The strategy and finance departments of many health systems operate autonomously, with distinct expertise and responsibilities. However, complex market forces, including payment reform and tightening margins, are creating new urgency for health systems to more tightly align their budget and capital plan with their strategic plan.

Often called Integrated Strategic and Financial Planning (ISFP), the model encompasses synchronization of process timelines, standardization of inputs for planning models, coordination with capital proposal evaluation, and ongoing monitoring of strategic initiatives. This high degree of coordination not only improves the efficiency and quality of the work both departments do, but also helps the health system make smarter investment decisions and increases the agility in responding to market changes.

In this research report, we’ll explore 12 tactics that progressive health systems have used to move towards a more coordinated, approach to financial and strategic planning.