Obama Health Care

In the current war for talent, organizations are looking for talented CFOs with the proven leadership capabilities and track records of contributing to their employer’s strategic objectives. This article reveals the ways in which CFOs can differentiate themselves based on the ability to lead and manage in connection with established strategic goals.

The New CFO Role

We are now in a knowledge-driven marketplace where brainpower is the key resource for most businesses, most notably healthcare. In healthcare, the organizational winners are those that select individuals with considerable brainpower and subsequently apply that talent in the most creative ways. Recruiting and selecting such talented professionals is a crucial strategic issue and is a primary objective of healthcare organizations today.

While the objectives and requirements of healthcare organizations are changing, many veteran CFOs and finance professionals are feeling the pressure associated with this change. Roles that were once clear and defined are now changing and expanding, and many of you are asking, “How do I become a more effective contributor? What new skills do I need to position myself in this changing role and evolving industry?” Some of you are even asking, “Should I leave healthcare?”

So where do you, as CFOs, see yourselves in today’s knowledge-driven marketplace and emerging healthcare organizations?

First, your fundamental role continues to change. Just a few years ago, your role primarily revolved around managing a relatively large number of employees who collected and analyzed data for both cost containment and reimbursement maximization. Now, as a result of market forces and Medicare cuts associated with the Balance Budget Act, you are called upon to make business decisions regarding mergers and/or divestitures as well as the continuation of programs.

The new organizational realities demand that you assume a very different role. In the old model, finance had significant influence over operational issues. Finance is now called upon to assist operations in creating and delivering the value demanded by a very dynamic marketplace. This change moves you from a strictly financially driven focus to more of a business consultant role supporting operational initiatives. Your role as the CFO has expanded to include management oversight of non-financial functions in your organization, such as medical records, materials management, facilities, security, telecommunication, environmental services and human resources. Are you becoming the COO?

Second, this significant change in circumstance leaves you facing three conundrums:

The first is helping operations respond in a financially viable way to the quickly changing demands of the marketplace — a marketplace that keeps asking for new, different, and better services at lower costs.

The second is figuring out how to maintain consistent and sufficient cash flow in the face of the constantly changing payment formulas put forth by the government, insurance companies, and HMOs.

The third, and perhaps the hardest part for you, is keeping these two dynamic forces in alignment. Too often, the way your organization is paid is out of sync with the services demanded by the marketplace.

There is a shift from the scorekeeper duties of the old economy to the identification of solutions in the new economy. What hasn’t changed is that you still have the fiduciary responsibilities for protecting the assets of your organization. You must do this within the constraints of the reimbursement systems imposed upon your organization without compromising its ability to provide excellent services that are market-responsive. As such, you probably find yourself in the paradoxical roles of:

– Being a police officer: While being everyone’s pal

– Being an individual contributor: While also being a team player

– Being task-oriented: With strong relationship building skills

– Being predictable: Yet responding dynamically

– Being an historian: Yet planning for the future

– Having accounting knowledge: Applied to clinical outcomes

– Being a data gatherer: While maintaining a systems view

While the finance department is responsible for both sides of the chart above, your focus is increasingly on the right hand side.

The New CFO Skill Set: What it Takes to Succeed as the New CFO

The changing nature of healthcare and the resulting paradox in which you find yourself are inescapable. So, as the CFO, you must prepare yourself to meet all of the demands that are currently being placed upon you. You need to take an inventory of your current abilities and objectively compare them to the expertise you will need to move forward.

There are three areas in which you need a high level of knowledge to be an effective CFO because, in the new organizational reality, you are:

• Part business analyst. As such, you still need accounting/finance knowledge.

• Part COO. Your changing role requires a comprehensive understanding of the healthcare industry, not only from a financial perspective, but now also from an operational viewpoint. The familiar quote, “No margin, no mission and no mission, no margin,” defines the hard reality of what you are facing.

• Part lawyer. Negotiating and reviewing provider and supplier contracts, dealing with the buying and selling of assets, working with financing issues, etc., necessitates a high level of legal knowledge.

