For the first time in many years, the American College of Healthcare Executives held its annual prestigious Congress on Healthcare Leadership in a new location – Houston, TX, the Bayou City. The venue proved to be popular as more than 8,000 healthcare executives from across the country and around the world convened to hear the latest updates and learn from innovative leaders from inside and outside the healthcare sphere. Three of us from HealthSearch Partners – Ivan Bartolome, President and CEO, Neill Marshall, Chairman, and Kurt Mosley, Associations Practice Leader — were pleased to be in Houston. Here’s what we heard from leaders of healthcare organizations, large and small.
Washington’s Erratic Pulse Is Causing Uncertainty and Concern
The rapid pace of action of the new administration is sending shockwaves through the healthcare sector. While the administration has not yet implemented significant changes to programs like Medicare and Medicaid, the first two months of the new administration have already created considerable disruption to the nation’s healthcare infrastructure, both private and public. Looming cuts in both funding and manpower were key concerns for executives attending Congress. Medicaid cuts were a primary concern of leaders, especially those from states where Medicaid has been expanded.
A recurring topic of discussion among attendees was the palpable uncertainty surrounding the recent funding cuts and layoffs in the healthcare sector and their potential impact on hospitals and health systems. Despite much discussion, it is clear no one seems to have a clear answer. The consensus, however, is that these changes likely won’t translate into increased funding for most healthcare organizations. We also spoke with the health system leader of a major consulting firm, who shared a telling insight: since February, his firm has seen a surge in client inquiries, jumping from three or four calls a month to at least one per day. This underscores how anxious healthcare leaders are about successfully navigating the evolving landscape.
Bill Arbitration: A new provider model that is sparking debate
One particularly intriguing topic was the rise of a new provider model inspired by the Hospital Price Transparency Act. In this model, some providers are operating intentionally out of network to secure significantly higher reimbursements through a process called bill arbitration. It’s a strategic and controversial move that seems to be gaining traction.
Artificial Intelligence: Who’s watching whom?
Another frequent topic of discussion among leaders was the use of artificial intelligence. The landscape of AI has undergone significant shifts from the Biden administration to the current administration. The Biden administration pushed a concerted effort to promote ‘safe, secure, and trustworthy’ innovation and use of artificial intelligence. An executive order was signed by the new administration to negate these policies. The goal of the new executive order is to reduce government oversight to help foster AI innovation worldwide. Concerns among healthcare executives attending Congress focused on ensuring patient safety, data privacy, and reducing biases in AI applications.
Mega-Mergers and Leadership Challenges
There was a lot of talk at Congress about the ongoing debate over continuing merger activity to form mega-monster national not-for-profit systems. A central talking point was the rumor about a significant Atrium acquisition. While these systems continue to grow, we remain skeptical about their long-term viability.
The Value of ACHE
Every year, we are reminded why attending ACHE is invaluable for healthcare professionals. It’s a smart investment that pays off in countless connections, insights, and updates on the latest industry shifts. If healthcare is your business, attending should be a priority. One thing that is always surprising is noticing which executives are notably absent, especially those in transition.
Final Thoughts
In healthcare leadership, staying informed and connected is essential. ACHE Congress remains an invaluable forum for exploring the healthcare’s industry’s challenges and opportunities. As we navigate changes in healthcare policy and explore new provider models, it’s clear that leadership perspectives will continue to evolve. Until next year, let’s keep the conversations going and stay proactive in shaping the future of healthcare. We look forward to working with our clients to bring them healthcare leaders with the vision and creativity that will help them achieve their missions that are so vital to the wellbeing of the communities they serve.
