Cheryl Wathen has spent more than 36 years at Deaconess Health, and the last 16 as its CFO. In that time, she has watched the Evansville, Ind.-based system grow from a single hospital with $132 million in annual revenue to a system of 23 owned and affiliated hospitals with $3.3 billion in revenue.
In late June, Ms. Wathen shared plans to retire as system senior vice president and CFO. Alice Rigdon will succeed her in fall 2026.
Becker’s connected with Ms. Wathen to discuss her time at Deaconess, reflection on its growth, the largest financial challenges navigated along the way and her hopes for the future of a system she helped build.
Editor’s note: Responses were lightly edited for length and clarity.
Question: You spent 36 years at Deaconess and 16 as CFO. Looking back across that time, what accomplishment are you most proud of, and why does it stand out above the rest?
Cheryl Wathen: Healthcare is an industry that requires significant infrastructure, equipment and technology but also human capital. When I came to Deaconess in 1990, we were a one-hospital organization with no joint ventures, $132 million in revenue, limited physician employment and 1,900 FTEs. Today, we are a system with 12 owned hospitals, 11 affiliate hospitals, more than 275 outpatient sites, multiple joint ventures, $3.3 billion in revenue and more than 15,000 FTEs of which approximately 1,300 are employed providers. I am very proud to have been part of that growth, but those results are a team effort. I work with a great team of professionals with a tremendous amount of experience and commitment to the communities we serve. With a focus on quality and fiscal responsibility, Deaconess has been able to grow and keep care local in a very challenging healthcare climate. That’s what I’m the most proud of.
Q: You mentioned the people you’ve hired and mentored as your proudest legacy. What does it take to build that kind of bench strength on a finance team? What advice would you give other CFOs trying to do the same?
CW: To build a strong bench, it takes time and immersion to excel in the technical aspects of the job, but the non-technical aspects are just as important. Leaders must be open and willing to change, and they must be willing to lead others through change. In a growing organization, that is often the toughest challenge.
My advice is to hire for both attitude and talent. CFOs should guide and delegate, but they should provide a safety net which allows for failure and support. Leaders are reluctant to take risks if they are fearful of retribution for failure. Some of the best lessons I’ve learned in my career were a result of less-than-optimal decisions. When failure occurs, one must dust themselves off and try something different.
Q: Healthcare finance has changed dramatically over your tenure, reimbursement pressure, technology, consolidation. What was the biggest shift you had to navigate and how did you address it?
CW: There have always been challenges in the industry and most have revolved around changes in reimbursement methodology in the midst of rising costs. I think healthcare in this country is at a crossroads now. It’s the perfect storm and unlike anything we have seen in the past. With aging of the population (baby boomers) and the reduction in Medicaid rolls, hospitals are seeing significant strains to their revenue streams amid high demand for their services and higher costs. A health system’s response will determine what it looks like five years down the road or whether it’s even in existence. On the expense side, Deaconess is meeting these challenges through investment in technology, outsourcing (where it makes sense), systemness initiatives to drive consistency, eliminate care variation and reduce overhead costs as well as working with our physicians on supply usage and contract negotiation. On the revenue side, we are utilizing automation to help with access, growth and denial management.
Q: What’s your hope for where Deaconess goes from here? What would you most like to see for the system in the years ahead?
CW: The culture at Deaconess has always been both high tech and high touch. Patients don’t always recognize the technology piece, but they do understand and appreciate the compassion of their caregiver. As we grow, I don’t want us to ever forget our roots. I think our mission says it best. We want to advance the health and well-being of our community, with a compassionate and caring spirit. My hope is that we will continue to excel in our mission.
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