With 2022 coming to an in depth, CFOs are waiting for 2023 and potential challenges. Daniel Morash, senior vice chairman of finance and CFO for Boston-based Brigham and Ladies’s Hospital, has recommendation for the way finest to navigate these challenges.
Previous to Brigham and Ladies’s Hospital, Mr. Morash additionally served as senior vice chairman and CFO for the Mass Basic Physicians Group.
Right here, Mr. Morash solutions Becker’s questions on recommendation for fellow CFOs and what lies forward.
Query: Many CFOs and monetary consultants expect a recession. How can hospital CFOs finest navigate this?
Daniel Morash: It is not simple to plan for a recession, notably as a result of it could actually have each unfavorable (payer combine, affected person quantity) and constructive impacts (lower in labor and provide inflation) on our monetary efficiency. The very best recommendation I might give is that hospitals want to contemplate recession situations when making long-term commitments on wage will increase, capital expenditures and planning for capability for affected person entry. Most of our focus must be on the acute challenges we face. Nonetheless, it is necessary to watch out to not overreact or overcommit financially when a recession may change a variety of tendencies we’re seeing now.
Q: With ongoing, rising working and provide chain prices, what would you advocate to hospitals?
DM: Ongoing, rising working and provide chain prices are forcing us to react to a altering market shortly and prioritize extra aggressively. Significantly with wage inflation, our operational groups are beneath loads of pressure to proceed to serve our sufferers and supply the most effective care doable whereas seeing labor shortages in lots of crucial areas. The very best advice I could make is to make sure medical operations and finance are working very intently collectively. Throughout the finance operate, we’re clearly articulating the tradeoffs that should be made when contemplating what areas to deal with.
Q: As healthcare wraps up its final quarter of the 12 months and prepares for 2023, what do you anticipate? What recommendation do you’ve gotten?
DM: Subsequent 12 months goes to be difficult, however we’re beginning to see some constructive tendencies in This autumn and have well-developed plans for overcoming among the greatest monetary hurdles we have seen this 12 months. I might advocate being clear not solely in regards to the tough monetary performances most of us are seeing this 12 months, but additionally about the place we’re beginning to see actual enchancment that can provide us all confidence that [2023] will likely be a considerably higher 12 months than [2022].