Heathcare Costs Top CFO Concern

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Financial executives have many issues on their minds, but curbing rising healthcare costs and keeping other expenses in check top the list, a new survey from Robert Half Management Resources shows. Forty-seven percent of chief financial officers (CFOs) interviewed said the rising cost of healthcare is one of their three most pressing concerns. A nearly equal number cited controlling costs and improving profitability as a chief worry.

The survey was developed by Robert Half Management Resources, a provider of senior-level accounting and finance professionals. It was conducted by an independent research firm and is based on interviews with more than 1,400 CFOs from a stratified random sample of U.S. companies with 20 or more employees.

CFOs were asked, "Which of the following are your three biggest concerns as CFO?" Their responses*:

• Rising cost of healthcare, 47%
• Controlling costs and improving profitability, 46%
• Cash flow management and debt/equity financing, 33%
• Establishing and maintaining internal control over operations,24%
• Staff recruitment, training and retention, 23%
• Creating and maintaining a strong technology infrastructure, 23%
• Managing growth, 23%
• Managing financial statement preparation and auditor relations, 12%
• Mergers and acquisitions, 6%

*Multiple responses were allowed.

"A top priority for many firms in a slowly improving economy is a stepped-up focus on containing costs," said Paul McDonald, executive director of Robert Half Management Resources. "Of particular concern to companies are healthcare-related expenses and the possible impact of recent healthcare reform on their business."

McDonald added, "Although firms must closely monitor expenses, they also need to be prepared to take advantage of emerging growth opportunities by making targeted investments. Chief among these are efforts to strengthen their employee teams and ensure they have the right people in place to respond to rising customer demand."

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