In an era where legacy structures can no longer keep pace with rising costs, workforce disruption, and rapidly evolving technologies, healthcare leaders are reimagining the very core of how their systems operate.
Trampas Hutches, regional president of MaineHealth’s mountain region, is doubling down on redesigning the workplace. His teams are going beyond improving workflows to fundamentally transform them with an eye on speed, simplicity and sustainability. This is especially important because while hospitals on average have experienced slight margin gains in the last year, the future of Medicaid and other hospital funding mechanisms is uncertain.
“Our top priority is instilling radical rigor around our fixed cost structure and operational efficiency, because margin is mission, and the old playbook won’t carry us forward,” he said. “At the same time, we’re driving cultural change that rewards resilience, future-mindedness and the courage to challenge ‘how it’s always been done.'”
MaineHealth changed its governance model to reflect the operating model three years ago. The system used to have community hospital boards and now has three regional boards, leading to improved strategic planning, resource utilization and team effectiveness. Now, amid much uncertainty in the healthcare and political landscape, the leadership team continues to simplify their message.
“In a noisy world, we’re choosing clarity – staying laser-focused on execution, elevating what matters most to patients and staff, and building a health system ready for the next decade, not the last one,” said Mr. Hutches.
Technology is driving change in the workforce as well. Health systems are incorporating new AI-driven tools to automate repetitive tasks and expect their broader teams to become AI literate as a strategic imperative. Hospitals operating on thin margins are finding ways to extend capacity by incorporating virtual care and home monitoring into their services.
“As we look to the future, we will need new solutions to overcome clinical and operational challenges, recruit and develop our workforce and achieve our health equity goals,” said Matt Walsh, executive vice president and COO of Rush University System for Health in Chicago. “Today’s success will not carry us to tomorrow’s demands. As price pressures continue, the healthcare labor market sinks and demand from an aging population grows, the status quo won’t hold.”
Mr. Walsh said from the operations standpoint, Rush is reimagining processes for investing in the health and wealth of the community and partnering with new organizations to build on recent successes. The system’s long-term strategic planning will require more innovative and bold ideas, he said, to add jobs and improve operations while saving money; the short term plans are equally as important.
“Our near-term priority is achieving greater operational excellence by fully integrating our system and capitalizing on people, process and technology, led by AI, to exceed the expectations of our patients, employees and learners,” he said.
Atlanta-based emory healthcare is prioritizing the patient experience and operational efficiency to create a unified, high-reliability healthcare system. They are investing in the workforce, well-being and culture to sustain higher performance regardless of economic and policy shifts.
“Our people are our greatest strength,” said Heather Dexter, president of the regional hospital division for Emory Healthcare. “As healthcare continues to face unprecedented change, it’s critical that we double down on building a culture that fosters trust, inclusion and resilience.”
Emory is also investing in leadership development and recognition programs to reinforce the cultural belief that teams should feel “seen, supported and empowered to lead change.”
“Together, these priorities reflect our unwavering commitment to delivering exceptional care while building a stronger, more agile health system for the future,” said Ms. Hutches.
Physician groups are rethinking their strategy as well. The old employment and alignment models aren’t working today, and health systems that don’t adapt risk deepening provider shortage issues. Kristopher Doan, president of the Augusta Medical Group at Augusta Health in Fisherville, Va., said his top priority was establishing a new leadership structure for the organization, surrounding himself with physicians and advanced practice providers to shape the future.
He is also working on more flexibility in the provider model.
“This is not an easy endeavor as we have always been taught standardization is the key to efficiency,” Mr. Doan said. “Well, when you are so rigid in standardization that it results in provider turnover, you start to think differently about offering flexible employment. This is a culture shift – for the leadership team, for providers, for patients. But we must adapt to the needs of a changing workforce.”
