Treasury in the Healthcare Industry with Cathy McGarry

Foreign so welcome to this week's Treasury Career Corner podcast where I interview treasury professionals about their treasury careers. On my weekly podcast, I talk to treasurers about how they built their careers, where they are now and where they see both themselves and the treasury profession. Going to next this week's show. Delighted to be joined by Kathy McGarry, Director of Finance and treasury at Northwestern Medicine and the president of the Treasury Management association of Chicago, tmac as some people know. And they run the Windy City Summit, which I'm delighted to say I've spoken at seven years in a row. Hopefully I've done enough this year to get invited back next year. But we'll, I'll ask Kathy that at the end of the show, see how, how well I've done. For those people or listeners that don't know, Northwestern Medicine is the collaboration between Northwestern Memorial Healthcare and Northwestern University and their School of Medicine. So they've got strategic vision where they're transforming the future of healthcare, overseeing research, teaching, patient care of an academic medical facility. And they overall as a group over 30,000 staff, 100 locations throughout the region and one of the top hospital systems in the country. Now Kathy, who I've known for many years, encounters a dear Chicago friend which is lovely, is currently the director of Treasury Ops for Northwestern Medicine, which he's successfully spearheaded system implementations because you've got real theme of treasury technology and that will come out I think in our conversation and treasury transformation and there's lots of other things. You know, Kathy's got an mba, she's got various other bits CTP and most recently has been the president of the Treasury Management Association. As I say, that's enough for me as always, Cathy, it's over to you. Perhaps you can tell the listeners how did you first get started or discover treasury as it was at the beginning of your career? Maybe.

Okay, well thanks Mike, for the introduction. I think like most treasury professionals, we started off in banking. You know, I started off with the opportunity to be part of a bank rotational program where I got to see all aspects of the bank from client facing to the back office, which was great to just see, you know, how the process works from a banking treasury cash management perspective. And after the program ended up I worked in the accounting area at the bank. And then the next thing I found a few years later that I was working in healthcare finance and I had the opportunity to actually interview for a Treasury analyst role. And I took that to my advantage and took the opportunity and focused on cash management, banking, debt, short term investments and merchant Processing. And after moving from accounting to treasurer, I never looked back. I really enjoy Treasury. I think it's something to be passionate about. There's so many things learn in that industry.

So, Cathy, how does it differ, if you like? So what role does treasury maybe play in the healthcare industry specifically, rather than maybe in comparison to other industries or what specifically about treasury and healthcare, would you say?

One thing about treasury and healthcare, and I think it's true for all treasury areas right now, is our strategic role in the industry. We're a partner at the table. We're working with our senior management to implement working capital initiatives and system integration. But what's different with healthcare is, you know, we're partnering with departments, multifunctional teams, clinicians, physicians, on our primary focus, which is patient engagement. You know, the patient comes first. But we're also looking at, you know, financial stewardship and operational efficiencies. And when we're looking at our patient experience, like I said, it's very important in healthcare. We're looking at one system process, one emr, one electronic medical record. So we have data there in one area, so the patient has it available to them.

And what was treasury technology like when you perhaps first started out within that? Because obviously it's transformed and treasury technology is a big part of your background. I know, but maybe just for the listeners, Kathy, what was it like and how has it evolved or changed?

So, Mike, that was a long time ago. There were manual processes and Excel spreadsheets. I think we were starting to see bank portals with transaction activity and movement of funds, but paper was common. You know, there was a lot of electronic processes. The treasury processes were in the early stages of automation, you know, with eft, remote deposit. And we were just starting to see electronic payments to suppliers.

And then, you know, you talk about maybe the key differences, you know, when you're a treasurer within health care, how does that compare to, you know, you're the president of tmac and you get to meet lots of different treasurers. And I said before, I said actually when I spoke in Chicago that everyone, a lot of people in that had the title of treasurer, but actually the jobs that you did was different. So looking at that from your perspective, what the key difference would you say working as a treasurer in health care versus maybe other corporate environments?

I think overall our strategies are similar, but one of the big differences in healthcare is that we're not for profit and we're patient focused, whereas in other organizations the focus may be more on the profit and meeting your earning expectations for Wall street or your shareholders. What we're focusing on in healthcare as our research and development, we're talking about how we can focus on better outcomes for our patients, provide better patient care. It's all centered around that patient experience. And another thing that's a key differentiator is over the years we've seen a lot of regulatory changes within healthcare with Affordable Care act, government plans, electronic medical records, and that's continued to impact our excess margins, our reimbursement. And it just places more demand on our health system to manage costs. And this impacts treasury because we have to find solutions and more efficient processes that manage revenue, expenses, banking and liquidity.

