ATLANTA--(BUSINESS WIRE)-- A recent survey of CFOs conducted by Tatum, the nation’s largest executive services firm, indicates the changes associated with healthcare reform, scheduled to take effect in January 2014, have not been a top priority for CFOs of middle market companies.
Results from the recent survey suggest as the deadline for compliance closes in, financial leaders have not yet had a chance to educate themselves about the nuances of the proposed healthcare overhaul and have not started paying attention to the impact of the new law on their companies and their companies’ bottom line (http://www.tatumllc.com/uploads/perspectives/Healthcare_Reform_Bill.pdf).
According to Terry Peltes, national managing partner of Tatum’s health care practice, it’s not unusual that CFOs have not yet given healthcare reform the attention it deserves. “Financial executives are typically consumed in the business of today and matters that affect current operational issues, rather than those three years out,” he said. “But, that said, it’s time to start thinking about the proper strategic choices organizations needed to be made in order to be positioned for the changes coming in 2014.”
Peltes notes that only one in five CFOs surveyed said they have given a great deal of thought to the implications of the changes in healthcare and seem to be relying on HR or insurance brokers to bring them up to speed. Almost three out of four said they were not very aware of the changes in health care, and about four in five said they were not very informed of the impact the changes will have on their own company. Furthermore, eight out of nine said they were not well informed about the penalties for non-compliance with the law and seven out of ten believe that their costs will increase while less than 22 percent think they will stay the same.
A subsequent question to that survey revealed the lack of attention to this critical topic could be in part that 60 percent of respondents indicated they would like to see the healthcare reform bill repealed in this session of Congress.
“Many executives appear to be waiting for the act to be finalized or hoping for its repeal. Regardless of the reason for procrastination, there is so much unknown surrounding the implementation of the new law that it’s imperative that CFOs conduct their due diligence now and begin to determine the impact of reform on their company,” said Peltes. “Keep in mind that we should consider not only the impact on financials, but on employee satisfaction, market perception and other organizational goals as well.”
Tatum (www.tatumllc.com) is a professional services firm that helps senior executives resolve strategic, financial and technology challenges, with particular focus on supporting the Office of the CFO. Tatum is a division of SFN Group, Inc. SFN operates a family of specialty businesses providing strategic workforce solutions in professional services and general staffing.
About the Survey of Business Conditions
Each month since 2001 Tatum takes a survey of its executive and consulting professionals nationwide to gain insight on the U.S. business climate. The survey measures business conditions for the past 30 days and looks ahead to the next 60 days, capturing opinions of CFOs, Controllers and CIOs in a broad base of industries across the country, offering a read on the pulse of the US economy.
KEYWORDS: United States North America Georgia
INDUSTRY KEYWORDS: Public Policy/Government Healthcare Reform Professional Services Insurance