The consultants at Yaffe & Company discuss recent CEO turnover rate trends in the healthcare industry and explain the necessary steps organizations must take to recruit the next generation of effective hospital leaders.
As hospitals and other healthcare providers aim to consolidate and merge, the turnover rate of CEOs within the healthcare industry continues to grow. According to the American College of Healthcare Executives, CEO turnover reached 18 percent in 2014, one of the highest rates in 15 years.
This developing trend within the industry has initiated a fundamental shift in executive recruitment strategies at hospitals and other healthcare organizations. As one CEO steps down, or is let go after a merger, it is imperative that the newly formed organization work quickly to determine what qualities they want in their future leaders.
The current revolving door of healthcare CEOs has put a greater emphasis on many organizations to reassess and potentially redefine their overall mission, ideals and core values. In many ways, recruiters are assembling a “legacy team” of future executives for their organizations. The focus is now on getting potential leaders to “buy in” to the long-term goals of the organization, rather than the objectives of the current CEO’s regime.
New leaders in the industry must be flexible and maintain an open-mindedness that was not necessarily essential in the past. This new generation of healthcare executives will be composed of creative thinkers and informed professionals with a broad set of abilities. Many organizations will seek leaders with expertise in information technology, as the impact of technology in the healthcare environment continues to grow exponentially.
Clinical experience has also become heavily valued within the industry. As a result, healthcare systems will also look to increasingly develop physicians into administrative leaders to assume more influential, managerial roles.
Creating a comprehensive succession plan for all members of an organization’s senior management is a key step in ensuring smooth executive transitions in the future. When developing a strong team, it is important for hospitals to build meaningful bench strength throughout all levels of operation.
In order to identify prospective leaders within an organization, hospitals must conduct a thorough internal evaluation. A search of this manner will allow organizations to identify the talent currently on hand and allow the Board of Directors to grasp a better understanding of what leadership skills are needed from the outside to effectively compliment their internal leaders.
By keeping these strategies in mind, your organization will have a leg up during the recruitment process of the healthcare industry’s most qualified and inventive leaders of the future.
For more information on current management trends in the healthcare industry and effective recruiting strategies for your own healthcare organization, contact the consultants at Yaffe & Company today.