Becker’s Healthcare’s CEO + CFO Roundtable is an opportunity for hospital leaders to share ideas on the most pressing issues in healthcare. The 11th annual edition took place November 13–16 at the Hyatt Regency in Chicago and brought together more than 1,000 executive-level attendees and over 425 speakers.
And what’s on the minds of health system leaders? Consumerism was a recurring theme. Attendees seemed keenly aware that patients expect better access to care and more convenient ways to engage with their providers. Artificial intelligence (AI) was another hot topic, with attendees pointing to the potential of cutting-edge technology to help providers work at the top of their license while opening up new channels for patients to seek care.
But the issue that seems to be keeping most CEOs awake at night? That would be the provider workforce shortage. Pandemic-induced burnout, administrative burdens, and an aging workforce continue to complicate provider recruitment and retention, and health systems are looking for innovative ways to meet their communities’ healthcare needs.
All of that has led to fierce competition for physician talent—and health system leaders need to ensure their investments in their physician enterprise will lead to value in the long term.
(Malita Scott, Dan Harrison)
Malita Scott and Dan Harrison, both partners at ECG, addressed these topics during a roundtable session titled How Will You Drive ROI from Your Physician Enterprise? Below are three takeaways from their conversation with more than 25 hospital and health system executives.
1. Understand physician employment trends—and what’s behind them.
Physician employment continues despite record investment per FTE. Health system leaders have begun to explore a multitude of alignment models and are investing in alternatives such as management services organizations (MSOs) and joint ventures.
But as system leaders consider how best to align with providers, they need to understand physicians’ motivation. One attendee commented on new graduates’ preference to be employed, and Malita noted that younger physicians are placing a premium on work-life balance. Health systems have often struggled to strike that balance. But in an increasingly competitive marketplace, organizations that can identify workforce trends, understand the drivers behind them, and find the intersection between physicians’ objectives and their own strategic goals will become destinations for providers.
2. Keep a balanced scorecard.
In a pre-roundtable survey, a number of attendees acknowledged the need to more clearly articulate the return from their investment in their physician enterprise. However, few feel prepared to effectively measure physician enterprise value.
Measuring and tracking physician enterprise investments is a challenge for many organizations. Dan and Malita advised taking a structured approach when evaluating value of physician enterprise:
- Establish system-wide expectations. Each organization’s mission and strategy will influence how much each area contributes to the perceived ROI for the physician enterprise.
- Measure the investment. You can’t determine the value of the physician enterprise without tracking and measuring your comprehensive investment in it.
- Evaluate areas of return. Consider quantitative (e.g., network integrity, cost of care, population health and care management) and qualitative factors (e.g., academics and clinical excellence, community need, consumer engagement) when evaluating ROI.
Utilizing a consistent framework enables leadership teams to prioritize short-term needs and long-term strategies.
3. Don’t let competitors drive your strategy.
Competition for provider talent is prompting some health systems to make decisions that may not be in their best interest. Several attendees commented that they’ve seen health systems make significant investments in physician groups with little consideration for how they align with the system’s long-term strategy—primarily because they’re concerned about losing volumes if a competitor pounces.
But with a clear picture of your physician enterprise investments and a data-driven growth strategy in place, you can avoid being pressured into investing in a physician group that doesn’t align with your organization’s objectives.
Competition for physicians is sure to intensify, but having a strategy in place will help you understand the value a physician group can provide—to your organization and the community it serves.
Published December 8, 2023
