Effective leadership is crucial to your healthcare organization’s success. With healthcare constantly advancing, your organization needs management that can navigate the certain upcoming changes. Without clear direction of how to confront challenges in areas like finance, innovation and patient experience, your organization could suffer. We’ve listed four ways incredible leadership can make the most difference in your organization now and into the future.
As you’ve seen in the areas of finance, consumer experience, quality, and innovation, the healthcare landscape is full of challenges and potential pitfalls. For 2019 and beyond, insurance reform coverage and payment reform will continue to drive fundamental changes in how healthcare is delivered and how organizations build successful financial models. Declining reimbursements and rising costs will continue to challenge margin performance. Provider organizations should continue to expect growing competition for market share, labor, and capital, plus increasing competition from non-conventional entities – suppliers, retailers and big tech companies like Amazon. Plus, as more providers and insurance companies align, and as providers begin to offer their own insurance products, your organization needs effective leadership to understand how to compete.
Your Potential to Thrive
Four areas of leadership can make a big impact on your progress:
Largely an effect of reform and competition, consolidation by and among providers, suppliers, and other sectors will continue and should be a focus for your leadership team. Across the country, examples of vertical consolidation are becoming more common. Affiliation planning should be on all your leadership’s radar screens, whether that be a Best-of-Breed approach, outright acquisition, or some place in between those two options and stubborn independence. Partnership planning in all its different variations should be considered.
Payment reform will continue to encourage larger, more integrated provider systems to become centers of specialized care and smaller community providers to be focused more on primary care. Tertiary providers can manage capacity by assuring that lower-acuity cases are diverted to lower-cost primary providers and vice versa. Your leadership team should understand when to look for a partner to assist with capital and when it makes more sense to leverage partnerships with smaller or more specialized facilities. As this shift occurs, there will be a need for different mixes of skills in both the provider and the clinical support ranks at both large and small facilities. Larger organizations typically struggle being more than a cost center in the population health world of today, so anything your leadership can put in motion to offer care in the lowest cost, highest quality, most accessible location will be a step in the right direction for your service delivery models. Plus, this kind of shift helps unload care services that take focus away from your system providing tertiary and quaternary services.
Nothing lasts forever, and the same is true of your leadership team. As larger numbers of leaders reach retirement age, you need a plan to ensure the next generation of leaders is positioned to take the helm in leadership and board roles. But you also need to understand how to keep key leadership in place while you embark on any affiliation planning processes that could ultimately have them handing over the keys to a new team.
New challenges, new technologies and systems, and new reliance on data create the potential for new leadership roles to help guide your organization. In particular, consider creating roles around data management or data translating, someone who can serve as the link between your analytics talent and your business strategy. This leader should understand business concerns, effectively articulate problems, and identify ways to solve those problems. If you don’t have the resources to implement this role on your own, consider partnering with someone who can help you translate your data in a way to offers actionable insights and positively impacts your decision making.
Without incredible leadership, your healthcare organization could struggle to give patients the best care while also staying relevant in the community. Are you in the search for effective leadership to help guide your hospital? QHR can help. Our experienced team can support you in your search for new leaders by matching the right one to your organization. As your organization begins this transition, we recommend our whitepaper: How to Prepare for CEO Turnover. Executive turnover occurs in every business, but it shouldn’t be a crisis. Learn what drives hospital CEO turnover and how to prepare for a smooth transition. Download it today.