Browse by Topic
More than 40,000 members value HFMA's thought leadership and practical strategies. HFMA is where you need to be.
Get acquainted with the
healthcare finance industry's leading professional association. Find out why our
members rely on HFMA as their go-to source for insight and
Members have many
options for helping them advance their careers. Conferences, seminars,
eLearning, certification, and more -- our education and events will keep you
Connect the dots on today's big issues, explore collaborations, get career-boosting tips, and network with colleagues nationwide at the leading finance conference. Save $100 off the full conference rate when you register by May 8.
Real-time presentations with nationally recognized experts, networking opportunities, and industry solutions—no travel required!
Learn about timely healthcare finance topics and earn CPEs. Most live webinars are free for HFMA members and $99 for non-members. View the latest schedule.
If you're a subscriber to any of our three newsletters, you have access to online education. Learn more or subscribe.
Get the perspectives of leading healthcare finance professionals on today's hottest issues.
Information about leading vendors helps your buying decisions.
Forum members can network during live webinars or access a library of past webinars on topics such as bundled payment, charity care, and ICD-10.
An ever-expanding collection of spreadsheets, policies, job
descriptions, checklists, and more that you can adopt and adapt.
Forum members can submit vexing questions to a panel of experts
using our Ask the Expert service.
Your source for employment solutions.
Find new employment opportunities or
reach out to qualified candidates.
Distinguish yourself as a
leader among your peers and advance your career by earning certification in our
healthcare finance programs.
Get an objective third-party evaluation of products and services used in the healthcare finance workplace.
MAP App is a web-based application that helps organizations improve revenue cycle performance based on industry-standard metrics called MAP Keys.
Find suppliers and products in this comprehensive vendor directory for healthcare finance professionals.
Guidance for understanding and communicating about the price of health care.
Transformation toward value-based healthcare is reshaping the delivery of care, patient expectations, and payment structures.
Improve your revenue cycle performance through standard metrics, peer comparison, and successful practices.
Hospitals and health systems face numerous challenges in today’s evolving healthcare market, including declining utilization, new payment mechanisms, and an uncertain market environment. As a result, they also face higher organizational risks due to increasing financial complexity and volatility.
Responding to these challenges requires a comprehensive risk management initiative founded on a thorough understanding of risk and risk-bearing resources and how these two factors interact. Continuing to think about risk or resources in isolated silos can produce serious negative effects. Individual risk opportunities should be assessed within the context of a broader risk portfolio that encompasses operations, assets, and liabilities so that total risk expenditures do not exceed risk resources.
One highly effective component of an integrated risk and resource management effort is a process that we refer to as tiered liquidity. This construct builds off a detailed cataloguing of risk and resources, and matches invested assets against risks that are not hedged already by a dedicated resource (such as a bank line or letter of credit). The idea of tiered liquidity derives from the premise that decisions about managing risk require a solid understanding of both the portfolio of risk and the available hedges.
The baseline tiered liquidity process includes five core steps:
If this process reveals that volatilities between risk-adjusted and actual portfolios are in line, then the organization likely has struck an acceptable balance between risk and risk resources. If actual volatilities are higher than the risk-adjusted portfolio, then risk may exceed resources and the organization should dig deeper to assess whether to reduce risk or choose to tolerate the imbalance. If actual volatilities are lower than the risk-adjusted portfolio, the organization likely has some level of risk capacity to spend or retain as it chooses.
The tiered liquidity construct can be used to help assess new risk opportunities—such as the costs versus benefits of a particular capital structure action. As future risk opportunities are identified, the tiers should be adjusted, hedging dollars reallocated, and overall return expectations (and volatility) revised accordingly. The increase or decrease in return can be measured against the expected economic performance of the new risk opportunity to provide the organization with a sense of the risk-adjusted return.
The changes and challenges confronting the healthcare industry are significant, and hospitals and health systems likely will face increased volatility for some time. Organizations require a centralized and rigorous risk management process that they can learn from and refine over time and that allows them to make sound decisions about incurring, carrying, and hedging risk. A framework that includes tiered liquidity can be a valuable part of this effort, both now and into the future.
Eric Jordahl is a managing director and director, financial advisory practice, Kaufman, Hall & Associates, Inc., Skokie, Ill.
Publication Date: Tuesday, August 27, 2013
Brian Kueppers, founder and CEO, Apex, discusses the importance of a robust patient payment strategy in boosting organization revenue and enhancing patient satisfaction.
Brian Grazzini, CFO, HealthPort, describes the importance of efficient and compliant information exchange and audit management in helping HIM staff spend less time on paperwork and more on mission-critical projects.
Cindy Matthews, executive vice president, Community Hospital Corporation, discusses how rural and community hospitals can use collaborative partnering to position for success through tough market conditions.
Rick Heise, senior vice president, revenue cycle, at Cerner Corporation, discusses the importance of integrating clinical and financial data to excel in health care’s changing payment environment.
Dale Hockel, senior vice president of operations, and Jim Fanelli, CFO, TriMedx, share strategies for elevating clinical engineering through innovative management programs.
Russ Graney, founder and CEO for Aidin, and John Laursen, head of business development for Aidin, share insights on how to improve care transitions between acute and post-acute care settings and incentivize high-quality patient outcomes.
Scott Elston, strategic accounts manager, GE Healthcare Services, describes how substantial cost reduction in health care requires rethinking business strategy and asset use.
Robert Williams, MD, director, Deloitte Consulting LLP, and Arielle Freiberger, product strategist, ConvergeHEALTH by Deloitte, explain how sophisticated retrospective, real-time, and predictive data analytics can inform decision making to reduce costs and improve care.
Stuart Hanson, director of business development (healthcare solutions) at Citi Retail Services, discusses how improving the payment experience can benefit consumers and healthcare providers.
Scott Schmidt, vice president, Cerner RevWorks, LLC, shares insights on best practices for maximizing a revenue cycle management partnership.
©2015 Copyright Healthcare Financial Management Association
HFMA.org is best viewed using IE9 or the latest versions of Chrome, Firefox, and Safari.
Join HFMA today and enjoy: