Balancing Care and Commercial Success in the Health Care Sector in Australia

Healthcare leaders face a fundamental tension: delivering quality care while achieving commercial viability. Success requires embracing both imperatives without sacrificing either.

The False Dichotomy

The assumption that care quality and financial performance are opposing forces is flawed. Sustainable organizations deliver better care because they can invest in: - Quality staff and training - Modern equipment and facilities - Innovation and improvement - Research and development

Integrating Care and Commerce

1. Outcome-Based Thinking Shift focus from volume to value. Better outcomes often correlate with lower costs through reduced readmissions, complications, and rework.

2. Efficient Care Delivery Eliminate waste that doesn't add patient value. Lean principles adapted for healthcare can improve both quality and cost.

3. Strategic Service Development Focus on services where you can deliver excellent outcomes sustainably. Not every service needs to be offered.

4. Transparent Communication Help teams understand the relationship between financial sustainability and care quality.

Financial Metrics That Matter

• Cost per episode of care
• Outcome-adjusted efficiency
• Patient satisfaction with value received
• Clinical quality indicators linked to financial results

Leadership Imperatives

CFOs in healthcare must: - Speak both clinical and financial languages - Build collaborative relationships with clinical leaders - Champion investments that improve outcomes - Make financial sustainability visible and understood

The best healthcare organizations prove that quality and sustainability reinforce each other.