Amid the ongoing challenges across healthcare, Todd Conklin, CFO of Providence, R.I.-Care New England, is keeping a close eye on potential federal policy changes like Medicaid cuts.
“I work in a geographic area, a healthcare market with a disproportionately higher share of the Medicaid population,” Mr. Conklin said during a Becker’s CFO+Revenue Cycle Podcast episode. “Medicaid reimbursement is certainly relevant to my health system and relevant to my community.”
Care New England’s $1.4 billion health system comprises three hospitals: Providence-based Butler Hospital, Warwick, R.I.-based Kent hospital and the Providence-based Women and Infants Hospital, according to its website. It also offers behavioral and home health services.
Mr. Conklin said the magnitude of potential Medicaid cuts being discussed would be “catastrophic” for the healthcare industry if implemented, specifically for health systems like Care New England that have higher shares of Medicaid populations.
Despite industrywide uncertainties, Mr. Conklin highlighted two years of financial success at Care New England. In November 2024, Mr. Conklin told Becker’s the system achieved a 1% operating margin in fiscal 2024, with a goal of hitting 1.25% in fiscal 2025.
“Our bond-grading outlook has improved, which means we’re a bit more creditworthy, and we’re able to invest in programs [and to] invest in facilities and equipment,” he said. “We’ve got … productive partnerships within the state of Rhode Island, with some of our business partners and some with other health systems within the Rhode Island market.”
Mr Conklin also highlighted the importance for hospital and health system financial leaders to remain mission-focused.
“We are not in the finance business, we are in the healthcare business,” he said. “If I can commit a very large percent of my time to supporting our clinical teams [and] our operational teams, I can have a high degree of confidence that we will achieve success within our organizations.”
