31. May, 2020

Solidarity or Shareholders?

Solidarity or Shareholders? The dilemma of Health care CFO during crisis. Recently Prof. Dr. Dennis OstwaldWifOR Institute shared the outcome of his analysis showing that currently "health expenditures are essential to set up a future defence plan as well as to stabilize the economy". While Governments should sustain health care spending, Health care CFOs are struggling with a demand slowed down by lockdown. If they reduce investments and spending, it will benefit short term shareholders interests but shifting to the stakeholders the financial burden of reduced activity with further slow down in economy. Moreover while healthcare is among the sectors less exposed to economy slowdown, many of their vendors are already more impacted. With a long term Solidarity driven view investment should be kept while the short term response may harm even more Healthcare stakeholders community. Then The Dilemma. hashtag#freshstart