Surviving the Squeeze: Financial Challenges & Opportunities in Today's Healthcare

The podcast features Thad Calabrese, Associate Professor of Public and Non-profit Financial Management at NYU's Wagner School. He has a wealth of experience in financial management theories and techniques for public sector, public services, and healthcare organizations.Thad Calabrese's professional background includes serving on the board for the Journal of Public Administration Research in Theory and Public Budgeting and Finance. He was also with the New York City Office of Management and Budget, specializing in tax policy.Discussing financial management in healthcare, both hosts stress the importance of generating a margin, regardless of whether an organization is for-profit or not-for-profit. If an institution fails to drive a margin, it loses the ability to control its destiny.Calabrese points out the financial challenges faced by healthcare institutions, especially with the aftermath of the pandemic. While public programs and resources offered some relief, it only delayed the need for difficult budget decisions, often leading to a "kick the can down the road" scenario.Other challenges discussed include shortages of key personnel, workforce burnout, supply issues, increased cost of energy, and tightening of credit. These stressors are causing an explosion in operating expenses for healthcare organizations.