital’s risk-adjusted returns by helping them make the most of their resources (or return on equity). Finance and accounting (FP&A) teams are brought in to help the CFO estimate future cash flow and compare actual outcomes to what was planned. Finance and Accounting (FP&A) plays an integral part in the organization’s decision-making and analytics.
It’s also essential for the company’s investment returns to be maximized by its corporate development team, should it have one.
A Great Healthcare Cfo’s Qualities
Today’s chief financial officer has developed from a principal controller to a more strategic job controlling many aspects of the business, including compliance, finance, and risk management. Sixty-three percent of worldwide CEOs questioned by KPMG in 2015 feel that the CFO’s job will continue to gain importance over the coming three years.
An excellent hospital or health system CFO requires a particular set of skills. It’s a unique combination of all of these things.
Strategic Thinker: There is a tendency for every healthcare CFO to focus on what is in front of them (declining patient numbers, rising A/R, the move to value-based reimbursement, etc.) since it always appears more urgent and essential than anything else. Your healthcare organization is unfortunately in danger as a result of this temptation. Chief financial officers who can foresee, analyze critically, interpret, and negotiate the contemporary healthcare climate set their healthcare company up for long-term success in terms of finance.
Exceptional Communicator: In healthcare, communication is crucial in every job. When it comes to communicating their message, CFOs must listen and communicate effectively with all levels of healthcare staff up to the CEO. Extensive communication abilities are essential for building relationships and breaking through departmental silos.
Sense of Humor: When it comes to business, comedy is a great mood lifter. The adage “laughing is the greatest medicine” holds when it comes to CFOs. Even a little humor in the workplace may reduce tension and put people at ease.
Many more qualities, such as flexibility, experience, etc., are also present in CFO.
Indeed, a CFO accomplishes more than what is listed above. Several tasks fall within the purview of the CFO, such as providing leadership and communication with the company’s Board of Directors and its Suppliers/Vendors. Supply chain, procurement, information technology (IT), and nearly any other department might report to the CFO, depending on the business and the CFO’s skill set.