Doug Magazu is the chief financial officer at Cornell Scott Hill Health Corporation. He is a team player partnering with clinical and operations, whose goal is the delivery of high-quality patient services most efficiently and cost-effectively.
He is responsible for CS-HHC’s financial operations, including finance, accounting, tax, treasury, audit, procurement, accounts payable and patient accounts. In addition, he is responsible for third-party payer relationships, contract management and grants management.
What have been your biggest professional accomplishments over the past year?
I led an initiative to create an expense-reduction strategy. The strategy included consolidating our vendor contracts into a group purchasing organization (GPO) arrangement, which enabled us to save over $1.5 million with 10 different vendors for goods and services.
A second significant initiative I led was to renegotiate five payer agreements, which added $5.5 million in revenue. In addition, we were able to produce clean financial audits, schedule of expenditures for federal awards (SEFA) audits, cost reports, pension audits and 990 tax returns.
While I led these initiatives, none of them would have been accomplished without the diligence of the team leaders who handle day-to-day operations in finance, grants, patient accounts and business intelligence.
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In what ways are you involved in the community?
I have deployed a philosophy that most can contribute by donating either time, talent, or treasure to the community. I have deployed this strategy to support local programs through financial donations, coaching and board/governance activities.
On the Job
Guiding business principles: My approach is to utilize two sets of guiding principles, ethical and managerial. Ethical approaches include honesty, integrity and fairness principles. My management approach is grounded in empowerment, accountability and collaboration principles.
Best way to keep your competitive edge: Never stop learning, encourage and fund your staff to do the same. Plan for today, three and five years out to ensure good growth and efficient processes. In the healthcare environment, you must remain knowledgeable and flexible.
Best business decision: Conducting a portfolio review and negotiating with all major vendors and payer agreements. The results yielded over $7 million in profitability during a downturn in performance.
Worst business decision: Hiring of a hospital-based orthopedic surgeon/group, which caused turmoil with the non-hospital-based orthopedic providers. As a result, the non-hospital-based providers referred all the radiology cases to another organization, causing a decrease of nearly $2 million in revenue.
Biggest missed opportunity: Inability to close a merger and acquisition deal with a large multi-specialty practice that would have resulted in nearly doubling our operating margin. Moreover, the deal was closed by a competitor in the market two months after our negotiation period ended.
Goal yet to be achieved: Development of quality and performance incentive opportunities with the payers.
Personal touch in your office: Open door policy and cappuccino machine
Personal Side
City of residence: Newtown
Favorite way to relax: Working out (walking, running, stretching, and lifting weights) and spending time with family
Hobbies: Sports and cooking. My current favorite pastime is following my two kids’ collegiate athletic careers (women’s lacrosse and football)
Last vacation: Outer Banks, North Carolina
Favorite movie: Jaws
The car you drive: Chevy Tahoe
Currently reading: “Just Mercy,” by Bryan Stevenson
Favorite cause: Improving access to healthcare
Second choice career: Football coach/general manager
