You’ve read it here, and you’ve heard me say it repeatedly: supply chain (and healthcare transportation) should not be viewed through a transactional lens because done right, it is a strategic asset.
It was very gratifying, therefore, to read the same sentiment from John Kupice, CEO of H-Source, in Healthcare Finance’s 7 supply chain predictions for healthcare in 2019: “Supply chain is viewed today as a transactional model. That view needs to shift to one of strategy.”
I couldn’t agree more.
I have noticed recently a trend of healthcare CFOs transitioning from the stereotype of a behind-the-scenes number cruncher to key managers who are very involved in daily operations and strategic planning. A recent article in Healthcare Finance News highlights this point.
Today’s CFOs still have an eye for numbers, but their roles are greatly expanded. “They are on the front lines, working with the CEO to develop a strategic plan for their organization, and … to identify growth opportunities,” according to Paul Esselman of Cejka Executive Search.
Hospital and health system consolidations have been on the rise. The most recent statistics available indicated that there were 90 deals targeting 156 hospitals in 2011, according to “The Health Care Services Acquisition Report”, 18th Edition, by Irving Levin Associates. When the statistics for 2012 are finally tallied, an even higher number is expected.
This surge in consolidation is partially driven by provider responses to both the challenges and opportunities created by national and state healthcare reform. But mergers and consolidation also bring complex business considerations. If you add state and federal laws that can further complicate a transaction, healthcare leaders can find themselves facing even more potential obstacles.