Survey: Majority of Healthcare Executives Foresee Better Organizational Health in 2024
Despite Renewed Optimism, 66% Plan to Leave Their Current Positions
DALLAS, Dec. 12, 2023 (GLOBE NEWSWIRE) -- After several tumultuous years, the majority of healthcare executives (52%) expect better organizational health at their facilities in 2024, according to a new survey by AMN Healthcare and its Leadership Solutions division, B.E. Smith. This is up from just 37% of healthcare executives who predicted that their facilities would experience improved organizational health in 2023.
“After weathering the storm of COVID-19, which combined the double whammy of revenue losses with cost increases, many healthcare executives are seeing somewhat brighter skies ahead,” said Christine Mackey-Ross, President of AMN Healthcare Leadership Solutions. “Revenues are returning and costs are stabilizing, though the challenges facing healthcare executives today remain serious and unpredictable.”
Now in its ninth year, the survey of more than 660 hospital, health system and group practice leaders indicates that while the picture may be improving, the primary long-term challenge facing healthcare facilities remains financial. When asked to project what factor would be the most disruptive to healthcare organizations in the next three to five years, more healthcare executives (44%) cited “financial constraints” than any other issue.
Top Three Revenue Enhancement Strategies
Healthcare executives were asked to identify the strategies they plan to employ in 2024 to enhance revenues. The majority (56%) plan to expand existing service lines, 45% plan to implement cost reduction measures, and 38% plan to increase value-based reimbursement. This is a departure from previous years in which healthcare executives surveyed identified outpatient service expansion, post-COVID revenue recovery, and telehealth development as key growth strategies.
“Healthcare facilities have devoted considerable effort to expanding outpatient services and offering patients more convenience,” Mackey-Ross said. “Many are now refocusing on expanding service lines that are proven revenue generators.”
Leadership Continuity in Jeopardy
The survey suggests that continuity among healthcare facility leadership is likely to be tenuous in 2024. Two-thirds of healthcare executives surveyed (66%) said they plan to seek a new opportunity. Of these, 12% plan to seek a new position immediately, 62% plan to do so within the next 12 months, and 38% plan to do so within the next three to five years.
“Virtually everyone in healthcare, from clinicians to healthcare executives, has been under immense pressure due to the pandemic and other factors,” Mackey-Ross said. “The result is a high level of turnover that jeopardizes both administrative and clinical continuity at many healthcare organizations.”
The survey indicates that healthcare executives seeking new opportunities may have job offers from which to choose. The majority of those surveyed (79%) said they have been approached about a new job opportunity within the last six months. Sixty-two percent of those surveyed said they were approached about a new opportunity but did not pursue it, while 17% said they were approached about a new opportunity and did pursue it. Only 21% said they were not approached about a new opportunity.
High turnover rates may be one reason why 48% of healthcare executives surveyed said that finding candidates for leadership positions is extremely or very challenging, while only 18% said finding candidates is only slightly or not at all challenging. An additional 49% said that hiring candidates for leadership positions is taking somewhat or much longer than it has in the past.
When asked what factors would be most likely to cause them to stay with their current organizations, 45% cited organizational culture as among the top two factors, while 41% cited compensation.
Use of Interim Leaders
Over one quarter of healthcare executives surveyed (26%) said their facilities use interim leaders. Typically, hospitals and other healthcare facilities will use interim CEOs, CFOs, mid-level managers and other executives to fill a vacancy until a permanent leader is found. Of those healthcare executives who said their facilities use interim leaders, 66% did so to temporarily fill a vacancy. Interim leaders also may be used to manage an independent project. Ten percent of those surveyed who use interim leaders did so for this reason, while 21% used interim leaders to both fill a vacancy and manage an independent project.
A copy of AMN Healthcare’s Healthcare Leadership Trends for 2024 survey may be obtained at https://www.amnhealthcare.com/amn-insights/executives-leadership/blog/healthcare-leadership-trends/
About AMN Healthcare
AMN Healthcare is the leader and innovator in total talent solutions for healthcare organizations across the United States. The Company provides access to the most comprehensive network of quality healthcare professionals through its innovative recruitment strategies and breadth of career opportunities. With insights and expertise, AMN Healthcare helps providers optimize their workforce to successfully reduce complexity, increase efficiency and improve patient outcomes. AMN total talent solutions include managed services programs, clinical and interim healthcare leaders, temporary staffing, permanent placement, executive search solutions, vendor management systems, recruitment process outsourcing, predictive modeling, language interpretation services, revenue cycle solutions, and other services. Clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, schools, and many other healthcare settings. AMN Healthcare is committed to fostering and maintaining a diverse team that reflects the communities we serve. Our commitment to the inclusion of many different backgrounds, experiences and perspectives enables our innovation and leadership in the healthcare services industry. For more information about AMN Healthcare, visit www.amnhealthcare.com.
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