And obviously seeing the role of treasury within health care itself has evolved and changed over time. How have you seen that sort of, what's the firsthand account from you, your person there at the front line? How have you seen treasury changing within healthcare?

I'll tell you, we're a lot busier. There's so much going on. Our role has really changed over time. We're involved in every aspect of the organization because there's been such an increase in M and A activities and regulatory changes. I mean, every few months we're onboarding new physician practices, hospitals and other freestanding facilities because there's such a big focus on system integration, change management, standardizing our process, that we're just constantly trying to bring everything into one process on an ongoing basis so we can be more efficient. You know, how my role is in treasury is, you know, I primarily focus on people, process and technology. So I'm working with multifunctional teams across the organization to lead change, implement processes and technology so we can manage our cash more efficiently and optimize our working capital.

And you're saying that that technology is making a difference to the treasury function, you know, with yourself, obviously that's been a big key strand of your experience. You love, you know, you're great at that technology piece. How you seen that technology piece making a difference firsthand, would you say?

Well, I'm on my fifth EPIC implementation. That's our electronic medical record. And what we're doing is we're trying to have one system for patient data, patient engagement, but in that system we focus on different ways to collect patient payments because you're seeing more high deductible plans. And you know, we're looking at different ways within that system for web portals, mobile functionality, and then, you know, in healthcare we're just not looking at patient payments, but we're also looking at insurance payments and you know, we're just bringing all those processes together so we can consolidate them, streamline them. So we have, you know, one process with that integrates with our emr, with epic, so we have the ability to collect payments, post them and reconcile them successfully.

And you yourself, you're obviously leading your treasury function. What would you say has been key to your success? What is your, what's your secret sauce? If you like, what do you like as a Treasury leader?

So, Mike, if I asked other people to describe my personal brand, they'd probably say I'm a strategic thinker, I'm a problem solver, definitely results oriented, innovative. And I'm constantly bringing teams together in order for us to be successful with our initiatives and our goals as an organization. I think what has helped me the most is my ability to adapt with all the changes in the industry because it's constantly. And I have to lead with intent, which means I have to look at each challenge as an opportunity.

Cathy, you say you know, every challenge is an opportunity. What do you mean by that? Because you hear that maybe in some of the management books, but you know, what's your attitude to do it? You say you just embrace that or why do you say that?

I think you have to definitely embrace it. I think when you're bringing multiple systems together and there's a lot of changes in a lot of different cultures and processes, sometimes I think there's a tendency to be fear of change. And I think you have to find what the opportunity is and embrace it and know that there's an ability to make a process more efficient and make it better for the organization overall.

And obviously you've got a range of different people maybe within the team and things like that. So you're probably coaching those guys. But how are you, how would you go about getting, say a junior treasury analyst and saying, right, this is how you should develop your career. This is how I've got to my position. And we got a lot of those junior listeners listening here when they're saying, oh, what should I do? What's the first steps? Or what are things you would recommend sort of thing.

I think I'd recommend that they work with their manager to create a career development plan. And I think that's important because it helps them identify their skills, their strengths and weaknesses, but it also helps them map out their next steps, set their goals along their journey. But I think it's also important for you to work together with them to find a mentor within the company or someone they can meet, one on one, where they have the areas of interest, like if they want to learn more about data science or about technology or about marketing or about digital items. It just gives them a chance to actually explore and learn from others. And I just think it's important as you continue your career path to have good mentors.

And what have you gained from that? What's been key facet for you of perhaps having mentors? I know that I spoke to Karen Van den Dreesha in the past from Avnet. She said it was one of the key things for her as I've stuck in my head for all this time. On the early podcast we did, she said it's about having a safe place, Mike, where you don't sound stupid so you can have a crazy idea, you've got an idea to explore. If you've got a mentor, it means you can talk to them, you can run this idea past and you're not going to be laughed out the room. You can just chuck it out there and see what it is. But for you, what's it been? What's it given you as a person?

