Health system C-suites went through the ringer last year.
Many overcame cybersecurity threats and revenue cycle disruptions related to the Change Healthcare hack. Others saw the local healthcare ecosystem change as hospitals closed or cut services and former disruptors–including Amazon, Walmart and Walgreens–made significant changes. Artificial intelligence has also moved at lightning speed to introduce new capabilities, and risks, for clinical care and hospital operations.
Staff shortages, rising expenses and regulatory changes are significant long-term issues at the top of health system leaders’ minds. As they face these challenges, the one-word mantra has become: agility.
“The most valuable lesson I learned in the past year is that agility in decision-making is just as critical as having a well-defined strategy,” said Biju Samkutty, COO of Mayo Clinic in Rochester, Minn. “In a rapidly evolving environment, lengthy planning cycles and excessive consensus building must give way to iterative execution, data-driven insights and cross-functional collaboration.”
Mr. Samkutty said empowering teams with objectives and autonomy can drive the best outcomes in today’s healthcare landscape and speed progress to goal.
“Talent and culture remain the greatest competitive advantages,” he said. “While technology and processes can be replicated, an engaged and adaptable workforce drives transformation. Ultimately, success lies in balancing a long-term vision with the flexibility to pivot as needed.”
Steve Davis, MD, president and CEO of Cincinnati Children’s realized restructuring decision-making with the rapid pace of change was essential.
“The pace of change in healthcare is accelerating, making traditional change management approaches inadequate,” he said. “Instead of rigid, top-down strategies, we must foster agility, resilience, and adaptability within our workforce. Change is no longer episodic; it’s continuous and will only intensify.”
CEOs and leaders of health systems are transforming their culture for long-term success. That means reorganizing leadership structures, strategic hiring and promoting from within.
“Thriving organizations will be those that cultivate a culture of adaptability, empowering teams to navigate uncertainty, embrace innovation and iterate quickly,” said Dr. Davis. “Our focus must shift from managing change to building the capacity to sustain it.”
Ashwani Bhatia, MD, CEO of BayCare Clinic in Green Bay, Wis., also mentioned the importance of embracing discomfort to thrive in the challenging healthcare landscape.
“Navigating rapid advancements in AI and the accompanying ethical concerns, adopting new technologies and managing the rising labor and supply chain costs amid increasingly stringent payer reimbursement rules all stressed the necessity of adaptability,” he said. “Operational agility is no longer optional – it’s essential. The only way forward is to embrace change, prioritize workforce wellbeing, and strategically leverage technology to support and empower our caregivers.”
Peoria, Ill.-based OSF HealthCare is navigating similar challenges after seeing reduced services and outright closures of facilities within their communities creating “clinical deserts” for specialties, including obstetrics. Bob Sehring, CEO of OSF HealthCare, said his team is working on filling the gaps for people who need care and overcoming evolving workforce challenges, supply chain disruptions and vulnerabilities
“We can’t get comfortable or complacent – agility is required by all organizations,” he said. “This may be most critical for healthcare systems because our employees, patients and their families deserve that and depend on it.”
But nimbleness in the face of change is most beneficial when its strategic. Strong leaders will help their teams evolve smartly, not just rapidly.
“Perhaps the overriding lesson, even in light of some remarkable achievements in the past year, is that while agility and resourcefulness are crucial, they are ideally utilized in a measured manner,” said Cliff Megerian, MD, CEO of University Hospitals in Cleveland. “This continues to become more apparent. We’ve seen that it is best to avoid being overly reactive so we are opting to respond in thoughtful and measured ways.”
The thoughtful approach is especially important given the tough economic landscape, which Dr. Megerian said is “both complex and increasingly unpredictable.”
“Managing multiple priorities is necessary, but we have seen how embracing too many initiatives can lead to diluted efforts,” Dr. Megerian said. “Effective execution will require, and receive, our focus and clarity. A disciplined approach to prioritizing is vital so that critical objectives will receive the necessary resources and attention. The narrowed focus we follow will then lead to demonstrable success that can and will spur more of the same.”
