I happen to report to our CFO. Learned a lot about finances from him. Minute I open my mouth about clinical info, healthcare insurance issues, his eyes glaze off and goes huh, slow down, explain simple terms. Comments that nurses are a dime a dozen retracted after my retort that CFO's are a dime a dozen too this days.
We each have our strengths and weaknesses, learning to talk to each other to see how nursing affects financials is important.
CFO recently made up P+L (Profit and loss) budget form for each of our branch managers to be able to play with and change #'s for homecare variables we track that affect bottom line: # admissions, # recerts, # therapy visits projected, # patients with less than 5 visits, % referrals converted to homecare admissions etc. He listed impact change in # would affect bottom line.
At our clinical managers meeting yesterday, several mgrs stated couldn't believe how few # changes would significantly impact $$$ and profit/loss to agency. Each branch can now decide what # target they want for each indicator.
Cl Mgrs complained didn't have enough staff to be able to admit patients to homecare timely. Finance Dept said they had enough staff--I told em they were looking at wrong #'s. So CFO devised formula to base # staff on:
Referrals accepted month / FTE Staff minus staff in training, on medical leave or leaving homecare (rare) = # actual staff needed per branch per discipline
Since that occurred, found 2 branches UNDER by 2-3 FTE positions. HR and Finance now run this report every 2 weeks to make sure adequate staff hired.
This is an example how working cooperatively and understanding financial picture can help manage facilities $$$ wisely AND be able to generate more business too!