Healthcare is a Significant Portion of the US Economy
Leadership excellence is more important now than at any point in time for the healthcare industry. Healthcare is an enormous portion of the economy of the United States. Based on a recent HealthLeaders article (Commins, 2018), healthcare represents 18% of the US economy. Further, the Centers for Medicare & Medicaid Services project the annual growth in healthcare spending at an average rate of 5.5% over the next ten years. That means that by 2026, healthcare spending will likely exceed 20% of the US economy. Those numbers are staggering.
Changes in US Healthcare
Because of the growth in healthcare, providers are being asked to make fundamental changes to how their businesses operate. This is a systemic change that will be difficult to implement. In the US providers continue the shift from pay for procedure to pay for quality. These are complex changes that place increasing demand on healthcare leaders. First, physicians and nurses are changing how they document patient care. Second, providers are changing how patients move through the clinical setting. Finally, physicians and hospitals are adapting to payment models that reward outcomes more than volume. This is placing a tremendous strain on providers of all types. It is placing a significant strain on infrastructure such as information technology, data management, and electronic health records. Interactions and transactions within healthcare are very complex. Healthcare providers are navigating turbulent waters. Now more than ever, healthcare organizations need excellence in their leadership ranks.
Impact on Operations
As a result of these changes, healthcare providers are altering how they operate. Providers are completely changing operations to achieve the standards set by the government and insurance companies. I have had conversations with many senior healthcare leaders. We all agree that we are well beyond process improvement. To meet the demands placed on operations, we are completely redesigning patient flow.
The healthcare leaders of tomorrow face tremendous change. We must begin training leaders toto prepare now to address the impact of this change on organizational dynamics.
Leadership Excellence Required
Leadership excellence is required now more than ever because these changes are a huge undertaking. Whether you are a small medical practice or a large healthcare system the pace of change will only increase. These changes are placing greater demand on healthcare leaders. Excellence in leadership is REQUIRED to manage this change successfully. We must remember that we are training the next generation of leaders. The healthcare leaders of tomorrow face tremendous change and they must begin to prepare now to address the impact of this change on organizational dynamics. We provide you with the materials that you need to become an excellent leader.