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The Evolving Role of CFO in Healthcare Industry As Stated by George S Ammar

The Evolving Role of CFO in Healthcare Industry As Stated by George S Ammar

George Ammar has vast experience as a financial executive. He has been associated with different industries like Manufacturing, Real Estate, Financial Services, Private Equity as well as Healthcare Industry. George S Ammar, in his career, has exhibited continuous evolution in his ways of handling responsibilities of each financial position that he has come across based on the ever-changing trends of the market irrespective of the industry categorization.

Healthcare & the evolution of the CFO Role

In the recent years, the Healthcare industry has undergone drastic transformation with respect to the kind of care provided to the patients and its perception to the consumers. Consumers select a hospital based on the care quality that is provided. Having become a highly customer-centric industry, the role of the CFO has also evolved. Today, the CFO of this industry is responsible to make sure that the quality metrics and policies, and all the procedures of the organization are in place so that the organization can deliver its patients a more positive experience. There is the huge risk of being left behind in competition if Qualified CFO’s are not brought in to help the organization to adapt to the changing trend of healthcare market.

New processes, newer policies

Gone are the earlier days where all the control was in the hands of the healthcare facility. In recent years the patients have gained more and more control whether it is about choosing the path of treatment or selecting the care providers. However, apart from this the CFO is at present confronted with new policies and processes that may have an impact on the company’s financial performance. Here are the external drivers:

HAC: The Hospital-acquired condition reduction program minimizes the payments of Medicare for specific subsections.

Clinical care guarantees (market-driven). By this, patients receive guarantees that ensure that they won’t be charged for any complications requiring clinical care that crop up post after the operation. Such 90-day warranties are applicable only to specific surgeries.

VBP: the value-based purchasing programs of hospitals adjust a certain amount of the Medicare payment to the hospitals on the basis of their rank on quality metrics.

The Bundled payment: This is a program whereby hospitals are provided with payments in accordance with the service quality that is offered in place of the care quality. This initiative has been taken to improve the care quality.

Hospital readmissions reduction initiative: this particular program is formulated so to reduce the payments for readmissions to acute care hospitals.

According to George S Ammar, changes in the operational systems have also been huge. CFO’s are today responsible to assist the organizations in determining the care costs in accordance to the utilized resources. Apart from the concerns of operational logistics and technology required in the healthcare industry, the CFO’s are presently facing massive challenges in the coding methodology for processes like reimbursement and billing. This is the age of migration from ICD (international classification of diseases)-9 to ICD-10. Thus if this major change with over 14,400 codes is not carefully implemented with the help of a CFO, the healthcare providers will confront significant challenges in revenue streaming and billing processes.

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