"The Ronan Report" provides insight about the activities at the Western Maryland Health System in Cumberland, Maryland, and about the changes taking place in healthcare today from a CEO's perspective.

Tuesday, April 29, 2014

CEO Exodus

I read this AM that the health care industry has experienced its highest rate of CEO turnover in 30 years.  Yikes!  Twenty percent of all hospital CEOs were replaced in 2013 according to the American College of Healthcare Executives. Apparently, the reasons are related to mergers, acquisitions and alliances as well as changes in how care is currently or is going to be delivered.  

Many CEOs, such as myself, had evolved in a fee-for-service environment, where volume was the driver of health care services and revenues.  They now see the new approach to care being delivered based on value as too much of a challenge.  Not me.  I have embraced the change and feel that care is being delivered better than ever at WMHS.  I have heard from a number of colleagues that the adjustment will be too difficult and they are leaving the C-Suite.  Some have said that they will go into consulting.  I not sure as to their areas of expertise in that every aspect of health care is changing from Finance to Governance to Operations to Patient Engagement to Service Delivery to Patient Care.  

If you fail to embrace the new direction of health care delivery, you will fast become that proverbial "dinosaur" and that's sad.  Never has an industry changed as dramatically as health care is changing today and into the future.  I wish them luck in their transition.

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