Physicians are increasingly called upon to offer both clinical and operational expertise to ever-expanding areas of administrative responsibilities, including stakeholder engagement, human capital and clinical integration and transformation.
Last month, I took a look at these evolving titles and responsibilities of physician executives in the era of healthcare reform. In light of these changing roles, will a post-graduate management degree be an essential qualification for a physician executive to remain competitive in today’s healthcare environment? And what are the critical success factors for physician leadership development programs?
Post-graduate management degrees – do physician leaders need them?
Completing both medical and business training can be a powerful springboard for the physician executive career. The prevalence of post-graduate management degrees among physician leaders has held steady for the last several years; in the 2013 Physician Executive Compensation Survey, 40 percent of respondents held a post-graduate degree, consistent with 2011 rates.
There are strong indicators that demand for experienced physician leaders with post-graduate management degrees will be reflected in increased compensation rates. In fact, physician executives holding an MBA report a median compensation 10 percent higher than those with no post-graduate management degree, and CEOs holding an MBA reported median compensation that is 28 percent higher than those who do not.
But, despite these compensation differentials, a degree cannot replace essential on-the-job experience. Physicians must be able to demonstrate the leadership and behavioral traits that will make them successful as a leader. Forward-thinking healthcare organizations are investing in the development of high-potential physicians and offering opportunities for them to build these skills.
Critical success factors for an effective leadership development program
Developing a strong pool of physician leadership talent is a critical need of the industry as a whole. Reimbursement will increasingly depend on quality and patient safety measures, which requires a cohesive leadership team that can effectively align clinical and financial objectives.
Respondents were asked to select the areas in which supplemental training has or would enhance their skills as an administrative leader:
- Financial analysis (47 percent)
- Strategic planning (39 percent)
- Conflict resolution (31 percent)
- Project management (31 percent)
These desired skills indicate that physicians are hungry for the opportunity to lead their organizations beyond the clinical realm. Whether you build and invest in internal programs, outsource to leadership development consultants, or send your physicians to management courses or institutes, it’s essential to provide stepping stone opportunities. What is your current leadership development model?