Becker’s Healthcare Podcast Episode Summary
Title: Andrew DeVoe, Executive Vice President and CFO of Tufts Medicine
Host: Madeline Ashley
Release Date: July 11, 2025
Introduction
In this insightful episode of the Becker’s Healthcare Podcast, host Madeline Ashley engages in a comprehensive discussion with Andrew DeVoe, the Executive Vice President and CFO of Tufts Medicine. With a career spanning 38 years in the healthcare industry, DeVoe offers valuable perspectives on financial leadership, organizational turnaround strategies, and the evolving landscape of U.S. healthcare.
Andrew DeVoe’s Background and Career Journey
Andrew DeVoe begins by sharing his extensive background in healthcare, highlighting his 38-year tenure in the industry. He details his early years in the for-profit sector with companies like HCA and Tennant, followed by pivotal roles at UPenn and in private equity. DeVoe recounts his leadership positions at Apollo Health Street and Physiotherapy, where he achieved successful exits. Transitioning to the nonprofit sector, he spent eight years at Tri Health in Cincinnati, focusing on value-based healthcare. In February 2024, DeVoe took on the role at Tufts Medicine to spearhead its financial turnaround.
Notable Quote:
"I’ve been in healthcare for 38 years... and recently I joined Tufts Medicine to really help lead the turnaround."
— Andrew DeVoe [00:24]
Turning Around Tufts Medicine’s Financials
DeVoe provides an overview of his initial challenges at Tufts Medicine, where the organization faced a $300 million loss run rate. Through strategic interventions, Tufts achieved profitability by April 2025, marking a significant turnaround within 14 months.
Notable Quote:
"When I started, we were on a 300 million dollar loss run rate. The good news is in April we actually turned a profit."
— Andrew DeVoe [02:09]
Strategies for Organizational Turnaround
DeVoe outlines several key strategies that contributed to Tufts Medicine’s financial recovery:
- Elimination of Contract Labor: Reducing reliance on temporary staff to control costs.
- Centralized Benchmarking: Lowering the Full-Time Equivalent (FTE) count by nearly 1,000 FTEs while supporting institutional growth and quality care.
- Revenue Cycle Optimization: Addressing pre-authorization inefficiencies and fine-tuning the Epic system to maximize revenue.
- Enhanced Collections Metrics: Increasing collections per Relative Value Unit (RVU) from $68 to $84, alongside nearly $100 million in improvements on the HP side.
- Cost Control and Revenue Maximization: Balancing labor costs with revenue collection to stabilize the financial foundation.
Notable Quote:
"Our collections per RVU... increased from $68 to $84... and on the HP side it's almost $100 million of improvement."
— Andrew DeVoe [03:07]
Advice for Financial Leaders
Drawing from his extensive experience, DeVoe emphasizes the importance of leveraging external expertise. He advocates for hiring consultants not as a sign of inadequacy but as a strategic move to achieve rapid and effective results.
Notable Quote:
"There’s no shame in asking for help, especially if you can get the consultants to work on a contingency deal."
— Andrew DeVoe [04:44]
He shares a pertinent example from his time at UPenn, where bringing in the Stockamp Group accelerated revenue cycle improvements, resulting in $400 million in additional cash collected in a fraction of the time it would have taken internally.
Future Outlook and Growth at Tufts Medicine
Looking ahead, DeVoe expresses optimism about Tufts Medicine’s trajectory. Key focus areas include:
- Consistent Profitability: Maintaining financial stability.
- Balance Sheet Rebuilding: Enhancing financial health through strategic initiatives.
- Payer Mix Adjustment: Shifting towards more favorable reimbursement structures.
- Ambulatory Expansion: Growing outpatient services to meet patient demands and reduce costs.
- Non-Strategic Asset Monetization: Leveraging non-core assets to support financial objectives.
Notable Quote:
"We’re looking at some other things, non-strategic monetization of non-strategic assets and things like that to hopefully help bolster our balance sheet."
— Andrew DeVoe [09:08]
Key Industry Trends in Healthcare
DeVoe identifies three critical trends shaping the healthcare industry:
- Post-COVID Inflation Effects: Addressing the widespread cost increases and eliminating wasteful expenditures to enhance patient care quality.
- Denial Management: Tackling the challenges of claim denials to prevent resource drain and delayed payments.
- Healthcare Transformation to Value-Based Care: Shifting focus towards consumer-facing models that deliver higher value services efficiently.
Notable Quote:
"We transform healthcare to deliver more value for the service that we deliver, which is really a transition to value-based care."
— Andrew DeVoe [10:30]
Conclusion
Andrew DeVoe’s leadership at Tufts Medicine exemplifies strategic financial management and organizational resilience. His insights provide valuable lessons for financial leaders aiming to navigate the complexities of the healthcare sector. As Tufts Medicine continues its growth and transformation, DeVoe’s forward-thinking approach positions the institution to thrive amidst evolving industry challenges.
Closing Remark:
"I look forward to chatting with you again down the line."
— Madeline Ashley [12:12]
This episode offers a deep dive into effective financial strategies and leadership within the healthcare industry, making it a must-listen for healthcare decision-makers and financial professionals seeking to drive positive change in their organizations.