CFOs are feeling optimistic about the financial outlook, but there are three large challenges that will need to be navigated.
A majority (79%) of healthcare CFOs expect a revenue increase this year, yet 78% cited profitability as an area of improvement, according to a healthcare CFO outlook survey conducted by BDO.
While CFOs remain optimistic, BDO warns that healthcare organizations may face challenges in achieving higher revenue and profitability due to three main reasons: regulatory pressures, clawbacks of COVID-19 funding, and challenging bond and loan covenant agreements.
A look at the numbers
The survey, which included responses from 100 CFOs, found that 11% of respondents reported their organizations had violated bond and/or loan covenants in the past year, and 30% expressed concern about violating them in the future.
Furthermore, only 35% of healthcare organizations represented in the survey had more than 60 days cash on hand. This highlights the need for more strategic conversations around economic resilience, as identified by 44% of CFOs.
What’s the solution?
In response to these challenges, CFOs are shifting their strategies.
The survey found that 39% of CFOs are adjusting…