Well, Mike, I'd say I think it's important to have mentors, but I think it's also really important to have executive sponsors. So when I think of mentors, I always think executive sponsors just because if I didn't have my executive sponsors, I wouldn't be able to lead successful projects that impact our organizational goals. But I think it's also important to have mentors because those are the ones that you can work with to help develop and grow your skills. Those are the ones that I've had in my career that said, you know, five years ago, Kathy, why don't you go back and get your mba? Why don't you do this? You know, they're always encouraging you to invest in yourself and go outside your comfort zone.

And you, you know, you and I spoke. Well, we just mentioned there at the beginning of the show that, you know, perhaps talk through and this is one of the other things we've discussed as well. I recently come back from Windy City Summit. Great show. Anyone that's thinking about it, go next year. It's fantastic. Kathy's the president. I'm not being made to say these words. I've loved it. Otherwise I wouldn't have gone back seven years in a row and hopefully year eight. What's been your involvement in tmac and why would you say that people should get involved in associations like that?

Would you say, first of all, it's a great experience. I've been involved with TMACC last eight to nine years and I've served in various leadership roles on the Treasury Management Association, Chicago Board and most currently as president of tmac. And it's just great to lead a premier organization and continue to develop your leadership skills, but it also gives you the opportunity to learn and collaborate with professionals all across different industries, all different levels. Some of our members are new to the treasury, some of them are in middle management, some have been working several years and are very seasoned in Treasury. And it just gives you a chance to learn from them and find out about what's worked for them, what are the trends in Treasury. It's just a great experience. Experience to have that network of people, you know, as part of your association.

Then obviously, as you can hear and the listeners can hear, you've got the quietest life ever. You've got your studies, which you've done as well, you've got your work life, that job thing, you're involved with tmac, you're a mum. So how do you balance all that? You've got the most number of spinning plates. I've heard of many of my treasures.

That's true. I do have a lot on my plate. I think it's important to focus what is actually important in your life. You know, time management is key, but you have to have a good network of people that encourage you, support you and they want you to be successful. You know, it could be your staff and your boss at work, it could be at home, it could be your social network, but you also have to have a good work life balance. My goal this year was to focus on self care, you know, schedule time for yourself to recharge and enjoy life.

And Kathy, you mentioned earlier you've done professional study and you done the MBA minor in Organisational development. So how has that impacted you as a person and perhaps on the organisation? Was it just something you just fancied doing and did it, or was it something thought, right, I've got to do this for work, or how was it sort of structured or came into your thinking, as it were?

Well, I've always wanted to go back for my mba. I've had a couple opportunities to do it first early in my career, but then I found out that I was expecting a family and that was my focus at the time, was to focus on raising my family. After I started to raise my family, had the opportunity to go back for an MBA again, which was about five years ago, I just thought of it as an incredible opportunity just to be able to continue to learn and just on the business side, I could have just focused on the Master in Business Administration, but I also wanted to focus on organization development because I do a lot in my job with change management dynamics, cultures and all that, that really impacts system integration and I find it very interesting. So by having a minor in organization development, I've been able to look at things through other people's lenses. It helps me better understand processes, cultures, communication styles, et cetera. And this in turn helps me just do better with my change management role. I'm working with new systems, new physicians, to integrate into one standardized process, new technology and to become one organization. And I think from an MBA perspective, just being able to become more of a strategic thinker, be more self aware, have good ei. I think in, you know, in my business, since I work with people, process and technology, it's so important to have both the hard and soft skills.

And you talk there about having a successful career and things like that. What lessons have you perhaps learned and you know, maybe from the mba, but also just in general terms, what things stand out to you because you've got all this great track record? What are the key lessons that have stood out for you sort of thing.

I know I've said this before, but I've never stopped learning. I'm a passionate learner. I like to continue to learn and grow. And I just think it's so valuable to get those new skills and always being willing to go outside your comfort zone. And as part of that, you just have to continue to refine and develop your leadership skills so you'll always be ready for whatever the next opportunity is around the corner. And like I said before, you got to look at each challenge as an opportunity. Don't be afraid of change, Embrace it. And it's something I do every year and maybe other people do this too. But as I start the new year, I always make a list of my personal and professional goals that I want to accomplish. And it just gives me the opportunity to continue to challenge myself to get better and better.

And you as well as doing all this, as I said earlier, not busy enough. You just literally have a couple more hours of the day or the night. And you do volunteer work as well. Why is that something that you've managed to sort of shoehorn in there as well?