As an entrepreneurial CFO, you need two primary skills to maximize your abilities in the new economy.

The first skill involves critical thinking: the ability to sort through limited data quickly and determine its true importance; the power to obtain and maintain a long-term perspective; and the capacity to utilize “out-of-the-box,” creative thinking. CFOs must now be able to examine data from an opportunity perspective and not just from a bottom-line point of view. This means that finance cannot continue to only look backwards at an historically based budget and increase the coming year’s budget by 5% to reflect the Consumer Price Index.

Now, a CFO must read the marketplace and work with the value creators–the service providers– in the healthcare organization to explore trends and re-tool operations to meet the needs of a fickle marketplace. Your organization may even need to consider taking a financial risk in developing a service delivery area in anticipation of it providing access to a new, profitable market going forward.

The second primary skill is the ability to create and work within collaborative relationships both inside and outside of the organization. Departmental staffs no longer work independently, isolated from other departments. Their responsibilities often call for them to work crossfunctionally and collaboratively, integrating and supporting each other’s work.

Internally, in the new environs of healthcare, a CFO is frequently called upon to pull together multiple entities within the organization and assign them responsibilities that are interdependent.

Therefore, if issues arise which need to be arbitrated, CFOs must have well-developed conflict resolution skills in order to create mutually beneficial relationships. Resolving issues in a manner in which everyone wins is the key to creating long-term, productive relationships within the healthcare setting.

Externally, you must pull together some semblance of a unified, effective whole with the entities within your organization’s control and on whom it depends to fulfill its mission, i.e., payers, doctors, suppliers and other service providers. Meanwhile, you must still maintain fiscal health.

To Summarize

Healthcare organizations are looking for and rewarding those individuals with the brainpower and evolving skill sets necessary for the new CFO role of part business analyst, part COO, and part lawyer. For those with a talent for critical analysis as well as the ability to build collaborative relationships, the new environment in healthcare will be challenging and rewarding. Embracing these parameters for a successful career will allow CFOs to play a leading role in making healthcare organizations both market-responsive and fiscally sound.

This article is drawn from Phillips DiPisa’s Thought Leadership Library. You can find more perspectives on managing today’s complex healthcare organizations on our Web site at www.PhillipsDiPisa.com.

Phillips, DiPisa & Associates

62 Derby Street

Hingham, MA 02043

telephone: 781-740-9064

www.PhillipsDiPisa.com

Copyright (c) 2007. Phillips, DiPisa & Associates.

Phillips, DiPisa & Associates
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After home and living expenses such as rent or a mortgage, for a good number of American families healthcare can be the next greatest expenditure, and for many a big part of that overall healthcare cost can be their health insurance premium. However, according to financial experts, when it comes to preparing your family’s budget, there are ways to reduce both your health insurance cost, and what you pay for healthcare in general. Whether you are shopping for the first time for health insurance, or are looking for a new plan to reduce your monthly payments, here are 10 suggestions that can lead to a lower health insurance quote, and more affordable healthcare:

1. Stop Smoking – Depending on where you live you can save over $200.00 a month on the costs of cigarettes alone. As far as a health insurance quotes goes, non-smokers always pay significantly less than smokers for any policy. According to a recent study, even though smokers generally have a shorter lifespan than non-smokers, they pay a third more in overall healthcare than non-smokers throughout their lifetime.

2. Reduce Weight – Again weight plays a significant factor when getting a health insurance quote, it’s a fact that if you are overweight you will pay more. Obesity is becoming one of the greatest drains on our healthcare system. According to a recent study by the Rand Corporation, being obese adds $395 each year to your average per-year health care costs, more than smoking (an addition of $230), aging 20 years ($225), and problem drinking ($150).

3. Get More Exercise – While it may be hard to put a quantitative amount on how much you can save on a health insurance quote by exercising and getting in shape – regular exercise will not only reduce weight (see above) but can also improve cardio-vascular health and reduce other risk factors that lead to higher costs for health insurance and medical care.

