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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