Chief financial officers at hospitals across the United States are faced with many challenges due to the restrictions that the current state of the economy is putting on their budgets. At the recent Becker's Hospital Review Annual Meeting on May 17 in Chicago, a panel met to discuss how hospitals are running their budget. 

The panel consisted of three CFOs: John Zell, vice president of finance and CFO of OSF St. Joseph Medical Center in Bloomington, Illinois; Joe Guarracino, senior vice president and CFO of The Brooklyn Hospital Center in New York; and Henry Brown, CFO of Internal Fixation Systems. All three are well-versed on the challenges of associated with managing finances in a hospital setting, Becker's Hospital Review reported.

The three CFOs have all encountered their own set of problems at their medical facility. According to the news source, Zell is trying to boost his facility's physician employment strategy but because the hospital's budget is inconsistent, he is unable to see how revenues and costs will affect his hiring strategy.

Guarracino has also faced some problems at his hospital, the news source said. Five years ago, The Brooklyn Hospital Center emerged from bankruptcy, and, currently, the hospital is experiencing growth through a primary care base, finding access to capital and smart budgeting practices. By dealing with mostly Medicaid and Medicare patients, Guarracino has had to be creative with how he manages the hospital's budget.

Although Brown agrees with Zell and Guarracino's assessment that revenue is the most difficult factor to budget because of the changing reimbursement landscape – especially for Medicaid and Medicare patients – he said a successful budget is only as good as it is realistic. Hospitals that do not keep their costs and expected revenues in the realm of reality risk running into deficits and long-term problems.

The informational session showcased how these hospital CFOs struggle with some past and current budgeting problems. Many of the issues these hospital leaders discussed could potentially be addressed if they and their financial planning teams had access to financial forecasting tools and budgeting software. Many of these automated solutions not only help medical facilities create realistic long-term strategies, but they help them stay organized and on track with their financial goals.

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