In an innovative and dynamic period for the healthcare industry, high CEO turnover, leaders from outside the traditional realm and C-suite changes bring new skills and fresh blood into hospitals and healthcare systems, according to a Hospitals & Health Networks post by Mary Grayson.
CEOs' roles are changing in the wake of the American College of Healthcare Executives' report that said hospital CEO turnover tracked at 20 percent in 2013. This was a "tipping point," Grayson, editorial director of the publication, writes, citing CEO retirements and fewer slots due to new management system structures and changes in the industry.
More and more, hospitals compensate CEOs based on quality and outcomes, and leaders must come up with ways to reduce hospital admissions as readmission penalties rise and population health becomes a greater concern among industry leaders.
Hospital boards aim for a new perspective by hiring leaders with little or no healthcare experience, but rather a focus on business development, financial management and productivity, Grayson writes, citing a Black Book survey announcement that stated only 39 percent of CEOs hired in 2013 came from another hospital CEO position.
As CEOs come and go, so do the C-suite executives serving under them, which can mean almost a complete leadership overhaul in a short period of time, often within nine months of a new CEO takeover, Grayson writes. However, as leaders with little or no healthcare experience take the helm, subordinates with market and industry knowledge become more and more valuable. Grayson calls on hospital boards to develop clear measures for leadership and hospital success.