Managing consolidation and layers of leadership when health care is in crisis

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“Healthcare organizations are in crisis,” and the COVID-19 pandemic did not make anything any easier, said Rhonda Buckholtz, CPC, president of the National Advisory Board of AAPC, the American Academy of Professional Coders. She is author of the book “Consolidation Gaps: Navigating Leadership Layers in Healthcare,” published in 2024.

There’s strength in numbers, so medical practices, hospitals and health systems all have been looking for ways to join forces and counteract problems with finances, staffing, regulatory compliance and more.

Rhonda Buckholtz, CPC

Increased consolidation across health care creates benefits and challenges for every organization and its members. Newly merged businesses must combine multiple layers of leadership to navigate pitfalls and maximize potential positive outcomes.

That multi-layered approach also can lead to gaps — areas where direction is needed, but where expertise, accountability and communication may be lacking. In her book, Buckholtz identifies those gaps, describes the best ways to recognize them, and proposes methods to inspire and enhance needed leadership.

This excerpt outlines an approach to strategic planning for health care leaders including administrators and physicians, and why they must account for the needs of patients and stakeholders.

From “Consolidation Gaps: Navigating Leadership Layers in Healthcare.”

Strategic planning provides a roadmap for healthcare leaders to make informed decisions, allocate resources effectively, and remain focused on long-term goals. Strategic planning also helps healthcare practices adapt to changing market dynamics, anticipate future trends, and mitigate potential risks.

Strategic planning starts at the C-suite — and then trickles down to the practice level and filters to the objectives identified throughout this book. Frontline/practice managers should not be developing strategic planning but should be part of the planning.

One of the primary benefits of strategic planning is its ability to align clinical goals and objectives with the needs of patients and stakeholders. Healthcare practices can effectively tailor their services to meet current and future demands by conducting thorough market analysis and understanding patient preferences. Doing so enhances patient satisfaction and ensures the practice remains competitive.

Developing effective long-term growth strategies requires careful consideration of various factors that influence the success of healthcare practices. Additionally, strategic planning allows healthcare practices to identify and address operational or financial challenges. By conducting a detailed analysis of internal processes and financial performance, clinics can identify areas for improvement and implement strategies to enhance efficiency and profitability. This proactive approach minimizes the risk of economic instability and sets the foundation for sustainable growth.

Strategic objectives define clear and measurable objectives and are essential for healthcare practices to monitor and evaluate progress toward long-term growth. These objectives can be categorized into financial, operational, and patient-centered goals, ensuring a holistic approach to planning. Setting clear and measurable goals and objectives based on the clinic’s mission and environmental analysis is essential. The goals should be challenging yet achievable and align with the mission, vision, and values. Objectives should be specific, measurable, attainable, relevant, and time-bound (SMART) to track progress and evaluate performance.

Effective resource allocation is critical to ensure the successful implementation of growth strategies. This allocation includes financial resources, human capital, technology, and infrastructure. Through strategic planning, healthcare practices can allocate resources efficiently to areas significantly impacting growth.

The strategic plan should include mechanisms for regular monitoring and evaluation to measure the success of growth strategies. Doing so allows healthcare practices to identify areas for improvement, adapt to changing circumstances, and make necessary adjustments to ensure long-term success.

Healthcare practices must continually strive for innovation and embrace technological advancements to stay competitive. Integrating digital health solutions, electronic medical records, telemedicine, and other technologies can streamline operations, enhance patient experience, and open new revenue streams.

Rhonda Buckholtz, CPC, CPMA, CRC, CDEO, CMPE, CHC, COPC, is president of the National Advisory Board of AAPC, the American Academy of Professional Coders. She operates Coding and Reimbursement Experts LLC and focuses on leadership through Maxwell Leadership Certified Team certification. She is a principal consultant for PYA. “Consolidation Gaps: Navigating Leadership Layers in Healthcare,” is available via Amazon. Buckholtz also shared her insights via the new Medical Economics Insider online magazine.