Healthcare in 2025

Healthcare in 2025

“Making Predictions is Really Tough, Especially About the Future”

By Kurt Mosley, Associations Practice Leader, HealthSearch Partners

The quote in the headline, originally attributed to theoretical physicist Neils Bohr and to New York Yankees legend Yogi Berra, sums up how uncertain and complicated predicting what’s ahead in 2025 for healthcare and executive search will be. Just think about what happened in 2024. Who would have predicted the twists and turns that occurred during the past year?

For the first time in several years, healthcare reform was not a central issue in the Presidential Election. Heading into the 2025 legislative sessions, it is important to note that both political parties have learned that proposing major healthcare changes can alienate voters.

With this caveat, here’s what we see in our crystal ball for healthcare and executive search in 2025.

Demand

In 2023, the latest year for which numbers are available, CEO turnover increased 42% compared to 2022. Industry analysts don’t see much of a change in this trend in 2025. Conventional wisdom sees long-term tenured leaders being offered buyouts. Newly hired CEOs will face a rapidly evolving healthcare landscape. This shift highlights the growing demand for innovative and adaptable leaders who can navigate the complexities of healthcare management and reform. CEOs, CNOs, CFOs, VPs of Supply Chain, will all be in high demand.

“Over the last few years, and post pandemic, we have seen hospitals and health systems wanting ‘fresh eyes’ on the issues facing their organizations,” said Ivan Bartolome, President and CEO of HealthSearch Partners. “As costs have gone up, labor supply has shrunk or is flat, and reimbursement has been challenged, it has become harder to produce the margins needed for capital reimbursement. Fresh eyes can help navigate the changing healthcare industry.”

Health Equity: Poverty and Healthcare

Hospital leaders must tackle the persistent cycle of poverty and poor health in the communities they serve in the new year. According to the Kaiser Family Foundation, in the United States a mere 5% of the patient population accounts for 50% of healthcare spending. This disproportionate allocation underscores major challenges such as the chronic disease epidemic, food deserts, and inadequate access to healthcare services.

Innovations in healthcare technology will play a pivotal role in bridging these gaps, particularly in underserved areas. Addressing these issues necessitates a multifaceted strategy aimed at enhancing health equity and alleviating the financial burden on the healthcare system. By focusing on preventive care, expanding access to healthy food, and leveraging telemedicine and mobile health solutions, healthcare leaders can work toward a more equitable and sustainable system.

Retention and Turnover

As previously stated, the double-digit increase in executive turnover is unlikely to diminish in 2025. Healthcare leaders must understand the direct and indirect costs associated with this trend, including recruitment, training, lost productivity, and a set-back to improving employee engagement. These factors significantly impact hospital operations, patient care, and staff morale. Additionally, frequent leadership changes can undermine a hospital’s reputation and stability, posing long-term challenges for organizational cohesion and community trust.

An expanded approach to onboarding has been gaining momentum as a strategic business initiative that personalizes and strengthens the initial employee experience. HealthSearch Partners has initiated a new blog series featuring insights from accomplished hospital and health system CEOs on their first 90 days of employment, including their actions that established trust and fostered initial relationships. Read our latest blog post in this series –Scrubbing In: Standing Shoulder-to-Shoulder With The Surgery Team

“The first 90 days is the foundation for a new leader’s success. A well-thought-out, intentional plan is crucial—doing things the same way won’t cut it in today’s dynamic healthcare landscape. Be bold, take decisive actions, and make an impact from day one,” said Neill Marshall, Chairman of HealthSearch Partners.

Health Care Overhaul

The recent tragic news of the killing of United Healthcare CEO Brian Thompson has underscored the widespread, deeply felt frustration with the American healthcare system. In a recent New York Times op-ed, current United Healthcare Group CEO Andrew Witty remarked, “No one would design a system like the one we have, and no one did. It’s a patchwork built over decades.” This sentiment highlights the deeply-rooted issues within the system.

Healthcare leaders must acknowledge the current system is fundamentally flawed. They need to seek insights and guidance from inside and outside the healthcare sector, ensuring a comprehensive approach to reform. This mindset is crucial when recruiting new leadership to drive meaningful change.

Given these challenges, healthcare executives must stay informed and agile, ready to navigate changing regulations, technological advancements, and evolving patient needs. While the future of healthcare in 2025 may be unpredictable, strategic foresight and preparedness will be vital for successful recruitment and retention.

Kurt Mosley

Kurt Mosley is Associations Practice Leader for HealthSearch Partners, a national healthcare executive search firm based in Dallas, TX.

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