The Advisory Board Company: Strategy and Operations Research - Financial Leadership Council

Financial Leadership Council

The Financial Leadership Council supports chief financial officers and finance departments in setting and executing finance strategy across the broader hospital and health system enterprises. Accomplished primarily through the provision of strategy reports and finance briefings, the Council profiles the best thinking and analysis from across health care and out of industry, written expressly for the CFO. Broader focus areas for Council research efforts include improving revenue cycle performance, managing supply and labor costs, adopting a posture of disciplined growth, and financing future capital needs.

Sample of Recent Research

Prospering in the Coming Era of Price Transparency

There is no doubt the concept of price transparency is gaining traction in the health care industry. As a result, hospitals face the multifaceted challenge of protecting their autonomy, responding to the transparency demanded by state legislatures, and identifying strategies to protect margins in the face of changing consumer behavior.

  • Capitalizing on elastic demand
  • Re-inventing the patient financial experience

Breakthrough Denials Performance: Maximizing Revenue Capture in an Era of Payer Cost Containment

As payers tighten their controls over claims adjudication, denials management once again rises to the top of the finance executive’s agenda. In partnership with the Advisory Board’s Revenue Cycle Compass program, the Financial Leadership Council analyzed a revenue cycle database of over 100 participating hospitals to identify trouble spots and assess opportunities for members.

  • Improving denial reporting and analysis
  • Preventing denials on the front-end through improved eligibility and billing practices

Managing Staffing Expenditures: The CFO’s Role in Containing Labor Costs and Promoting Productivity

In an era of rising patient demand and labor shortages, hospitals and health systems are challenged with ensuring that labor costs rise at a rate commensurate with—or preferably lower than—the revenue growth rate. This publication aims to help members assess the opportunity for maximizing their investment in staff, suggesting a variety of tactics to effect change in multiple areas.

  • Controlling hourly direct labor costs
  • Speeding inpatient admissions

Prioritizing Capital Investments: Ensuring a Sustainable Return Across Time

The escalating demand for capital is exacerbating an age-old challenge for CFOs and the broader leadership team, forcing choices among competing capital projects. This study provides best practices to help hospitals and health systems ensure that decisions about capital spending enhance the organization’s ability to finance its future needs.

  • Implementing a policy of forced capital prioritization
  • Establishing a risk-adjusted ROI threshold for new investments

Example of Tools and Resources for Members

Online Best Practice Compendiums

Easily searchable collections of hospital and health system best practices featured in past Advisory Board research presentations:

  • Revenue Cycle Management
  • Self-Pay
  • Supply Cost Management
  • Capital and Asset Productivity

Financial Benchmarking Programs

  • Revenue Cycle
  • Supply Chain
  • Capital Allocation

Online Tools and Calculators

  • MS-DRG Rebasing Calculator