The healthcare industry is changing rapidly, and the leadership of health organizations can sometimes be a revolving door. A popular emerging trend is the use of interim executives to fill leadership roles within large organizations.
Lisa Flavin, a consultant with executive search firm Witt/Kieffer talked to Healthcare Finance News about why hospitals and healthcare organizations should be using interim executives.
1. Get help before running aground
The most obvious and probably the biggest reason why hospitals and health organizations bring in interim executives is to right the ship in dire situations. “They are looking for people who will present something specific,” said Flavin. “They’re looking for a turnaround agent.”
Flavin said hospitals or organizations looking for someone to turn around a specific area, such as finance, look for interim executives that have expertise in that area and can help create public confidence. “They’re looking for a hired gun,” she said.
2. Keep business moving during the hiring process
Executive searches can take an enormous amount of resources and an astounding amount of time. Flavin said it’s important for solid leadership to be in place until a long-term solution has been identified. “It lets the search go on a rigorous course,” she said. “If there’s a vacuum, an interim executive can be a great choice.”
3. Avoid political conflict
The politics of executives looking for long-term positions within organizations can get in the way of the actual search or the job requirements, Flavin said. Interim executives can come in and do their job without worrying about playing the political game with other stakeholders at the organization. “They don’t have an agenda,” Flavin said. “They have no skin in the game, politically speaking.”
4. It’s all in the numbers
According to Flavin, there is an abundance of seasoned healthcare executives out in the market right now. That abundance is primarily because of the recent economic recession that caused many organizations to downsize. This means there’s an increase in executives that are willing to take temporary work.
5. Cash is king
A large reason an organization may bring in an interim executive is to raise cash, Flavin said. Flavin said interim executives are utilized to raise cash for many reasons, such as seeing a company through an IPO or just raising capital to help stay afloat. “They will hire an interim to get them over the hump,” she said.