Jeni Williams
Senior Editor, HFMA
Do you have what it takes to be a CFO? More than 50 HFMA members who aspire to become CFOs attended a seminar at the 2006 Annual National Institute to find the answer. According to presenter Robert Hemker, CFO for Palomar Pomerado Health in San Diego, there are eight primary things that healthcare CFOs need to know.
Who you are. Values such as integrity, honesty, respect, and ethics are critical for CFOs. They must display a willingness to be held accountable, not only to their organization, but to their patients, their employees, and their communities. “This one is a challenge, and some people are willing to accept that challenge, and some are not,” Hemker says.
Your customer. Knowing who your customers are and what their needs are is important no matter what type of organization you work for.
What a CFO is. “What you’ll find at each level of the organization is a unique understanding of what a CFO is,” Hemker says. For example, a CEO will likely view the CFO as a strategic and operational leader and an adviser and counselor to the senior leadership team regarding development of programs and services. A chief nursing officer, on the other hand, will view the CFO as “keeper of the purse strings,” the person who ensures the financial viability of the organization.
Your organization. Healthcare CFOs cannot get by on their knowledge of finance alone. They must also have a strong grasp of all of the organization’s operations, such as nursing, ancillary operations, strategic planning, marketing, IT, quality and patient safety, and the perspective of the organization’s medical staff.
The healthcare environment. CFOs must understand the external factors that affect health care, such as increasing regulation, competitive threats to market share, challenges to tax-exempt status, and risks to operating margins, as well as challenges such as disaster relief and recovery, management of capital and debt, and consumer-driven health care.
How to communicate effectively. The key to effective communication with all constituencies is to listen, listen, listen, Hemker says. Don’t speak in “financeze,” he says. Instead, learn your customer’s language.
How to execute strategy. This is the CFO’s most crucial role, Hemker says. “Each one of the challenges facing health care, although they seem like uncontrollables, has an element of strategy behind them,” he says. Knowing your constituency, through one-on-one interactions, will help you develop strategies to meet these challenges.
Succession planning. Surround yourself with future leaders and successors to the CFO role, Hemker says. Develop career ladder growth skills by developing additional skills, looking for new opportunities to grow, seeking mentors, and watching, learning, and growing.
