A Look around the Corner
Healthcare CEOs perspective on the future
Report shares CEO interview results about acute health care sector's future
Health system CEOs and their organizations face challenges that are at once unprecedented, predictable, and unknown - a “new normal” that represents the biggest test thus far in their professional careers.
A look around the corner: Healthcare CEOs perspective on the future an Issue Brief from the Deloitte Center for Health Solutions, presents the results of Deloitte's interviews with 24 CEOs of acute-sector hospitals and multi-hospital health systems, looking at the short-term (next three to five years) and long-term future (to 2020).
Among the report's key findings:
- Health system CEOs are guardedly optimistic that their organizations will survive and thrive in the future, but anticipate that necessary changes may challenge their leadership.
- Among areas demanding CEO attention include cost structure sustainability, board readiness, and strategic investments in HIT and clinical program innovation.
- CEOs say their major challenges are primarily internal and include workforce training and development, IT integration, clinical services upgrades and expansions, physician alignment, and cost reduction.
- CEOs are not fixated on health care reform; they understand it but are more concerned with market and fiscal pressures at the state and federal levels.
- Market pressures are significant. Concerns include traditional and nontraditional competition; risk-based contracting; health care reform; state Medicaid payments, scheduled Medicare cuts, and pressure from consumers.
- CEOs believe that merger/consolidation in the delivery system and new models for physician engagement are necessary changes. Also, HIT investments are “table stakes” that may defer capital investments in other areas of opportunity.
Health system CEOs want to play offense; not defense. They expect to concentrate their efforts in four areas: innovate the operating model, reduce costs, add core competencies to fill gaps, and create a vision for the “new normal.”
To read the full Issue Brief, please download the attachment.