August 8, 2025 • 10 mins
Charles Brinkley III, Senior Vice President and CFO at Baptist Health Care, shares how his team is managing inflationary increases while protecting patient care quality. He discusses efforts to create long-term financial sustainability, the development of a new inpatient rehabilitation center on campus, and outlines both near-term growth strategies and a five-year plan for sustainable expansion.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
This is Madeline Ashley with the Becker CFO
and revenue cycle podcast, and I'm so excited
to be joined today by Charlie Brinkley the
third, senior vice president and CFO of Baptist
HealthCare. Hey, Charlie. Thanks for joining me. Good
morning, Madeline. Happy to be here.
Wonderful. So before we begin, Charlie, do you
mind sharing just a little bit about yourself
(00:21):
and your organization with our listeners?
Sure. I'd be happy to. So, again, I'm
Charlie Brinkley. Currently serve as the senior vice
president and chief financial officer for Baptist HealthCare
here in Pensacola, Florida.
I've been in health care finance now for
about eighteen years.
And before that, I spent roughly five years
in public accounting. So I guess you could
say that finance is really a big part
(00:42):
of my story.
The early part of my career was with
community health systems where I worked across four
different facilities in four different states.
Since in 02/2018,
I transitioned to the nonprofit sector first working
at Singing River Health System in South Mississippi,
then at Murray Regional Health in Middle Tennessee.
Now at Baptist, we serve the Gulf Coast
(01:04):
here in Florida with three acute care campuses.
We have an inpatient behavioral health facility
and a wide outpatient footprint. We've got multiple
medical parks, ASCs, and we employ around 300
providers.
It's really a great organization that has deep
roots in this region.
We're just shy of about a billion dollars
(01:25):
in net patient revenue.
Wonderful. Thank you so much for sharing all
of that with me. So to kick us
off,
you know, obviously, as you well know, you've
been in the industry for a while. Health
care is ever changing,
and we are continuing to see, some ebbs
and flows here in the industry, especially right
now. So with this in mind, do you
mind sharing maybe two to three trends that
(01:47):
you are closely keeping an eye on and,
why these specific trends,
are so important to you right now as
a financial leader?
No. Thank you for that. There are certainly
several items that come to mind. I think
first and foremost,
all of us across The US are probably
dealing with margin compression
and, really, the focus on creating a sustainable
(02:07):
cost structure.
Margin pressures really just are
are remaining very real on a day to
day basis. Post pandemic, we're still seeing increased
labor costs.
And while we may have a, you know,
reduction in our dependence on contract labor, the
the base wages are structurally higher. And so
when you work in a highly competitive market
(02:28):
like we do here in Pensacola, Florida, it's
something that you have to stay on top
of day in and day out.
On top of that, I think inflationary increases
in our supply chain and our purchase service
areas continue to,
impact how we approach our day to day,
how we approach our budgetary process on an
annual basis.
And these are really areas that you can't
(02:49):
just trim without potentially impacting patient care. So
we wanna be very mindful
as we seek out sustainable structures moving forward.
I'm sure we could probably talk about health
care reimbursement for hours on end because that
is an area that I think all of
us are dealing with day in and day
out. Right. Our commercial payers have been slow
to adjust to these inflationary
(03:09):
increases.
Negotiations,
across the table, I think, are becoming more
and more difficult.
Not a lot of movement, that you can
see on that commercial payer side, and you're
continually working
to try to move the needle appropriately
for your market and, creating that dynamic where
you can continue to offer,
all services.
(03:30):
Governmental rates are probably flat at best, and
I think when you factor in inflation, you're
actually seeing that decline. And so as you're
working with CMS and how they're impacting things
on a day to day basis.
So when you factor all of those things
together,
you know, how do you
create sustainable change becomes very important.
It can't just be a onetime fix that
(03:51):
creates cost savings for the here and now.
It has to be sustainable over time. And
so here at Baptist, we're really trying to
focus on how to create
processes and structures
that are gonna allow us to continue to
invest appropriately in patient care while maintaining
positive margins.
Could you touch on some of the
strategies that you're using? Just dive a little
(04:12):
deeper there.
Yeah. I'd be happy to. So one of
the areas for us specifically is an intense
focus on our cost accounting platform.
Right? Ensuring that we have a cost structure
in place and a platform that allows us
to have strong visibility and transparency of how
we're performing at a service line level.
And we have what we call here
(04:34):
a smart team, so a sustainable
margins amongst rapid
transformation.
And so in this smart team, we spend
a lot of time focusing on all areas
of the organization.
