Finance is a shared language that all businesses speak, especially those engaged in commercial relations.
Against this backdrop, today's Chief Medical Financial Officer (CFO) who was previously primarily responsible for budget management, compliance and financial reporting, must also act as a strategic business leader and translator. .
One of the most unexpected but significant changes in this role is the increase in CFOs involved in business-to-business (B2B) sales. In an era of rising costs, complex reimbursement models and value-based care, healthcare CFOs are becoming important factors in building partnerships, negotiating contracts, and ensuring the financial sustainability of their organizations.
“The complexity of doing value-based care is deeply rooted in financial decision-making,” he says in a conversation in Pymnts executive series, “a day in the life of a CFO.” “As time goes by, CFOs are hopeful that they will be more involved in sales conversations. There will probably be discussions between the healthcare providers and CFOs.”
Flakne added that he believes financial leaders are in their own position to drive business development as they understand both cost structure and market needs.
“Traditionally, the role of CFOs has been very accounting-focused. I made sure the book is straight and costs are managed,” he said. “It will always be table stakes. But in the future, CFOs will play a more direct role in business development and building financial arrangements.”
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In today's 21st century landscape, the financial health of healthcare organizations is not just about the income of patients and members. Modern CFOs are increasingly focused on diversifying revenue streams by ensuring partnerships with insurers, employers, technology vendors and more ecosystem stakeholders. These transactions require the CFO to take on the selling mindset. Building relationships, pitching the value of the organization's services, negotiating favorable terms.
In Health included, Flakne emphasized that it is driving its financial strategy with a focus on growth through strategic sales and partnerships. His approach focuses on three key areas: operational excellence, reach and service expansion, and financing as a sales function.
“You have to be really good at what you're doing,” he said. “If not, you won't be able to get the privilege of doing more for your industry, your customers, or most importantly, your members.”
Flakne sees Navigation and Virtual Care as two important pillars of the Health product that is included, but he thinks beyond them.
“We know that there is a lot in health care, from hospital surgery to home care,” he said. “The ability to bring in more health services included in our members' lives is something we are actively doing today.”
But it is the impact of financial teams that not only can you understand the financial model, but it is also the impact of financial teams that Flakne can effectively communicate an organization's value proposition to corporate decision makers who are seeing its biggest impact.
“Our financial background provides a common language and structure that permeates various functions,” he said. “That's how we can help shape the overall decisions that impact the entire company. We serve a wide population and engage with commercial buyers. CFOs are , will become a key player in shaping the financial structure that will ensure successful value-based care on a large scale.”
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To effectively balance the growing roles of traditional financial surveillance and strategic business responsibility, CFOs are increasingly embracing and utilizing emerging technologies such as artificial intelligence (AI) and automation.
“AI has the unique ability to listen, track and handle administrative tasks at all times,” says Flakne. “It's important in healthcare, but it's also important in finance.”
He envisions AI will play a key role in streamlining financial operations, eliminating repetitive tasks, and enabling financial teams to focus on strategic decision-making.
“It's about working at the top of our license,” Facne said. “Using AI and automation, going through a workload that takes so much time, freeing up space for reflection, insight and real business impact.”
As healthcare companies develop more sophisticated financial models, CFOs need to act as business advisors rather than just financial managers.
“We need a finance team that understands the mission of healthcare and keeps members first,” Flakne says. “It's easy to spin too far into dollars and cents, but at the end of the day, this is about people who need care.”
“The more we as financial leaders understand clinically what is happening, the more we can shape our business decisions,” he added. “We won't become physicians, but we need to integrate clinical insights into our financial model.”
