Possessing more than 35 years’ executive experience, Brian Derrick has served as CFO of Einstein Healthcare Network in Philadelphia, Pennsylvania, and Summa Health in Akron, Ohio. Currently residing in New Wilmington, Pennsylvania, Brian Derrick was also interim CFO of Jefferson Health System, where he implemented principles for business development and capital investment.
Capital allocation is an integral aspect of running a healthcare system. However, a 2021 study of 1,050 CFOs by Ernst & Young revealed that only 48 percent of healthcare provider executives had an established system to allocate capital. This hampers their ability to channel funds to projects that improve access to care such as telehealth.
It is critical that providers have formal processes for allocating capital. These should be objective, providing a rational framework for making decisions about where and how to allocate capital, while allowing for flexibility to meet emerging needs. Providers can work with an experienced healthcare consultant to develop a process that meets its unique requirements, aligns with its vision, and is objective but unencumbered by rigid rules.
But efficient capital allocation is more than just decision making. It also involves following up during implementation, verifying the correctness of assumptions made during the decision-making process, making adjustments where necessary, and collecting data for analysis. An experienced consultant will guide the organization to create a process that checks all boxes, enhancing overall capital allocation.