4. Select a Higher Deductible – A higher deductible and higher co-pay will surely result in a lower health insurance quote, and may qualify you for a Health Savings Account (HSA) which can help defray the costs of the higher deductible.

5. Read and be Sure you Understand your Health Plan – you would be surprised at how many consumers pay more for healthcare simply because the do not know the details of their own heath insurance plan.

6. “Cheaper” isn’t always more “Affordable” – When it comes to a health insurance quote you must pick a plan that is right for you and your lifestyle. Cheaper doesn’t always mean more affordable in the long run. If you go for a health insurance quote with a smaller monthly premium, but if you have health problems and must make many doctors visits the high deductible or higher co-pay may cost you more in the long run. Choose a plan that is right for you.

7. Consolidate Your Health Plans –if you and your spouse both have separate health plans you may save money by consolidating under a single plan.

8. Be Proactive – and you can save money. For example know before you need them what if any ambulance services in your area are covered by your insurance, and when and if your regular physician is available after hours.

9. Be willing to Negotiate with Your Doctor – most physicians will offer reduced or discounted rates to patients with no or limited insurance.

10. Reduce the costs of Prescription Drugs – if you have heath insurance with prescription drug coverage, take advantage of the “lower tier” by asking your doctor to prescribe generic drugs, even if you do not have prescription drug coverage look into the discount programs offered by many drug companies and retail pharmacies.

Didier Moujaes
http://www.articlesbase.com/insurance-articles/health-insurance-quote-10-ways-to-reduce-your-cost-for-healthcare-111566.html

After central and breathing expenses double as crack or a mortgage, for a congruous contain of American families healthcare can be the looked toward greatest expenditure, and for many a big part of that overall healthcare cost can be their health insurance premium. However, according to financial experts, when it comes to preparing your family’s budget, there are ways to reduce both your health insurance cost, and what you pay for healthcare in general. Whether you are shopping for the first time for health insurance, or are looking for a new plan to reduce your monthly payments, here are 10 suggestions that can lead to a lower health insurance quote, and more affordable healthcare:

1. Stop Smoking – Depending on where you effectual you can hold back seeing $200.00 a continuance on the costs of cigarettes alone. As beneath as a health insurance quotes goes, non-smokers always bucks significantly less than smokers for slice policy. According to a recent study, even though smokers generally have a shorter lifespan than non-smokers, they pay a third more in overall healthcare than non-smokers throughout their lifetime.

2. Reduce Weight – Again sense plays a contributive agency when recipient a health insurance quote, it’s a advent that if you are rotund you will pay more. Obesity is becoming one of the greatest drains on our healthcare system. According to a recent study by the Rand Corporation, being obese adds $395 each year to your average per-year health care costs, more than smoking (an addition of $230), aging 20 years ($225), and problem drinking ($150).

3. Get More Exercise – While it may be bothersome to form a quantitative amount on how inimitably you can grip on a health insurance adduce by exercising and receipt in shape – regular exercise will not only reduce weight (see above) but can also improve cardio-vascular health and reduce other risk factors that lead to higher costs for health insurance and medical care.

4. Select a Higher Deductible – A another deductible and other co-pay will even so adjudicature in a lower health insurance quote, and may qualify you for a Health Savings Account (HSA) which can succour defray the costs of the higher deductible.

5. Read and be Sure you Understand your Health Plan – you would be surprised at how uncounted consumers coin supplementary for healthcare simply whereas
the get not see the details of their own heath insurance plan.

6. “Cheaper” isn’t always further “Affordable” – When it comes to a health insurance offer you demand heap a response that is right for you and your lifestyle. Cheaper doesn’t always nasty supplementary affordable in the long run. If you go for a health insurance quote with a smaller monthly premium, but if you have health problems and must make many doctors visits the high deductible or higher co-pay may cost you more in the long run. Choose a plan that is right for you.

7. Consolidate Your Health Plans -if you and your spouse both have contradictory health plans you may put up power by consolidating below a weird
plan.

