Robert A. DeMichiei

Executive Vice President and Chief Financial Officer, UPMC

Robert A. DeMichiei serves as executive vice president and chief financial officer of UPMC, a $20 billion integrated health care delivery and finance system that spans the full spectrum of care with its network of 40 academic, community and specialty hospitals and 700 doctors’ offices and outpatient sites, insurance services, and international and commercial operations.

Before joining UPMC in May 2004, Mr. DeMichiei held various executive finance roles with the General Electric Co. (GE). He served as manager of finance, global business development & integration for GE Energy and as chief financial officer for GE Transportation Systems’ Global Service Operations. He also spent 10 years with Price Waterhouse in Pittsburgh. He is a graduate of the University of Pittsburgh and is a certified public accountant.

Active in various community leadership roles, Mr. DeMichiei currently serves as Board Finance Committee Chairman for the United Way of Allegheny County and Seton Hill University.  He serves on the Board of Directors of UPMC Hamot and UPMC Susquehanna, the Pennsylvania Chamber of Business and Industry and the AAA East Central Boards.

Rob and his wife, Amy, have four children and reside in Hampton Township, PA.

Speaker Sessions

13 – The Case for Advanced Activity-Based Costing: How Cost Accounting Technology Must Evolve to Meet the Future of Value-Based Care (Panel) (Innovation, Financial; Course Level-Advanced)

As organizations adapt to the new reimbursement landscape, there is one area that is alarmingly overlooked — the measurement of health system costs.  The foundation of most health system costing is based on an outdated methodology that relies on inaccurate charge-master-assigned values.  Long-accepted in the fee-for-service reimbursement world, this approach exposes you to massive insolvency risk. In the value-based reimbursement world, health systems must know their true costs to succeed.

Enter the new activity-based costing: a breakthrough methodology that allows health systems to accurately measure and assess their true costs.  Supported by advanced extrapolation technologies, this methodology can place you far ahead of competitors in the value-based care market. But be careful! Not all activity-based costing is created equal (despite marketing claims to the contrary). Come learn from our panel of speakers from forward-thinking organizations that have already started to implement the new activity-based costing. Discussions may touch on questions such as:

  • How are you preparing for value-based care and capitated payment models?
  • Why should advanced costing improvements be a significant component of that preparation?
  • What are the current costing tools on the market, and why do they potentially lead to bad decision making? Why are these tools not up to par?
  • While many are claiming activity-based costing, what approach is really necessary to achieve the reality of activity-based costing?
  • How does a more advanced costing system change your ability to make decisions?  What are some specific examples of ways your decision making improved since you implemented advanced costing?
  • What benefits do you envision in the future as a result of switching to activity-based costing?  What competitive advantages do you see as a result?