Hospital chief financial officers should anticipate a fiscal renaissance of sorts once 2014 commences and the Affordable Care Act kicks into high gear, reported HealthLeaders Media. But it will require planning, discipline and a likelihood of some short-term losses.
For example, Kevin Vermeer, CFO of the 26-hospital Iowa Health System, told an audience at the recent American Medical Group Association conference that he expected revenues to decrease, according to the article. At the same time, the system is preparing for a brighter fiscal future by entering into several accountable care organization initiatives.
Michigan's Beaumont Health System is addressing the future by making more strategic cuts. "For us that (meant) share-of-saving and value management," CEO Gene Michalski told HealthLeaders.
At Orlando Health, such reductions means large layoffs. It recently cut 400 jobs--about 3 percent of its workforce, according to the Orlando Sentinel. However, the system also us undertaking a $300 million renovation of Orlando Regional Medical Center.
"Healthcare reform mandates and changes in reimbursement structures for Medicare and Medicaid are forcing healthcare organizations throughout the United States to confront new challenges," Orlando CEO Sherrie Sitarik told the Sentinel. "We must find better ways to deliver enhanced value to patients and lower the overall cost of care."