Because I have a passion to make a difference by volunteering. It gives me a chance to give back to the community as well as my organization. For example, you know, when I serve on these various leadership roles on the board of TMAC and As president, I have the opportunity to develop our future leaders. But I also bring back value to our organization with best practices, the latest trends, different things I learned from our educational meetings and from Windy City. It's just a win win just by developing those future leaders, growing yourself and then giving back to your organization.

And as you know, as we talk through your career and you just mentioned there about future leaders and everything else, but more in general. Again we keep on going over the conference, but it was such a great event this year, really enjoyed it. But just thinking about you, where do you see treasury going to what we maybe from this year and things like that. What do you see as the future of Treasury? Where is it going?

So one of our folks is at tmac that I had shared with the board this year was one of our objectives is that we wanted to have a Treasury track at Windy City Summit because there's been so much change with the emerging technology. We've also incorporated that into our monthly meetings. There's such a focus on blockchain, rpa, cloud, artificial intelligence, AI, fintech. And I just think technology is just constantly changing. It really impacts us in treasury and we just need to be ready for it because it's moving so fast. We just got to jump on. And I think most importantly, when I look at what's going to be beneficial to treasury in the future is going to be data analytics followed by AI and blockchain. You know, we're going to be automating our processes with robotics. This is going to impact all parts of Treasury. You know, maybe it's in insurance, maybe it's in trading trading, maybe it's in banking, risk management. I just think you have to be more aware so you can be more efficient and apply it to your environment.

And looking at the future, we talked about the future of treasury, what's the future for you? You know, how do you see your career continuing to develop? Because sometimes people say, oh, I've got to treasure roll, but a lot of people like yourself, you just keep going. So tell us how you're going to keep going. What's next for you? How do you see it developing?

Well, I continue to develop my leadership skills. I think that's most important to work with your company to develop that leadership plan, work with coaches to continue to expand your opportunities, focus on your strengths. I think it's important to have the passion with me. My passion is I want to continue to lead innovation and changes in healthcare and Treasury. That's something that I really enjoy doing. You know, I have to continue to expand my technology knowledge so I can work with, you know, our partners, our vendors, our payers to find better solutions to drive down healthcare costs and, you know, continue to have that patient experience. But I guess, you know, at a high level, what I really see is my role just encompassing to, you know, higher strategic vision that's going to continue to add value to my organization and industry and to the treasury world.

And as we wrap up today's show, and as you know, the closing question, if you like, and the closing pitch I have to you looking back over and we will put your LinkedIn profile in the show notes so people can perhaps connect to you if it's right for your network and theirs and you feel it's a good fit, as it were. Is there any advice you would give to someone who they look back and say, you know, I want to have a similar profile or the same as Cathy, that's as good the way she's made the progression, that's similar to me. What's the sort of few tips you would give to people if they're going, yeah, that's me, I want to do the same. What would you say?

Okay, some of the advice I would give them is probably what I learned a couple years ago from Cheryl Cran. She was one of our speakers at the Windy City Summit in Chicago. And something that she said that I've always kept in the back of my mind because I could relate to it and she said, keep passionate and success will come your way. So you'd always have to focus on, this is what I'm going after. Just keep getting better and better, keep the passion, keep learning, keep growing and success come your way. And then something that I have on my desk just to remind me every day, and this is something I really believe in, is that you just have to continue to dream big, work hard, stay focused and most importantly, surround yourself with good people. I think, you know, another thing I would say is don't be afraid to go outside of your comfort zone. You know, it's imperative for growth. There are several roles that I've taken over the years. There's promotions that I've taken throughout our healthcare industry. I've served on our steering committees, I've led some important projects, I've done presentations and I've also led roundtables at afp. And then now just being the president of a TMAC board has helped me to grow, lead and develop my leadership skills.

Awesome. Well, there you go, people. Listen to. I hope you've enjoyed today's podcast. It's been great talking to Kathy and catching up with her. Some of those closing quotes, if you like, and some of the things that you just put there. We're going to put in again in the show notes. I think it's awesome. Well, great to chat and good to catch up. Good to see you in Chicago and I'll see you once again. This year. We're doing more and more. Our US Business is just taking off like a freight train. So, yeah, all that remains for me to do is say thank you, Kathy, for your time and look forward to seeing you soon. Many thanks.

Thanks a lot, mate.