You’ve recently assumed the CFO role at Wake Forest University Baptist Medical Center. Can you talk about some of your plans?
As the first CFO of the Medical Center, a key focus area is to develop integrated finance systems and processes across the clinical, education and research elements of the organization. One of my priorities is to develop a long range financial plan that is fully integrated with the strategic plan we’re developing. This is an organization with a strong balance sheet, but we need to ensure our debt and investments are structured in a way to mitigate volatility. Another major focus area is assessing operational risks and opportunities to strengthen financial performance, and identifying better tools, processes and information to support effective management. Building relationships throughout the organization, and strengthening the finance team to support the medical center, are also priorities.
This has been a tough year for hospitals financially. What are some issues that are going to remain challenging?
This is absolutely a new world due to the economic crisis and healthcare reform. Increased uncertainty and financial pressures will continue into the foreseeable future. Operationally, there will be increased pressure on payment rates, regardless of the outcome of reform legislation, due to federal and state budget problems and the substantial shift of financial obligation to patients. Like many organizations, we face competitive pressures. The debt markets have stabilized significantly, but there is still great uncertainty. We have an AA- bond rating, but there is still uncertainty about what happens to interest rates. Similarly, like other organizations, we remain vulnerable to another potential drop in equity markets. As a consequence we remain very cautious relative to our capital plans.
Edward Chadwick is chief financial officer at Wake Forest Baptist University Medical Center (Winston-Salem, N.C.)