And so, really, what we do there is
we identify specific targets of cost reductions throughout
the organization. And, really, nothing is off the
(04:55):
table. And so we come together as a
senior executive
team, and we discuss our labor. We discuss
our purchase services. We discuss our professional fees,
and we think about where we have opportunities
to move the needle. And then we go
out and we attack those areas
appropriately and create either savings through,
contract renegotiations
(05:15):
or looking at RFPs and changing those that
we're doing business with. And this is not
something that we're just doing on a quarterly
basis. We have these meetings on a weekly
basis. So it's staying top of mind for
our entire team so that we can really
hone in on creating
sustainability for the long run.
Thanks for diving a little deeper there. I
(05:36):
kinda wanna shift gears and hear maybe what
you're most excited about right right now at
Baptist HealthCare.
Maybe even just the rest of 2025
looking into next year. I can't believe we're
already halfway through the year in the first
place, but, yeah, just what what excites you
right now? No. I I appreciate that comment
there. I am really excited about the momentum
that we have here at Baptist.
(05:57):
We opened our new main campus in the
2023,
and since then, we've become the inpatient market
share leader for our region. It's an absolutely
beautiful campus that we have here. And so,
really, as we continue to focus on the
remainder of 2025,
it's how do we keep building
on the momentum that we're feeling? How do
we become broader, smarter, and more nimble in
(06:19):
how we're caring for our community?
We don't we recognize that we can't always
be the provider of all things, so we
wanna think strategically about how we partner in
the community, how we create joint venture relationships.
Case in point, in the next twelve months,
we're gonna have an inpatient rehab hospital open
on our campus,
and that allows us to continue to focus
(06:41):
on sustainable growth while mitigating our own risk.
So I really think that's the journey we're
on right now at Baptist, and I can
certainly say that the future is very bright
for this organization.
That's incredible to hear. And you you touched
on it a little bit, but any other
thoughts on just
how you're thinking about growth next twelve to
twenty four
(07:01):
months, you know, just as a as a
financial leader.
Yeah. Growth today, I don't think means just
more admissions or more surgical procedures. Right? That's
a little outdated because all volume is not
equal, and that doesn't mean that it's gonna
create positivity on the bottom line. So for
us here at Baptist, I think growth needs
to be a couple of things. Number one,
(07:22):
needs to be profitable. We need to make
sure that we're investing in services
that have strong contribution margins that can sustain
into the long run.
We want growth to be accessible, meaning we
want to be easy to access in our
community. We wanna improve throughput, and we wanna
keep that care local here in our community.
We believe strongly in that. We are the
(07:43):
only independent,
health care system here in the Pensacola region.
So that's very, very important to us. I
think growth has to be strategic. I talked
about the inpatient rehab hospital. Right? We can't
be a provider of all things. So how
does that align
with where we're headed as an organization as
we focus on our five year strategic plans?
And then I think growth for us also
(08:03):
has to be capital conscious, meaning
every dollar really has to work harder today
for us. That means we've gotta be very
disciplined in our performance,
make sure that it's aligning with our strategy,
that there's a real return on investment.
I think if we can continue to focus
on that type of intentional growth, that's what
will position Baptist to thrive in the long
(08:24):
term.
And final question for you here. I think
at the beginning of the podcast, you mentioned
you've been in health care for nearly two
decades, eighteen years. Right? Yes, ma'am. So and
with the main focus on finance. So could
you share maybe how you've seen the CFO
role
evolve and where you see it going even
in the next three to five years?
(08:46):
Well, I appreciate that. When I think the
days of a CFO just kinda sitting quietly
in their office, no longer exist. Right? We're
embedded really day to day in operations,
helping shape strategy at the elbow of our
operational and clinical leaders, and I enjoy
that aspect,
of my role. We continue to navigate tight
margins. We have to make tough capital decisions.
(09:09):
And and so when you're focused in that
space, stewardship just isn't managing the dollars alone.
Right? It's really enabling our mission. Our goal
is to help people throughout life's journey.
And in this moment, I think the operational
strategic and real really the regulatory dimensions of
the CFO role have never been more connected
or more critical. So it's highly imperative that
(09:30):
we're sitting at the table shaping strategy hand
in hand with our operational and clinical leaders.
And I could see that
continuing to evolve over the next two to
three years and becoming
really a stalwart in health care in general.
Yeah. Communication is key.
Yes. It is.
Thank you so much, Charlie, for being on.
(09:51):
It's been such a pleasure chatting with you.
