Becker's Hospital Review

17 CEO / STRATEGY Webber, director of pharmacy business at Novant Health in Winston- Salem, N.C. "e Inflation Reduction Act will reshape reimbursement dynamics, requiring pharmacies to navigate increased administrative complexities while ensuring patient access to critical medications, making preparation for 2026 a key focus for 2025. Preparing for these challenges involves advocating for policy stability, optimizing 340B program management, and implementing data-driven strategies to mitigate patient disruption and maintain access to care." 7. Supply chain. Hospital and health system leaders navigated a variety of supply chain issues in the last year, including an IV shortage aer a manufacturing plant operations were disrupted during a hurricane. e cost of drugs and medical supplies remain high, and several supplies have remained on the shortage list over the last few years. "Cost pressures will dominate, with scrutiny on care models, high-cost drugs, and potential supply chain disruptions," said Marschall Runge, MD, PhD, CEO of Michigan Medicine. Increased coordination and preparation for supply shortages could help in the near term, but more long-term solutions are needed industrywide. 8. Cyberthreats. Cyberattacks against hospitals and healthcare providers in the last year continued to rise, with both small hospitals and large health systems falling victim. Hackers are using AI for more targeted attacks and are branching out to hit third party vendors as well. In the last year, St. Louis-based Ascension and Optum's Change Healthcare had operations disrupted by ransomware attacks that affected hospitals across the U.S. C-suite executives are spending big to keep their organizations safe despite talent shortages in the space. "In our increasingly digital world, safeguarding patient data is not only a technical necessity but also a moral imperative," said Richard Isaacs, MD, dean and senior vice president of medical affairs and chief academic officer of California Northstate University College of Medicine in Elk Grove. "e frequency and sophistication of cyberattacks are on the rise, compelling us to remain vigilant and proactive in protecting sensitive information." 9. Access to care. Increased patient demand, even in markets where the population isn't increasing, will be a challenge for hospitals already at capacity. Sprawling health systems are approaching access issues by adding clinics, virtual care and partnerships with local physician groups to keep care in the right settings and close to home for patients. "One of the top priorities will be improving and increasing access to care. at encompasses improvement in the existing care models but also leaning into the development of alternate care models that allow for greater access to care; this includes enhanced virtual health opportunities, robust hospital at home models and other innovative solutions," said Diane Lynn, assistant vice president of global health at Charlotte, N.C.-based Advocate Health. 10. Private equity. One of the biggest stories of 2024 was Steward Health Care's bankruptcy and subsequent sale or closure of the for-profit system's hospitals. Steward previously had private equity backing and its failure raised questions about private equity in the industry. However, several private equity companies continue to make investments in hospitals, physician groups and other healthcare- related businesses, and some in the nonprofit sector are concerned. "e healthcare market is pivoting towards more private equity and venture capital investments looking for returns. is shi of ownership oen compromises indigent and underserved care," said Dr. Shah. "e non-for-profits in the market end up taking the brunt of this payer mix which continuously constrains the financial health of the organization. e anticipated complexity is that an increase in volumes of patient care requires upended staffing with reducing reimbursements to cover the costs." n For CEOs, results still outshine soft skills By Molly Gamble N ew research reveals that companies continue to prioritize execution and strategic leadership in their CEO hiring decisions, despite widespread claims that modern leaders should focus more on interpersonal and "soft" skills. The finding comes from University of Chicago and Dartmouth College researchers, who published in a working paper with the straightforward title "Have CEOs Changed?" The study analyzed nearly 5,000 executive assessments from 2001 to 2019. The assessments, conducted by a consulting firm specializing in executive evaluations, measured traits such as analytical thinking, charisma, and interpersonal abilities. Researchers grouped these traits into four categories: general ability, execution versus interpersonal skills, charisma versus analytical thinking and creative-strategic versus detail-oriented approaches. The findings show that CEOs hired during this period consistently outperformed in execution and strategic leadership, with no notable increase in interpersonal skills over time. The research also highlights shifts in CEO traits before and after the Great Recession. On average, post-crisis CEO candidates demonstrated lower overall ability, were more execution-oriented, less charismatic and less creative or strategic than their pre-financial crisis counterparts. While traits like charisma and creative-strategic thinking were more prominent in CEOs hired before the crisis, these qualities declined slightly in importance in recent years. The researchers suggest this trend may be due to a shrinking pool of candidates with exceptional strategic skills, even as companies maintain their focus on execution-oriented leadership. The discovery that interpersonal or "soft" skills have not increased over time among CEO candidates or hires challenges the notion that CEOs must emphasize collaboration and empathy to align with the evolving expectations of millennial and Gen Z workforces. n

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