Cost Reduction a Tough Job for CFO’s


In the modern healthcare system, we are looking for three main goals: better outcomes, lower costs, and increased access. As Greg Klugherz, CFO at Centracare Health in St. Cloud Minnesota states, “It seems like we’ve been trying to restrict cost increases forever.”

Hospital workers already feel the pressure of being understaffed, and there continues to be a battle between the “big three” goals of better outcomes, lower costs, with increased access for people.

How can hospitals begin to battle this ongoing issue? Greg Klugherz has decided to create a leadership team solely dedicated to cost reduction for Centracare Health. Klugherz again offers his advice for combating this issue, and wants CFO’s and financial management teams to, “Be ready to make your case and explain what you need from people to achieve your goals.”

It seems as though the days of hospitals being able to take advantage of high reimbursements, without having to worry about any potential long term financial consequences, is coming to an end. However, hospital administration in the past has not had to deal with this issue in this magnitude. So, as Klugherz suggests, it is time for the finance men and women to stand up and make their voices heard, so that everyone has a job next Monday.

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