Enabling informed decision making
Kaufman Hall partners with healthcare leaders to align financial goals with strategic missions, ensuring there’s enough capital capacity to support strategic plans within an appropriate credit and risk context. We bring deep knowledge of the healthcare marketplace, rigorous financial analysis, proven frameworks, and an experienced team to help you identify future financial risks, plan effective responses, and stay flexible in the ever-changing healthcare market.
As healthcare organizations confront a fast-changing environment and numerous strategic opportunities, the need for robust long-range financial planning is more critical than ever. Our consultants equip you with the skills and tools to more effectively set targets, track progress toward goals, revise strategies as needed, and achieve success. A solid financial plan provides the strategic backbone for a healthcare organization and it:
- Aligns the organization’s strategic mission and vision with measurable financial objectives
- Establishes quantifiable and specific targets for operating and balance sheet performance ensuring they support the organization’s strategies and investment needs
- Provides an objective basis for management and Board leadership to assess the financial feasibility of strategic initiatives
- Quantifies future financial risks, considers alternative scenarios, and outlines practical responses to anticipated or unforeseen changes
- Empowers the organization to be proactive and adaptable in a dynamic and complex environment
Integrated Strategic Financial Planning
Organizational financial performance must be sufficient to meet the cash flow requirements of the strategic plan and maintain or improve the financial integrity of the organization, within an appropriate credit-and-risk context.
1) Compete effectively through aggressive investment of capital and operating dollars, BUT
2) Respect the fiduciary role of management and the board to maintain the long-term financial integrity of a community asset
Our approach includes:
- Evaluating credit and capital position
- Identifying and assessing key funding sources
- Developing robust, statistically driven financial projections incorporating key strategies
- Quantifying debt and capital capacity
- Identifying key risks and opportunities through scenario and sensitivity analysis
- Developing a comprehensive financial road map
Capital Planning and Management Solutions
Our team works with clients to design and implement a comprehensive process to effectively deploy capital.
Our approach includes:
- Assessing capital needs
- Analyzing current processes and identify areas of opportunity
- Creating a standard process for evaluating and approving capital projects
- Socializing and implementing new processes
- Establishing effective integrated decision-making and supporting change management
- Tracking and monitoring capital spending and progress
Process Design and Implementation
Our team believes that successful integrated decision-making requires a clear linkage between strategic, operational, and financial planning activities. We work with our clients to establish effective processes to plan for and manage the integrated capital management cycle.
Business Case and Project ROI Analysis
Our team works with clients to bring financial analytics and rigor to strategic and operational endeavors, ensuring they align with the organization’s financial goals and targets.
Sample initiatives supported through Kaufman Hall analytics include major capital projects, ambulatory strategies, business evaluation, service line planning, performance improvement initiatives, value-based care and payor strategies.
Our approach includes:
- Conducting financial analysis on discrete projects
- Developing financial projections for discrete projects
- Calculating project return on investment across traditional methods including NPV, IRR, and payback period
- Analyzing the impact of projects on the organization’s financial profile
Strategic Partnership and Synergies Analytics
Our team works with organizations to evaluate potential partnerships to determine if they are financially beneficial or detrimental
Our approach includes:
- Assessing independent and combined credit position
- Developing independent and combined financial projections
- Quantifying revenue, expense, and balance sheet synergies
- Quantifying partnership operating and capital investments
- Informing the business case and partnership financial rationale
We’ve collaborated with more than 1,000 healthcare organizations of all sizes and types, help define critical measures of financial success, evaluate the affordability of the strategic plan, and quantify how the portfolio of associated initiatives will affect operating performance, the balance sheet and future capital capacity by breaking down potential risks, exploring scenarios, and preparing for changes, expected or not.
Tackling today’s policy and regulatory uncertainty: The case for financial scenario planning
Gist Weekly: March 21, 2025
National Hospital Flash Report: January 2025 Data
