So how are hospitals responding? The answer no longer lies in “throwing money at the problem.” With a new generation entering the workforce, all employers—including hospitals— recognize that attracting the best talent requires more than remuneration. A carefully designed combination of pay and benefits is critical.
Of non-financial rewards, top of the list for executives are flexible working arrangements and opportunities for training and professional advancement (40% of respondents favored these measures). Hospitals also recognize the importance of ensuring that total compensation packages (including benefits) are market-leading, with more than one-third of respondents selecting this option.
2 American Hospital Association, The Cost of Caring, February 2017; www.aha.org/content/17/costofcaringfactsheet.pdf
From policy reform to business models, sweeping changes are on the horizon
With a U.S. administration that is dedicated to repealing and replacing the Affordable Care Act (ACA) and a wave of U.S. hospital consolidation that looks set to continue, change and uncertainty are part of daily life for executives in the hospitals sector.
Obviously, prospects for a changing regulatory environment cannot be ignored. Uncertainty over legislative and regulatory support for the shift to value-based care is seen as the top barrier to this transformation. And policy uncertainty appears to be slowing decision making, precipitating a review of existing strategies or causing investment plans to be put on hold.
When it comes to policy shifts, hospitals are bullish about one part of the new administration’s agenda—its pro-business stance. This may have the greatest impact for the industry in prospects for increased M&A activity. Some 73% of hospital executives (including 79% of CEOs) believe that the business-friendly policies of the new administration will favor M&A.