Kirk Strack, CFO of University of Louisville (Ky.) Health, has been in healthcare his entire career, a span of 29 years. Now at the financial helm of the system, Mr. Strack is keeping his eyes and ears on the rapidly changing industry.
"I'm watching the federal government impact on healthcare, just like everybody else is," Mr. Strack said during a Becker's CFO+Revenue Cycle Podcast episode. "The impact of Medicaid, in particular the $800 almost $900 billion of cuts that they want to make to the Medicaid program, are very concerning for a safety net system like we are."
UofL Health is an academic medical system that was established in November 2019 through the Louisville-based University Medical Center's acquisition of KentuckyOne and Catholic Health Initiatives Louisville assets, according to its website. Mr. Strack started at the system as assistant CFO and became permanent CFO in July 2023, according to his LinkedIn page.
A March 11 report from the Urban Institute and the Robert Wood Johnson Foundation found that proposed Medicaid cuts could result in an $80 billion revenue loss for providers in 2026 and a spike in uncompensated care costs. Mr. Strack said projected revenue reductions for the system related to the potential cuts are between $100 million and $400 million.
"That is our most important thing that we're working on now. We're beginning our fiscal 2026 budget," he said. "This is good timing to be doing some of that modeling."
To stay on top of any policy changes, University of Louisville Health relies on resources like the Kentucky Hospital Association and engagement with state legislators.
Looking to the next 12 months, Mr. Strack said the system will be laser focused on growth, with a focus on strategic opportunities.
"As we get better at our existing strategy, we open up opportunity," he said. "We have to be very targeted, centered on access, centered on need and we need to do it well."