Both the CFO and the CEO are major contributors to the function of a hospital or other healthcare setting. While some of their responsibilities are similar, there are also many notable differences.
What is a Healthcare Chief Financial Officer or CFO?
A healthcare chief financial officer is the person who ensures that a hospital or hospital systems runs in the most cost effective manner and they are responsible for managing all financial risks for the organization. They are charged with handling most planning finances and management of records. Often a CFO will report the financial status of the hospital to the CEO and the board of directors. The CFO supervises the finance unit and is the chief financial spokesperson for the organization. They typically will handle budgets, negotiate new contracts with vendors, figure out how to save money in the organization, and choose top executives for key hospital roles.
Best Degree Option to Become a Hospital CFO?
There are a variety of master’s degrees available to prepare for a career as a hospital CFO with the common degrees being accounting, finance, and health administration. Some CFO’s are certified public accountants (CPA) with a number of years of experience dealing with the financial aspects of organizations and corporations.
How Much Experience is Required to Become a CFO?
For those pursuing CFO level positions, they can expect the competition to be fierce. Experience, skills, and education are the most important things that hospitals and other employers look for in a chief financial officer. Getting an advanced degree is essential but for a career as a successful CFO, often those that have years of learning experiences from various managerial and executive positions are at a significant advantage. For a career as a hospital CFO position candidates must have skills in the technical aspects of finance, accounting, and personnel management.
How Much Money Can I Expect to Make as a Healthcare CFO?
According to the US Bureau of Labor Statistics the mean average salary for CFO’s in Healthcare for 2014 was $109,740 per year.
What is a Healthcare Chief Executive Officer or CEO?
Chief executive officers or CEOs (other titles include executive director, president, and vice president) provide the direction for companies and organizations. CEOs manage hospitals operations, formulate policies, and safeguard that organizational goals are met. Hospital CEOs serve as leaders who will communicate with the community and serve as leaders in developing strategic vision and policies for the hospital. They work with and direct the work of other top executives and most often report to a board of directors. A hospital CEO often works alongside a team including the CNO (Chief Nursing Officer), CMO (Chief Medical Officer), COO (Chief Operating Officer) and the CFO (Chief Financial Officer).
Best Degree to Become a Hospital CEO?
To become a hospital or healthcare CEO it is traditional have a medical background and hold a minimum of a master’s degree in either hospital or healthcare administration. Most positions as CEO require a minimum of 8-10 years of experience in administrative, management and healthcare positions. The hospital CEO is the highest-ranking official in the hospital organization, and he or she also has the toughest job.
What can I expect to make as a Healthcare CEO?
General management salaries at hospitals averaged $104,210 per year however according to the US Bureau of Labor Statistics the CEO earned an average of $195,460.