My Medical Panel
Url 1: Empowering Doctors: The Role of Business Acumen in Healthcare Leadership

Empowering Doctors: The Role of Business Acumen in Healthcare Leadership

Doctors in business discussing strategies

The healthcare industry is shifting rapidly. Imagine this -- an individual can spot a symptom on a fitness tracker and dial-up their doctor for a quick diagnosis through teleconferencing. Acquiring business acumen to manage their independent clinics, offline or online, has become the need of the hour for doctors. Continuous development in technology and evolving business strategies to put yourself in front of the patient is not helping their cases either.

In medical schools, it’s all about medicine, while in residency, about orthopedics. Most doctors are not taught management skills in medical school. Leadership skills such as how to allocate short- and long-term resources, how to provide developmental feedback, or how to effectively handle conflict that is needed to run a vibrant healthcare business are not part of the curriculum.  

Leadership in Healthcare 

Rising pressure to achieve better medical outcomes with increasingly limited financial resources has created an acute need for more doctors in business. “The complexities of delivering medical care are rapidly changing,” says Dr. Richard Pitts, vice president of clinically integrated networks and senior medical director at St. Joseph Heritage Healthcare, which is part of an 11-state, 50-hospital health system. “There’s a constant pressure to find more effective ways to deliver healthcare while improving quality and still holding the line on costs.”

Several studies such as this point out that doctors like to be guided by other doctors regarding decisions about redesigning health care delivery and balancing quality and cost. They disregard the opinion of other leaders, who lack clinical expertise when it comes to the matter of cutting costs and providing quality healthcare. And yet, there is a gaping hole for doctors in leadership roles in the industry.  

 

Leadership should become an integral part of the curriculum in med schools

As Dr. Pitt points out, “Paying attention to the best treatments, along with the cost of those treatments, requires both business and medical skills”.

It’s not an easy problem to fix because of the contrast between the medical and business industry. Reinforcing our point further, in Med schools, students have to do what’s correct and adhere to strict procedures and there is very little room for creativity. Medical students learn by rote –- memorization based on repetition.

But for business students, education happens through case studies, analysis, and discussion. 

We are not advocating doing the same for med students because no one would be comfortable with a novice surgeon who decides to employ a new, “Creative” surgical approach that hasn’t been tested. 

But there should be an approach which kindles curiosity and critical thinking among medical students.

This is the dilemma. The amalgamation of healthcare and business is an uphill battle that can only be fixed if we start from the bottom of the hill.

Why should a doctor learn business skills?

Now that we have established that there is a dearth of leaders in the Healthcare industry, let us dive deeper and explore five reasons why a doctor should jump on this glorious opportunity to be one.

 Doctors have to wear multiple hats 

1.  Ability to analyze large chunks of data

Analytics can assist physicians in identifying disease outbreaks, tracking health epidemics in real-time, and providing patients with more personalized care. However, achieving those objectives necessitates developing a data mindset and learning how to recognize trends, analyze relationships between variables, and estimate the accuracy of statistics.

As the saying goes, ‘Data is the new King,’ and the ability to analyze data is undoubtedly a king’s crown jewel. If you can find the needle in a haystack and concentrate your business strategies around that,  you gain an upper hand over your competitors.

2. Strong grip-hold on finances

We have already established how intent Healthcare organizations are on cutting costs. It is more economically sustainable in the long run for a healthcare organization to have a single, highly competent physician leader overseeing the business and carrying both clinical and administrative responsibilities, rather than bifurcating the role.

There are two explanations for this: One is that you don't need to pay two leaders to do the task of one highly effective leader. The second benefit is that it can reduce physician turnover (and hence the expense of recruiting) while also improving morale.

3. Leading large and diverse teams 

According to the New England Journal of Medicine, physicians who want to lead effectively must understand how to “create a team culture of feedback to improve patient care.” Understanding what motivates the team, requesting opinions and adopting suggestions regularly, providing continual feedback, and praising accomplishments while constructively addressing the team's faults are all part of this.

In large healthcare organizations, there are tens of hundreds of employees to take care of, and being compassionate and emphatic while making practical decisions whenever required is not an easy task. Running a healthcare business can be emotionally draining, and you have to be prepared for that.

4. Clear vision

Defining the mission of the organization and then building upon it is of utmost importance. You have to be the Chief Vision Officer (CVO) of what to do and what not to do, on what to pursue and what not to pursue. You have to make sure that everything that happens is in line with the company’s mission while also moving the company forward.

The demands and priorities of departments grow as teams grow. Leaders need to strategize and create a framework for their organizations not only to guide their teams but also to help their employees.

5. Becoming a better communicator 

Effective communication skills can take you far, in both healthcare and business. Communication and collaboration skills are paramount, where it is with key stakeholders or with team members, or even with your patients. Many health care leaders say courses in managing others, leading teams, and communicating effectively should become part of the required medical student and resident curriculum.

Christopher Myers, Ph.D., a faculty member at the Johns Hopkins Carey Business School and School of Medicine says that “The things that are harming patients these days are often linked back to issues of management, of communication and leadership more often than they are linked back to incorrect clinical care”.

That wraps up our discussion on why doctors need to gain business acumen. Do you think you are ready to lead your colleagues? If not, it’s never too late to go back to school and learn a few important lessons!