Ted Chien, President and CEO of SullivanCotter, discusses the challenges facing the healthcare industry in transforming how health systems are managed, care is delivered, and performance is rewarded and measured. While progress has been made in areas such as value-based care and flexible staffing models, labor shortages have emerged as a major issue. The industry is facing unprecedented labor pressures, a smaller pipeline of health graduates, and an aging population, all of which are propelling it into crisis.
The healthcare workforce is experiencing burnout and depression, with projections of significant shortages of nurses and physicians in the coming years. Without a stable and engaged workforce, health systems are limited in their ability to transform effectively. Chien emphasizes the importance of attracting and retaining talented individuals, rewarding performance, leveraging technology, and creating pipelines for future clinicians to drive true transformation.
In order to achieve value-based care goals, health systems must focus on redefining clinical performance to improve patient experience, reduce costs, and streamline care delivery. However, most current care models still incentivize clinicians based on short-term fee-for-service goals, which may not align with the long-term objectives of value-based care. Chien advocates for compensation plans that incentivize both short and long-term goals to create a sustainable balance.
Addressing the labor crisis in healthcare requires modernizing compensation and care delivery models. Simply increasing base salaries or bonuses is not enough, as talent is not readily available, and competition is high. Organizations need to shift towards performance-based rewards that prioritize affordability, quality, outcomes, and patient access. Incremental changes can be made to move in the right direction, such as redesigning physician compensation models to align with desired payer relationships and improving team-based care performance.
Embracing technology to ease administrative burdens is crucial in the face of labor shortages and workforce engagement issues. Automation of tasks can reduce paperwork and allow clinicians to focus on care delivery. Organizations must deploy technology that supports clinicians and enhances engagement while maintaining quality. Creating better pathways to employment in healthcare is also essential, as the field is expected to grow significantly in the next decade. Building a sustainable pipeline of future clinicians through initiatives such as discounted education, scholarships, grants, and early education programs is critical to supporting transformation and addressing projected shortages.
Ultimately, the shift to value-based care requires organizations to redefine performance, adjust compensation strategies, embrace technology, and invest in building a sustainable pipeline of future healthcare professionals. By doing so, health systems can attract and retain a stable workforce, deliver best-in-class care, and support the mission of not-for-profit health systems while benefiting the communities they serve.
