Perspectives
Is Your C-Suite Turnover Proof?
CEO turnover is on the upswing, according to the latest turnover study from the American College of Healthcare Executives (ACHE). Turnover ranged between 14 and 18 percent in the 10 years between 2002 and 2012 (http://www.ache.org/pubs/Releases/2014/hospital_ceo_turnover_rate14.cfm), but surged to 20 percent in 2013—a record high, according to ACHE (http://www.beckershospitalreview.com/hospital-management-administration/hospital-ceo-turnover-hits-record-high.html).
The entire healthcare C-Suite faces turnover. Executives in traditional C-Suites roles, including COO, CFO, CHRO, CMIO, CNO and CNIO, depart HCOs for higher-level positions. Meanwhile, CEOs continue to consolidate positions responsible for hot-bottom issues like value-based, accountable care, performance management, population health, patient engagement and clinical integration and alignment.
And then there are the newcomers—chief officers or executive and senior vice-presidents of patient experience, data analytics, technology, incentives, knowledge, security and privacy and performance.
Despite the retirement of some Baby Boomer C-Suite executives, HCOs face serious issues ranging from consolidation, cybersecurity and financial viability, to consumerism, technology and new regulations from the Centers for Medicare and Medicaid Services (ICMS). How do members of the C-Suite navigate an environment transformed by value-based payment, performance measurement and reporting and intense competition from retail, urgent and home care?
Hospitals, health systems, medical groups and payers that once sought C-suite executives with expertise in operations, finance, marketing, human resources, informatics and medicine now seek professionals with added competencies in technology planning and implementation and data analytics, according to the October 2015 Black Book Executive Survey (http://www.prnewswire.com/news-releases/the-fast-track-to-the-hospital-c-suite-annual-black-book-executive-survey-reveals-technology-deployment--advanced-analytical-skills-are-in-high-demand-300161331.html).
Eight percent of hospitals with more than 200 beds sought a C-Suite executive who would spearhead the selection of tech vendors and implement clinical and business systems. Hospitals that rely on interim CIOs, CFOs and CEOs also reported a strong preference for candidates with technology expertise and experience.
Executive search consultants rank the following competencies as most vital to healthcare C-Suite executive searches conducted in 2015:
- Technological and data/systems management
- Advanced analytics
- Deployment and execution
- Strategy/planning/marketing
- Finance and reimbursement
- Leadership
- Relationships and teambuilding
- Communications
- Change management
While not every HCO operates with the same C-Suite executive wish list, all tend to seek candidates with the following competencies:
Turbocharge with tech: Technological knowledge, skill and experience are essential. HCOs seek candidates who display an understanding of technologies poised to enhance the HCO’s clinical, financial and operational performance.
Analytics matter: HCOs look for executives who can share insights on how they’ve harnessed, analyzed and used data to enhance clinical and business performance in areas ranging from human resources, marketing and finance, to population health and accountable care.
Deployment counts: The best C-Suite executive candidates share stories and case examples of how they implemented projects, programs, plans, strategies and systems. They know how to move from needs assessment, task force development and planning, through training, promotion, testing and launch.
Strategy reigns: HCOs want C-suite executives who can differentiate between long-term strategic thinking, planning and implementation and a string of unproven quick fixes. The best candidates understand where the HCO is headed and how it will get there via C-Suite leadership.
Dollars dominate: Every C-suite executive needs a solid grasp of finance and reimbursement--from accounting, revenue cycle management, supply chain and capital, to the basics of Medicare, Medicaid and private payer reimbursement.
Lead forward: HCOs seek C-Suite executives with the presence, insight and skill to lead clinicians, employees, patients and consumers. That, in turn, requires demonstrated expertise in collaboration, partnership, motivation and articulation of a vision for the HCO and healthcare system.
Teams win: The best healthcare C-Suite executives achieve top clinical and business performance goals via relationships. They freely interact with C-Suite colleagues, employees, clinicians, board members, employers, government professionals and community residents. And they design and build teams that address challenges and improve outcomes.
Communication rules: HCOs seek C-Suite executives who are seasoned communicators. Whether they’re listening in on a nursing task force or addressing a group of cardiologists, these executives speak and listen with humility, compassion, optimism, goodwill, forgiveness and emotional stability.
Change happens: The most qualified C-Suite executives understand the inevitability and dynamics of change. They grasp the importance of sponsorship, buy-in, engagement, impact assessment and communication in making change possible.
Resources
10 statistics on CEO turnover, recruitment
Hospital CEO turnover-2016
http://www.modernhealthcare.com/article/20160319/DATA/500035818
Dramatic changes in C-Suites predicted
Technology is changing the C-Suite landscape
http://www.healthcareitnews.com/news/study-reveals-technology-deployment-changing-c-suite-landscape