8. Be Proactive – and you can withhold money. For example discern before you fascination them what if fraction ambulance services in your longitude are occult by your insurance, and when and if your regular physician is available after hours.

9. Be especial to Negotiate with Your Doctor – indeed physicians will offer destitute or discounted rates to patients with no or elfin insurance.

10. Reduce the costs of Prescription Drugs – if you have heath insurance with prescription drug coverage, gravy advantage of the “lower tier” by invitation your imbue to prescribe generic drugs, plane if you seal not have prescription drug coverage squint into the discount programs offered by many drug companies and retail pharmacies.

Neo Dome
http://www.articlesbase.com/finance-articles/10-ways-to-diminish-your-charge-for-healthcare-118633.html

Healthcare is expensive! If you are not fortunate enough to have a job with health insurance provided, then you know that you have a large extra expense waiting for you every month. Insurance, expensive as it seems, is nothing compared to the bills you might see if you need to make an emergency trip to the hospital. You have to pay for the ambulance fee, the hospital bed and medical equipment usage, and all the care you received while in the health care center. Depending on the health problem, treatments, and length of the hospital stay, the bill can be over $50,000. That is why insurance is so important! You never know when you will need the extra care.

Regular check-ups and routine exams are more common medical costs. However, these expenses only increase as you grow older because you have a greater chance for illness or injury. Seniors who have already retired from their jobs, however, do have a program in place that helps them pay for these expenses. Medicare is the United State’s program that provides health care for individuals age 65 years old and over. It is also available for individuals who fulfill special criteria no matter what age they are, such as those with Amyotrophic Lateral Sclerosis (ALS- Lou Gehrig’s disease).  President Lyndon B. Johnson signed this program into law on July 30, 1965. It has since provided health insurance for millions of Americans.

Medicare provides funding for a long list of medical equipment. Which items this program is obligated to pay for is listed in Title XVII of the Social Security Act and the term given to describe these items is durable medical equipment. These items include everything from wheelchairs, hospital beds, iron lungs, and oxygen tents. It also provides funding for those with diabetes and pays for items such as blood testing strips and blood glucose.

If you are interested in finding out more about Medicare, ask your health care professional or search related websites online. If you are already receiving Medicare and want to know if the medical supplies you pay for are considered durable medical equipment and therefore are covered expenses, check as soon as you can! You might be able to save much more money!

Jane Worthington
http://www.articlesbase.com/medicine-articles/the-difficulties-of-affording-healthcare-with-rising-costs-736134.html

Succeeding in a small business in America can be a daily battle.

The U.S. Department of Commerce has reported that out of every ten small businesses that are created, only two remain after ten years.1 And while a 20% survival rate can be scary enough to deal with, so can employee benefits costs, mainly, healthcare.

Healthcare costs continue to skyrocket across the board. And while big companies and small businesses continue to struggle to keep costs low, it’s usually small businesses that get hit the hardest. Healthcare costs continue to rise, sometimes with double-digit increases every year.

But that doesn’t mean there aren’t options available. Recently, more light has been shed on additional options to help small businesses save money and still offer healthcare.

Several options exist to help small companies reduce costs. One of the most popular is encouraging employees to get individual health insurance. Instead of you, the employer, subsidizing a large percentage of it, the cost of healthcare is shifted to the employee. And on average, individual premiums are less expensive than those of group plans.

And employers can help the employee out by giving a reimbursement to cover some of the costs, or by helping the employee handle their Section 125 deduction. Either way, the small business owner can reduce costs a great deal using this method and oftentimes it can be a less expensive route than the one currently used.

Another increasingly utilized option is to offer Section 105 plans to employees. Section 105 plans allow the employer to purchase a higher-deductible, (but lower cost), insurance coverage for their employees. The high-deductible is offset through an employer-controlled, tax-advantage fund that pays claims to the employees for medical costs below the deductible. The result is savings for the employer and the employee.

