Majority expect
economic recovery
SURVEY SNAPSHOT
When the country turned to healthcare in a period of great need, leaders moved forward with haste to prioritize care, cash, coordination and creativity. From transforming to manage a surge, to restoring patient confidence, CFOs have made clear that their 2021 vision will be more collaborative, connective and patient-centric than ever before.
2021 Healthcare CFO Outlook Survey
The Future of Care, Accelerated
Revenue will return, but liquidity is a challenge for now
Outside capital needs
are nearly universal
Partnerships and consolidation are on the rise
The pandemic accelerated digital transformation and product innovation
Restoring patient confidence
is paramount
Transformation Tracks
For most healthcare organizations, transforming to meet the future needs
of care will follow at least one of these paths: partnerships, product and practice optimization, and enhanced omnichannel patient experience.
TOP STRATEGIES FOR 2021
#1
Digital transformation
Product or service expansions
#2
HEALTHCARE CFOs PLAN TO:
Transform
operating models
35%
Acquire physician practices
31%
Join a clinically integrated network
30%
Merge with another organization
28%
The pandemic brought a financial cliff to many healthcare organizations. It also created new clarity on the importance of liquidity and what are truly essential services and operational costs.
Resilience Through Distress
44% say liquidity
will be a challenge
in 2021
CASH
34% will pursue
a strategic
cost reduction
COSTS
90% plan to seek
outside capital
CAPITAL
In context of a global pandemic, healthcare organizations’ risk profile has evolved. The future of care will require new focus on patient experience, regulatory compliance and supply chain agility.
restoring
patient confidence
57%
Risk in New Perspective
complying with Health Price Transparency Act
50%
healthcare
reform policy
43%
TOP EMERGING RISKS FOR 2021
Methodology
Survey Respondents
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The 2021 BDO Healthcare CFO Outlook Survey polled 100 CFOs at hospitals, physician offices, long-term and post-acute care, home health, hospice, and outpatient and ambulatory service providers with revenues ranging from $250 million to $3 billion in September 2020. The survey was conducted by Rabin Research Company, an independent marketing research firm, using Op4G’s panel of executives.
.
Methodology
ANNUAL REVENUE
Survey Respondents
Types of Healthcare Organizations
Geographic expansion
#3
Enter into a joint venture
24%
Sell to another organization
20%
Acquire another organization
17%
34% will look to optimize their real estate footprint
CONSOLIDATION
BDO'S TAKE
2021 will be all about making the most of newly-formed, high-value healthcare partnerships. From seeking to address financial distress, to building up scale, to capitalizing on innovation and research, strategic and financial deals will accelerate the path to better care for patients and continued financial recovery.
BDO'S TAKE
While the pandemic exacerbated some areas of distress, it’s important to look critically at issues that may continue to present problems when the crisis abates. Unwieldy administrative structures, high reliance on Medicaid funding and lack of affiliation with a healthcare system should be addressed as part of any reorganization strategy.
BDO'S TAKE
Restoring patient confidence and enhancing the patient experience have never been more challenging or more critical. But in some ways, COVID-19 has leveled the playing field. There’s new opportunity for any organization to secure competitor advantage by investing in patient satisfaction.
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PROJECTIONS FOR REtail
Some retail segments experienced short-term demand spikes, while others suffered from demand droughts. In either case, unpredictable shifts in customer purchasing behavior have been a significant test of agility.
Responding to Demand Shifts
Aggressive cost management is necessary to enable digital investments
Whether surged or sank, demand changes pose challenges
Almost all retailers are tapping outside capital this year
Restructuring and reorganizations are on the rise
Nearly half of retailers are expanding product or service offerings
SURVEY SNAPSHOT
Extraordinary times call for extraordinary measures. For retailers, to be resilient is to be radical: big ideas and bold moves on tight timelines. Even amid COVID-19 pressures, some retail CFOs are accelerating digital transformation and doubling down on innovation. Those taking the slow road have a steeper climb to recovery.
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2021 Retail CFO Outlook Survey
Radical Resilience
Methodology
Survey Respondents
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BDO'S TAKE
Regardless of category, the challenge moving forward for retailers is sorting out the short-term effects of the pandemic, from the long-term shifts in shopping behaviors and demand patterns.
The 2021 BDO Retail CFO Outlook Survey polled 100 retail industry CFOs with revenues ranging from $250 million to $3 billion in September 2020. The survey was conducted by Rabin Research Company, an independent marketing research firm, using Op4G’s panel of executives.
Methodology
ANNUAL REVENUE
RETAIL SEGMENT
Survey Respondents
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61% expect economic recovery this year
BDO'S TAKE
The crisis settled any lingering doubts that the future of retail is digital. This is why, despite ongoing liquidity and cash flow challenges, investing in technology tops the list of retailers’ business priorities for 2021. Therefore, aggressive cost management will remain a priority in order to make these investments.
For many, radical change means overhauling their business’ foundations: from digital capabilities and business models, to capital structure and financial models, to organizational architecture and processes.
Rebuilding the Foundation
of oil and gas CFOs expect capital access to increase
44%
CAPITAL PROJECTIONS FOR 2021
Top Sources of Capital for 2021
BDO'S TAKE
To keep investor interests high, energy companies must showcase their profitability and potential. To do so, they will need to continue to cut costs, boost operational efficiencies and demonstrate an ability to ensure continuity and manage any future fluctuations in demand.
In 2021, capital access will be vital in determining which companies can execute on their strategic plans. Fortunately, energy CFOs are looking to a variety of sources to secure the cashflow needed to forge ahead.
Reclaiming Capital Access
Digital transformation
#1
Digital transformation
#1
Transform
operating models
35%
Acquire physician practices
31%
Join a clinically integrated network
30%
Merge with another organization
28%
Enter into a joint venture
24%
Sell to another organization
20%
Acquire another organization
17%
44% say liquidity
will be a challenge
in 2021
CASH
34% will pursue
a strategic
cost reduction
COSTS
90% plan to seek
outside capital
CAPITAL
34% will look to optimize their real estate footprint
CONSOLIDATION
restoring
patient confidence
57%
complying with Health Price Transparency Act
50%
healthcare
reform policy
43%
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