The healthcare industry may be going through a period of uncertainty and tremendous transformation, but some CEOs of healthcare companies are expressing confidence in the future.
Twenty-eight percent of healthcare executives are “significantly more confident” than they were a year ago about growth in the healthcare industry and 41 percent are “somewhat more confident,” according to professional services company KPMG.
A CEO survey from KPMG took the temperature of 400 executives across a number of industries in the U.S. Sixty-one of those surveyed executives are from the healthcare industry. They represent a range of fields, from biotech to health systems, and run companies with more than $500 million in revenue.
Among the survey’s results are these revelations:
85 percent of the surveyed healthcare executives expect to expand hiring in the next three years. A majority of those executives indicated that hiring growth in the next three years will increase between 6 percent and 10 percent. 34 percent of CEOs said they are considering spending more time with government officials and regulators. Thirty-three percent said their organization has no formal, company-wide process for innovation nor has any plans on developing such a process. 20 percent said their company has a process and has begun implementation and 11 percent said their process is fully developed and under way. Most innovation is driven by an executive team or from the bottom up rather than by the CEOs. Improving existing products or services and improving year-over-year growth and profitability are the two largest drivers of innovation. CEOs said the top barriers to innovation are rapidly changing customer dynamics, budget constraints and a lack of a formal innovation process or plan.