But not all companies will benefit from a Section 105. As with all plans, it’s important to consult with a financial professional to decide what type of healthcare savings can be achieved in your small business.

Section 105’s and encouraging the purchase of individual insurance are two ways to potentially save your small business money, at a time when small businesses are getting hit the hardest by healthcare costs. Making the tough decisions in all aspects of your business, and studying all your healthcare options to reduce costs as much as possible may just be one of the things that keeps you in the surviving 20% of small businesses.

Robert Valentine
http://www.articlesbase.com/non-fiction-articles/fighting-healthcare-costs-53296.html

Healthcare premiums have risen 87% over the past five years, well in excess of the cost-of-living and about four times faster than salaries and wages. Why are healthcare costs so out-of-control?

There are some obvious answers and many that are very debatable, such as regulation versus deregulation. There is also something of a vicious circle involved whereby pressures in one area of healthcare leads to problems in another area that increases the original pressure. Nursing salaries are a good example of this phenomenon.

Salaries

Hospital costs represent the largest part of all medical costs and hospital costs are rising at the greatest rate of all medical costs. The largest component of hospital cost is the cost of salaries. Nursing salaries are a major component of that cost. As hospitals are pressured to reduce costs, they have begun to treat nursing staff as “variable cost”, that is, when the patient census is low, they send nurses home and call them back when the census is higher. As a result, there are fewer fulltime nursing positions available and great pressure on the nursing staff available to care for patients. This situation has caused nurses to leave nursing, creating a void that is filled by agency nurses whose hourly rate is much more expensive, driving up salary costs. Nurses often prefer to become agency nurses so that they can control their schedules better and receive more money directly in their pockets.

Specialization

Medical students are choosing specialty practice over general practice in increasing numbers. Specialty healthcare tends to be more expensive than healthcare supplied by primary care physicians. In addition, when consumers are treated by a variety of specialty physicians without coordination by a primary care physician, conflicts in treatment and medication can lead to other medical problems.

Lack of primary care physicians

Many families have not established an ongoing relationship with a primary care physician. When they become ill, they go to the emergency department for care. Emergency care is the one of the most expensive ways to access medical care because the charges for emergency care must reflect the cost of 24 hour availability of highly trained physicians and nurses who are poised for life and death care. When that staff is used to treat a strep throat, that strep throat care becomes a very high cost treatment.

New Drugs

The cost of prescription drugs has been rising 6-9% annually for a number of years. Prescription drug cost increases are related to several factors:

1) the high cost of research and development; it takes about 20 years of research and testing to develop a new drug and that cost must be made up over the seven year life of a drug’s patent.

2) Marketing costs of persuading to use one manufacturer’s drugs over another’s drugs.

3) Investor demand for high profitability in the pharmaceutical sector has led to huge increases in price in order to meet high rate of investor return.

4) Biotechnology advances that are creating advances such as gene-specific drugs possible but at a high cost of development.

The Growing Uninsured

As healthcare costs increase and employers reduce their contribution to health insurance premiums, more Americans are uninsured or underinsured. People without insurance tend to put off seeking medical care until there’s a crisis. Treating people in crisis is much more expensive than providing preventive care. For example, it’s much easier and less expensive to monitor and control a hypertensive person’s blood pressure with a daily drug than it is to treat that person after a stroke.

Malpractice Litigation

Contrary to many people’s belief, malpractice litigation has an almost negligible effect on healthcare costs. However, malpractice premiums, often rising due to pressure on insurance companies to produce high value returns, do make medical care more expensive.

Many of the reasons for the rising cost of healthcare are systemic in nature and require a macro response. However, individual consumers can reduce their own healthcare costs by practicing prevention and selecting a primary care physician to oversee their healthcare needs.

For more information and clarification contact:
Alan Masters
800-795-6823 Toll Free
530-318-6971 Cell
Http://www.AlanMasters.com Website
AlanMasters@Ameriplan.net email

Alan Masters
http://www.articlesbase.com/medicine-articles/why-are-healthcare-costs-rising-truth-and-fallacy-105781.html