By Denise Bisogno, Business Development Manager

In recent years, the role of the Healthcare CFO has expanded significantly, taking on new responsibilities and challenges. The need to fund and leverage new technologies, such as AI and automation-driven solutions, has become crucial for driving both financial and operational value. CFOs now play an integral role in making decisions about which technological advancements to fund, including the implementation of better ERP systems, all aimed at ensuring competitive strength.

The ongoing challenge of finding the best strategies to significantly cut costs is now coupled with the need to generate new resources. CFOs are tasked with creating new streams of funding to support upgraded patient care models. However, the surplus dollars of yesterday’s finance strategy seem to simply vanish, leaving healthcare leaders to ask:

How do you successfully:

• Identify hidden profit drains rapidly and drill deeper?
• Achieve better results through more valuable initiatives?
• Accelerate outcomes and increase savings across the board?

The healthcare financial landscape has undeniably changed. Finance leaders must now navigate a more complex playing field, adapting to swift changes and pivoting with ease to provide resources for innovative financial and patient-centric solutions. There’s a new threshold to reach in order to stay ahead of the curve, but how do you allocate dollars that don’t grow as fast as these new and increasing needs?

Controlling Healthcare Costs with Super-Human Laser Focus

Reducing labor and supply costs by renegotiating contracts is a solid target. A micro-focused analysis is essential because the devil is in the details. An independent set of eyes can offer a new vantage point on true spending data, especially the hidden, granular details. Exposing “dark data” is crucial. Next-level data analytics can provide deep insights into the purchased services space, uncovering hidden savings.

But the next issue is bandwidth—do you have the time and talent needed to perform such deep-dive analyses? Many CFOs admit they are postponing these projects while prioritizing other financial challenges. Before long, it’s the third quarter, and reducing significant spending is still just talk. Yet, substantial hidden dollars are waiting to be uncovered, starting with the purchased services spend. Did you know that purchased services account for up to 50% of a hospital’s non-labor spending?

Thoroughly reviewing all contracts for higher performance and compliance, and holding GPOs accountable, requires a finely tuned, automated solution. An effectively managed contract ensures pricing is honored, terms and conditions are maintained, and discounts and rebates are received promptly to support ongoing cost savings. However, this requires time, talent, and planning—resources that are often scarce.

Evolving your spend data analytics intelligence also gives you control to predict future savings opportunities and strengthens your ability to present ongoing savings. Surprisingly, only 10% of collected data is analyzed and put to use, while 90% remains “dark data,” a significant roadblock to efficiency and savings.

According to a report from Sage Growth Partners earlier this year, 46% of C-Suite leaders said reducing costs and improving efficiency was their number one priority. But where do you turn to get it right? Enlisting automated, proven solutions will ensure a strong trajectory for achieving comprehensive value. The good news is that these solutions are available now, with no upfront costs, and ready to perform the “heavy lifting” while you manage day-to-day financial operations.

So, what do you have to lose? Or better yet, what can you stand to gain?

Future Focus and Intelligent Solutions

CFOs are achieving deeper impacts by using targeted strategies focused on their purchased services space. By making smarter purchased services decisions and incorporating automated tools that deliver results instantly, hospitals and health systems can provide better care, improve efficiency, minimize waste, and increase profitability.

The key is to choose solutions that:

• Require little to no startup costs.
• Have no subscriptions to purchase.
• Can prove they generate and drive results instantly.

Dedicated focus on all purchased services categories is a goldmine for healthcare organizations, allowing them to finish Q4 strong and start 2025 with a solid, fail-proof plan for exceptional savings and improved control capabilities. The race to the 2024 finish line is on, and finding the strongest, most exceptional tools with the highest ROI and least risk is top of mind for healthcare leaders.

One thing is certain: the winds of change in healthcare can rise without warning. What is your plan to finish strong in Q4? How will you complete your value story for 2024? Will you be prepared and equipped to meet January 2025 with a solid strategy guaranteed to optimize performance from Q1?

Proactive vs. reactive—that’s the difference between good and great. Maintaining financial stability in today’s healthcare environment requires immediate engagement with futuristic, intelligent solutions to gain a competitive advantage.

SpendMend has developed a carefully crafted, comprehensive plan—a proven end-to-end engagement that addresses the root causes of cost inefficiencies. With out-of-the-box strategies designed to provide ongoing support, SpendMend helps guide you past roadblocks, increase value, and ensure operational and financial success at the highest level in the least amount of time.