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Trends and Market Forces Impacting Healthcare HR Executives in 2015

B.E. Smith Team | January 10, 2017

The 2015 American Hospital Association Environmental Scan is full of insights for human resources leaders in healthcare. The report tracks trends and market forces that will impact the entire healthcare industry. As healthcare continues to transition to a value-based care model, performing strongly requires executives to embrace new strategies. Here are some of the key takeaways provided in the 2015 Environmental Scan:

Workforce

According to this year's report, 53% of healthcare CEOs want to hire more people in the next 12 months, and 63% are concerned about whether they will be able to find people with the right skills. As CEOs and other healthcare leaders work for meaningful changes within their organizations, they will need the right team at all levels to accomplish their goals.

Hospital CEO turnover, meanwhile, is increasing. In 2013, the rate was 20%, according to the American College of Healthcare Executives. The annual rate tends to hover between 14% and 19%. Some factors contributing to increasing turnover could include baby boomers looking to retire, hospital consolidations and today's complex healthcare landscape. CEO turnover typically trickles down through an organization, impacting other important leadership roles. For this reason, it is vital organizations have a strategy to stabilize leadership when facing a senior executive vacancy. Many hospitals are utilizing interim leadership as a temporary solution and to maintain organizational momentum.

Hospitals are increasingly interested in workplace wellness programs. Leaders expect these programs will improve employee health and well-being, lower medical costs, increase productivity and reduce rates of absenteeism.

Physicians

The healthcare industry continues to experience significant growth in physician executive hires. Their primary responsibilities relate most strongly to establishing certain cultures within an organization. For example, physician leaders may be tasked with creating or maintaining a culture of accountability, and one in which excellence in care and resource stewardship alike are prized. Hospitals also recognize the significant advantage physician leaders provide, including advancing the organization's commitment to performance improvement. Physician leaders can also address the culture shock some physicians experience when transitioning to health system employment after private practice.

Quality and Safety

New evidence continues to emerge showing leadership engagement and focus creates improvements in healthcare quality and reduces patient harm, according to the Environmental Scan. Leaders at all levels in healthcare organizations are seeking proven strategies which will enable them to focus their efforts and achieve results for the populations they serve.

The AHA suggests leaders change their mindsets regarding patient quality and safety. First, leaders must truly believe that individuals and their families are partners in patient care. Second, it is also necessary to start competing on value, which means working constantly to reduce operating costs. Third, leaders should reorganize services to align with new payment systems. Finally, for lasting change, leaders must drive a culture which empowers everyone in the organization to improve quality and safety.

The shift to the new value-based care model is generating rapid change across the healthcare industry. The insights on trends and strategies shared by the 2015 Environmental Scan are invaluable to human resources leaders. It also removes some of the uncertainty all healthcare leaders are working to overcome. The process will be both challenging and rewarding. As your trusted advisor, B. E. Smith is ready to assist you and your organization.

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B.E. Smith Team

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