Majority of health care leaders expect improved organizational health in 2024
49% said hiring candidates for leadership positions is taking somewhat or much longer than in the past.
“After weathering the storm of COVID-19, which combined the double whammy of revenue losses with cost increases, many health care executives are seeing somewhat brighter skies ahead,” said Christine Mackey-Ross, president of AMN Healthcare Leadership Solutions. “Revenues are returning and costs are stabilizing, though the challenges facing health care executives today remain serious and unpredictable.”
AMN and its leadership solutions division, B.E. Smith, surveyed more than 660 hospital, health system and group practice leaders about their expectations for the coming year. Forty-four percent expect financial constraints to be the most disruptive factor to their organizations in the next three to five years. They also identified their top three strategies to enhance revenue in 2024:
- The majority (56%) plan to expand existing service lines,
- 45% plan to implement cost-reduction measures, and
- 38% plan to increase value-based reimbursement.
This is a departure from previous years, in which executives identified outpatient service expansion, post-COVID revenue recovery and telehealth development as key growth strategies. “Health care facilities have devoted considerable effort to expanding outpatient services and offering patients more convenience,” Mackey-Ross said. “Many are now refocusing on expanding service lines that are proven revenue generators.”
Despite the optimism, two-thirds of executives surveyed said they plan to seek a new career opportunity. Of these, 12% plan to seek a new position immediately, 62% plan to do so within the next 12 months and 38% plan to do so within the next 3 to 5 years.
“Virtually everyone in health care, from clinicians to health care executives, has been under immense pressure due to the pandemic and other factors,” Mackey-Ross said. “The result is a high level of turnover that jeopardizes both administrative and clinical continuity at many health care organizations.”
High turnover rates may be one reason why nearly half of health care executives surveyed said finding candidates for leadership positions is extremely or very challenging, while only 18% said finding candidates is only slightly or not at all challenging. An additional 49% said hiring candidates for leadership positions is taking somewhat or much longer than in the past.
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Finally, more than 1 in 4 health care executives surveyed said their facilities use interim leaders. Typically, hospitals and other facilities will use interim CEOs, CFOs, mid-level managers and other executives to fill a vacancy until a permanent leader is found. Of those who said their facilities use interim leaders, two-thirds did so to temporarily fill a vacancy. Interim leaders also may be used to manage an independent project. Ten percent of those surveyed who use interim leaders did so for this reason, while 21% used interim leaders both to fill a vacancy and manage an independent project.