I. About the Financial Analysis Department
The Johns Hopkins Financial Analysis Unit is an internal consulting group for Johns Hopkins Medicine. It is one of six divisions within the Johns Hopkins Health System’s Finance department and is located on the Bayview Medical Center campus. The Financial Analysis team is headed by Michael Cardamone, who reports directly to Ron Werthman, Vice President of Finance / Treasurer, & Chief Financial Officer, The Johns Hopkins Hospital and The Johns Hopkins Health System.
The Financial Analysis Unit [FAU] was developed as an “Internal Consulting Unit” to handle any type of business planning and analysis project previously outsourced to large commercial accounting/consulting businesses. Since the majority of the unit’s work is project driven, the FAU has exposure to all levels of the institution. The unit is involved in almost all facets of Johns Hopkins Medicine as well as other entities. Internal “customers” include: Bayview Medical Center, Greenspring Station, Johns Hopkins International, Medical Services Corporation, Howard County General Hospital, Employer Health Programs, Johns Hopkins Health Care, and The Johns Hopkins University, School of Medicine.
Staffing for the unit includes one director, two senior managers, three project managers, two senior project analysts, and one project analyst. The staff is comprised of masters’ level consultants and certified public accountants with varied expertise in financial and actuarial analysis, accounting, database management, and information systems. Most often and where applicable, the group utilizes a teamwork approach for project management. This framework has benefits that are threefold. First, despite hectic schedules, there is always one team member in the office to answer questions and direct inquiries. Second, using a team introduces diversity in skills and personalities to a project, promoting varied brainstorming and “outside-of-the-box” thinking. Lastly, since the majority of the unit’s projects are very detailed and numbers oriented, the team framework ensures that no statistic, dollar amount, or procedure is overlooked.
As mentioned, the Financial Analysis Unit works on a wide variety of projects, plans, and proposals. The main functions of the department include:
- Compilation, planning, creation, and analysis of business plans
- Productivity studies and analysis
- Pricing of global capitation rates
- Development of utilization management tools
- Provide advice and detail regarding managed care contracts
- Evaluation of existing physician practices and/or other entities
- Joint venture planning, development, and analysis
- Business valuations
- Merger and acquisition due diligence
- Special projects relating to the operational and capital budgets
- Other types of financial analysis projects
While the concept of an internal consulting group may be unique within Johns Hopkins, it provides numerous benefits to the institution. First, internal consulting is cost effective in comparison to other commercial consulting groups. Next, the unit does not waste time learning institution specifics for each project, since the staff has detailed and experienced knowledge of Johns Hopkins Medicine and all its entities. The unit also functions as a neutral party in evaluations and analysis, removing political motives and incentives from feedback and decisions. Lastly, though years of work and a multitude of projects, the unit has built a reliable and irreplaceable network of contacts at all levels of the organization. This is especially useful when working under an immediate deadline or on a confidential matter. The Financial Analysis Unit is very customer focused. Over the years FAU has built a credible reputation throughout Johns Hopkins Medicine, as a group that can be counted on for an immediate response for project requests, delivering a high quality finished product.
