Business Planning—also known as Strategic Financial Planning— is the lifeblood of any organization. Leaders need to generate new ideas and use those visions to prepare for future growth.
But unfortunately, as many healthcare organizations have learned the hard way, just having a vision is not enough to insure the continued survival, growth, and success of your organization.
To make your vision real, you need strategic financial planning.
Strategic Financial Planning is the process of putting numbers to your plans.
Its purpose is to demonstrate that your vision is not just strategically wise, but financially feasible. That’s why it’s critically important for your practice’s success.
What It Takes to Do Strategic Financial Planning Right
The minimum requirement for successful strategic financial planning is deep and broad healthcare industry knowledge.
With 25+ years of industry experience—including CFO leadership at two health systems—Jane Kaye is able to successfully engage with these strategic financial planning challenges:
Projecting Likely Revenue: Revenue projections are key to the financial feasibility of any healthcare organization’s proposed strategy. Multiple factors will influence these projections, and it takes years of hands-on experience to accurately anticipate changes in the many variables—including patient populations, volume, insurance coverage, or government regulations—that impact payment rates.
A growth or acquisition strategy that seems solid today may quickly implode if even one of these variables shifts significantly. That’s why a solid industry background, and the ability to maintain an objective viewpoint, are essential for strategic financial planning.
Estimating Expenses: Similarly, you need to know a lot about how healthcare organizations operate to estimate expenses. It’s important to understand different categories of expenses and, even more importantly, to distinguish the cost drivers that influence individual expenditures.
Some expenses are fixed costs, and exist separate from volume. Some are variable, and they will increase and decrease as volume changes; most, if not all of these expenses, behave in ways that are unique to healthcare.
Anticipating Market Segment Changes: Finally, you need not just industry-specific knowledge, but a deep understanding of how specific healthcare market segments operate.
To generate this insight, Jane partners with a wide range of subject matter experts who bring hands-on expertise of each of her client’s is specific market segments.
The result is a team of seasoned and creative experts who are ideally positioned to help make your vision a reality.
Contact us today to learn more about how Strategic Financial Planning will benefit your practice.
Jane understood the many different aspects of the project and synthesized them into a coherent financial plan, without which no decision could have been reached.