CFO Linda Hoff: Balancing Meriter Hospital and HMO Duties
Linda Hoff is not your typical hospital CFO, and she very well could be the model of the new-age hospital CFO.
Ms. Hoff serves as CFO of Meriter Hospital in Madison, Wis., as well as the parent organization Meriter Health Services. She also oversees the Physicians Plus Insurance Corporation, which is a for-profit HMO that is 67 percent owned by MHS.
Moody's Investors Service recently affirmed Meriter Hospital's A1 rating and said MHS has many positive trends. Meriter Hospital represents roughly 52 percent of MHS' total operating revenue, while the HMO accounts for a majority of the remaining revenue. Moody's analysts said Ms. Hoff and the management team have built up a solid balance sheet, with 171 days cash on hand at the end of fiscal year 2011, and they also have favorable demographics in the Madison area.
Bundled payments are a hot topic, and Ms. Hoff believes if done right, bundled payments can finally establish accountability for a patient's episode of care. "The ultimate bundled payment is the economic alignment vehicle of the comprehensive care payment model involving a single risk-adjusted payment (capitation) for the full range of healthcare services needed by a group of people for a fixed period of time," Ms. Hoff said in October 2011. "The benefits associated with this model are incentives to deliver care efficiently and incentives for medical professionals to collaborate. The model provides the flexibility for medical professionals to innovate the design of care, and they are rewarded for maximizing health."
Ms. Hoff, a certified public accountant, first joined MHS in January 1995 as the director of internal audit. She rose to her current position in June 2005 after serving as director of contracting and vice president of financial operations. Prior to MHS, Ms. Hoff served as a manager at a major accounting firm.
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