A review of the panel discussion from the June 13th Columbus, Ohio Networking Event.
Panelists: Cathy Denning (Vizient), Sharyl Gardner (Midmark), Sean McNally (Cardinal Health), Randy Oostra (ProMedica).
Q: What do M&A’s create for members/customers?
A: (Shawn McNally): Cardinal Health is a great example of a company whose growth is deeply dependent on M&A’s. Due to the constant evolution, such companies have the ability from a resource standpoint to offer cost solutions and innovative solutions through the utilization of new technology and processes.
M&A’s create opportunities by growing the mindset of embracing change; create value for both customers and employees and offer opportunities for leadership development.
Q: How would you determine the state of the healthcare industry?
A: (Randy Oostra): “Healthcare today is a hot mess!”
Over the last 20 years, the healthcare industry has been in a constant state of change in efforts to improve the model and cost trajectory. Despite its vision, ACA was not able to accomplish that speeding up consolidations in every sector of healthcare.
Medicare & Medicaid expenses have reached up to 20% of GDP in the last few years, compared to 5% of GDP 50 years ago. Increasing healthcare costs are the number one cause of debt among citizens filing bankruptcy.
The rise of consumerism, most prominent in Millennials and their increasing buying behaviors is another powerful disruptor, causing the evolution of virtual and telemedicine.
Q: What internal education and leadership programs do each of your organizations offer its employees?
A: Sean McNally (Cardinal): Cardinal has designated a Talent Development Team. In the past, the company had sought talent primarily from technical universities. Recently, the executive leadership has stressed the importance of opening the doors to students and graduates of Liberal Arts universities as well. Cardinal works extensively with OSU and Vanderbilt University.
The company encourages employees to be heavily involved in various projects within the company, as well as the community.
Another initiative process that Cardinal has implemented is mandatory job rotations to promote cross-training and talent development.
A: Sharyl Gardner (Midmark): Midmark has introduced multiple cross-functional teams to collaborate internally and externally. The company has also launched individual development plans for employees to nurture and develop their personal and professional talents.
A: Cathy Denning (Vizient): Vizient has implemented a Succession Plan” for C-Level leaders whose goal is to create a path for passing knowledge, planning and training the future successors as baby boomers exit the workforce.
A: Randy Oostra (ProMedica): Individual Career Planning has been implemented by ProMedica to increase education among certain groups and prepare the next generation of leaders (“40 under 40” – 40 employees under 40 years of age; “The 9-box” grid is utilized for examining talent within the organization and making talent decisions).
Personal Learnings & Takeaways:
“Change is the only constant in life” – Heraclitus
In the highly dynamic healthcare industry marked by the era of consolidation across every sector, Heraclitus’ quote cannot be truer as companies are scrambling to stay relevant by constantly reinventing culture and processes every day.
During the panel discussion at the PWH Columbus Networking Event “Leading through a Consolidating Industry,” the message that echoed loud and clear was: Invest in your people. From stakeholders, such as customers to suppliers and partners, to employees and the communities we represent the mission to achieve success lies in investing in people and spreading knowledge. In order to thrive, organizations need to concentrate on delivering value to each of these groups while improving outcomes.
Prosperous companies understand that the customer comes first because of the solutions our communities, industry partners and employees offer, while cohesively carrying out their corporate vision. Leaders understand that change starts from within the organization by the individuals who relentlessly ensure that the transition or challenge the company faces will have a successful outcome. Leading through change means creating a customer-centric culture and expanding creative and innovative thoughts and processes. Discovering and developing talent through internal education, leadership and career-planning programs is crucial to the vitality and sustainability of our industry.
By Valeriya Stoyanova, Supplier Relations, Administrative Assistant, Concordance Healthcare Solutions