And I'm excited to hear more about Baptist
HealthCare down the line, all the exciting things
happening there, and to also chat with you
again soon.
Thank you, Madeleine. Really appreciate your time today.
This is Madeline Ashley with the Becker CFO
and revenue cycle podcast, and I'm so excited
to be joined today by Charlie Brinkley the
third, senior vice president and CFO of Baptist
HealthCare. Hey, Charlie. Thanks for joining me. Good
morning, Madeline. Happy to be here.
Wonderful. So before we begin, Charlie, do you
mind sharing just a little bit about yourself
(00:21):
and your organization with our listeners?
Sure. I'd be happy to. So, again, I'm
Charlie Brinkley. Currently serve as the senior vice
president and chief financial officer for Baptist HealthCare
here in Pensacola, Florida.
I've been in health care finance now for
about eighteen years.
And before that, I spent roughly five years
in public accounting. So I guess you could
say that finance is really a big part
(00:42):
of my story.
The early part of my career was with
community health systems where I worked across four
different facilities in four different states.
Since in 02/2018,
I transitioned to the nonprofit sector first working
at Singing River Health System in South Mississippi,
then at Murray Regional Health in Middle Tennessee.
Now at Baptist, we serve the Gulf Coast
(01:04):
here in Florida with three acute care campuses.
We have an inpatient behavioral health facility
and a wide outpatient footprint. We've got multiple
medical parks, ASCs, and we employ around 300
providers.
It's really a great organization that has deep
roots in this region.
We're just shy of about a billion dollars
(01:25):
in net patient revenue.
Wonderful. Thank you so much for sharing all
of that with me. So to kick us
off,
you know, obviously, as you well know, you've
been in the industry for a while. Health
care is ever changing,
and we are continuing to see, some ebbs
and flows here in the industry, especially right
now. So with this in mind, do you
mind sharing maybe two to three trends that
(01:47):
you are closely keeping an eye on and,
why these specific trends,
are so important to you right now as
a financial leader?
No. Thank you for that. There are certainly
several items that come to mind. I think
first and foremost,
all of us across The US are probably
dealing with margin compression
and, really, the focus on creating a sustainable
(02:07):
cost structure.
Margin pressures really just are
are remaining very real on a day to
day basis. Post pandemic, we're still seeing increased
labor costs.
And while we may have a, you know,
reduction in our dependence on contract labor, the
the base wages are structurally higher. And so
when you work in a highly competitive market
(02:28):
like we do here in Pensacola, Florida, it's
something that you have to stay on top
of day in and day out.
On top of that, I think inflationary increases
in our supply chain and our purchase service
areas continue to,
impact how we approach our day to day,
how we approach our budgetary process on an
annual basis.
And these are really areas that you can't
(02:49):
just trim without potentially impacting patient care. So
we wanna be very mindful
as we seek out sustainable structures moving forward.
I'm sure we could probably talk about health
care reimbursement for hours on end because that
is an area that I think all of
us are dealing with day in and day
out. Right. Our commercial payers have been slow
to adjust to these inflationary
(03:09):
increases.
Negotiations,
across the table, I think, are becoming more
and more difficult.
Not a lot of movement, that you can
see on that commercial payer side, and you're
continually working
to try to move the needle appropriately
for your market and, creating that dynamic where
you can continue to offer,
all services.
(03:30):
Governmental rates are probably flat at best, and
I think when you factor in inflation, you're
actually seeing that decline. And so as you're
working with CMS and how they're impacting things
on a day to day basis.
So when you factor all of those things
together,
you know, how do you
create sustainable change becomes very important.
It can't just be a onetime fix that
(03:51):
creates cost savings for the here and now.
It has to be sustainable over time. And
so here at Baptist, we're really trying to
focus on how to create
processes and structures
that are gonna allow us to continue to
invest appropriately in patient care while maintaining
positive margins.
Could you touch on some of the
strategies that you're using? Just dive a little
(04:12):
deeper there.
Yeah. I'd be happy to. So one of
the areas for us specifically is an intense
focus on our cost accounting platform.
Right? Ensuring that we have a cost structure
in place and a platform that allows us
to have strong visibility and transparency of how
we're performing at a service line level.
And we have what we call here
(04:34):
a smart team, so a sustainable
margins amongst rapid
transformation.
And so in this smart team, we spend
a lot of time focusing on all areas
of the organization.
