The 2017 CFO Spotlight Survey attracted respondents from a number of industries in Phoenix and Tucson. We will highlight the health care segment here in terms of growth, risk factors, strengths and trends.
Responding health care companies were based mainly in Tucson, and 57% believed that the economic climate in their city is better than 12 months ago. Compared to just 27% of CFOs in 2016 who expected to raise prices for services, 57% of respondents in 2017 plan to raise prices. The rest plan to maintain prices. Industry consolidation is of great concern to leaders in health care, with 83% expecting some impact due to shifts in Medicare, fewer competing hospitals and insurance providers — and therefore less innovation. And yet, 83% of CFOs cited continuous innovation and reinvention as the largest change management issue impacting their businesses, followed by reputation management and compensation
It was not surprising that health care organizations offer the most diverse options for attracting and recruiting talent, including allowances for religious practices, revised dress codes, child care programs, and work at home options. Training was their biggest investment to retain talent, but also to offset risks in data security. CFOs viewed leadership transitions and changes to their business model as key challenges to sustaining quality and a strong reputation in the market. When it came to offsetting the costs of the Affordable Care Act, health care mirrored other industries by passing on costs to employees and implementing wellness programs, but the organizations responding this year had no plans to self-insure, compared to 50% of respondents in 2016.
AVERAGE SIZE: 97 to 550 employees
AVERAGE REVENUE: $10 million
CFO Says: “The only way for initiatives to progress is for all of our leaders to buy in and carry responsibility. No department can make unilateral policy changes. Clinical, administrative, and financial expertise are requirements for all leaders within our company.”
Revenue in 2017
Will increase significantly: 29%
Will increase slightly: 57%
Optimism? 57% somewhat optimistic
Access to Cash? Not a problem
Border Security? Not concerned
Environmental Issues? Not a problem
Top Areas of Focus:
Online Tools for Patients
Staff Training/Training Alternatives
CFOs and leaders in health care are more open to shifting their business model for employees and consumers, whether it involves diverse employee schedules and job descriptions or new methods of communication such as texting and patient self-service technologies.