Healthcare Formal Capital Allocation

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.

Healthcare Fundraising for Nonprofits

With a bachelor's degree in accounting, Brian Derrick has served as a leader in the financial sector at several healthcare organizations across Pennsylvania. Brian Derrick was the CFO at Pennsylvania-based Einstein Healthcare Network, responsible for raising $500 million in capital through various strategies and improving the revenue cycle.

Healthcare nonprofits such as the Einstein Healthcare Network typically have a charitable arm or office, to which the community and corporations can donate and help the organization's mission. These nonprofits can raise money in several ways, and there are strategies they can use to increase donations, such as implementing grateful patient programs. These programs are dedicated to offering engagement opportunities to former and current patients who may be willing to donate to help other people, especially after they have been discharged.

Healthcare nonprofits can also seek a partnership with corporations that have a robust philanthropic history. In exchange for positive publicity and visibility, these corporations can give philanthropic support to the healthcare nonprofit by sponsoring a fundraising event or investing in a campaign to raise funds for a specific healthcare need, such as hiring more hospital staff.

Hosting well-planned fundraising events is another excellent way to generate public awareness, attract new donors, and interact with the community. Some tips for such events are to use technology to promote digital donation methods and manage details with fundraising event software, as well as branding the event with the organization's logos and merchandise.