And so, really, what we do there is
we identify specific targets of cost reductions throughout
the organization. And, really, nothing is off the
(04:55):
table. And so we come together as a
senior executive
team, and we discuss our labor. We discuss
our purchase services. We discuss our professional fees,
and we think about where we have opportunities
to move the needle. And then we go
out and we attack those areas
appropriately and create either savings through,
contract renegotiations
(05:15):
or looking at RFPs and changing those that
we're doing business with. And this is not
something that we're just doing on a quarterly
basis. We have these meetings on a weekly
basis. So it's staying top of mind for
our entire team so that we can really
hone in on creating
sustainability for the long run.
Thanks for diving a little deeper there. I
(05:36):
kinda wanna shift gears and hear maybe what
you're most excited about right right now at
Baptist HealthCare.
Maybe even just the rest of 2025
looking into next year. I can't believe we're
already halfway through the year in the first
place, but, yeah, just what what excites you
right now? No. I I appreciate that comment
there. I am really excited about the momentum
that we have here at Baptist.
(05:57):
We opened our new main campus in the
2023,
and since then, we've become the inpatient market
share leader for our region. It's an absolutely
beautiful campus that we have here. And so,
really, as we continue to focus on the
remainder of 2025,
it's how do we keep building
on the momentum that we're feeling? How do
we become broader, smarter, and more nimble in
(06:19):
how we're caring for our community?
We don't we recognize that we can't always
be the provider of all things, so we
wanna think strategically about how we partner in
the community, how we create joint venture relationships.
Case in point, in the next twelve months,
we're gonna have an inpatient rehab hospital open
on our campus,
and that allows us to continue to focus
(06:41):
on sustainable growth while mitigating our own risk.
So I really think that's the journey we're
on right now at Baptist, and I can
certainly say that the future is very bright
for this organization.
That's incredible to hear. And you you touched
on it a little bit, but any other
thoughts on just
how you're thinking about growth next twelve to
twenty four
(07:01):
months, you know, just as a as a
financial leader.
Yeah. Growth today, I don't think means just
more admissions or more surgical procedures. Right? That's
a little outdated because all volume is not
equal, and that doesn't mean that it's gonna
create positivity on the bottom line. So for
us here at Baptist, I think growth needs
to be a couple of things. Number one,
(07:22):
needs to be profitable. We need to make
sure that we're investing in services
that have strong contribution margins that can sustain
into the long run.
We want growth to be accessible, meaning we
want to be easy to access in our
community. We wanna improve throughput, and we wanna
keep that care local here in our community.
We believe strongly in that. We are the
(07:43):
only independent,
health care system here in the Pensacola region.
So that's very, very important to us. I
think growth has to be strategic. I talked
about the inpatient rehab hospital. Right? We can't
be a provider of all things. So how
does that align
with where we're headed as an organization as
we focus on our five year strategic plans?
And then I think growth for us also
(08:03):
has to be capital conscious, meaning
every dollar really has to work harder today
for us. That means we've gotta be very
disciplined in our performance,
make sure that it's aligning with our strategy,
that there's a real return on investment.
I think if we can continue to focus
on that type of intentional growth, that's what
will position Baptist to thrive in the long
(08:24):
term.
And final question for you here. I think
at the beginning of the podcast, you mentioned
you've been in health care for nearly two
decades, eighteen years. Right? Yes, ma'am. So and
with the main focus on finance. So could
you share maybe how you've seen the CFO
role
evolve and where you see it going even
in the next three to five years?
(08:46):
Well, I appreciate that. When I think the
days of a CFO just kinda sitting quietly
in their office, no longer exist. Right? We're
embedded really day to day in operations,
helping shape strategy at the elbow of our
operational and clinical leaders, and I enjoy
that aspect,
of my role. We continue to navigate tight
margins. We have to make tough capital decisions.
(09:09):
And and so when you're focused in that
space, stewardship just isn't managing the dollars alone.
Right? It's really enabling our mission. Our goal
is to help people throughout life's journey.
And in this moment, I think the operational
strategic and real really the regulatory dimensions of
the CFO role have never been more connected
or more critical. So it's highly imperative that
(09:30):
we're sitting at the table shaping strategy hand
in hand with our operational and clinical leaders.
And I could see that
continuing to evolve over the next two to
three years and becoming
really a stalwart in health care in general.
Yeah. Communication is key.
Yes. It is.
Thank you so much, Charlie, for being on.
(09:51):
It's been such a pleasure chatting with you.
And I'm excited to hear more about Baptist
HealthCare down the line, all the exciting things
happening there, and to also chat with you
again soon.
Thank you, Madeleine. Really appreciate your time today.
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