Many Healthcare Organizations And Executives May Not Be Prepared For Change, Says SIH Founder, William McFaul

In order for providers to survive an uncertain future, their organizations will need the ability to quickly and collectively adapt to change. Those that do not create the necessary environment and have the essential processes for change management and the execution of strategies in place are doomed to fail.

Healthcare provider organizations (HPO's) must act swiftly to adapt to intensifying cost and quality pressures or their fiscal viability will be threatened, according to William McFaul, founder of Strategic Initiatives In Healthcare, LLC, a Jackson, N.J.- based healthcare services firm.

On June 8, McFaul spoke at the Healthcare Materials Management Society of New Jersey in a session entitled, "What Materials Management and Supply Chain Executives Must Do, or the Profession Will Die." McFaul, a 35-plus year veteran in healthcare, is widely recognized as an expert and pioneer of many innovative concepts which impacted change management practices throughout the industry.

He stated, "The footprint of healthcare has changed dramatically over the past 10-15 years. Technological changes such as arthroscopic surgery, stents, and a host of non-invasive or minimally invasive procedures have had a substantial impact on provider top and bottom lines. The shift to outpatient care and competition from ambulatory care centers has also had a devastating effect on hospital revenues. The list of past, current and near-term disruptions like these continues to grow and will challenge the ability of the industry to remain fiscally viable. As these disruptions continue, so will the need for HPO's to adapt by implementing change."

McFaul explained that he and his firm have devoted in excess of 15,000 hours of research and development to identify organizational and operational deficiencies within healthcare organizations. He stated, "One glaring finding of our research indicates that many provider administrations have failed to implement processes or make the necessary commitment to train their middle managers to develop the skills necessary to build organization-wide cohesion and collaboration. In order for providers to survive an uncertain future, their organizations will need the ability to quickly and collectively adapt to change. Those that do not create the necessary environment and have the essential processes for change management and the execution of strategies in place are doomed to fail."

He urged the attendees to expand their focus from merely managing things such as inventory and distribution processes to include honing their skills to assume a leadership role within the ranks of the middle managers. McFaul clarified his definition of leadership when he added, "I am not talking about leadership in the sense of being a general. Healthcare organizations already have the generals. They need recruiters - people who will enlist the other middle managers to unify their efforts to execute the strategies identified by the executives expeditiously and with optimal efficacy."

His presentation also included remarks concerning the continuing tendency of healthcare providers to focus on single concepts such as Six Sigma-type programs or value analysis initiatives as if they were solutions to the cost and quality problems they face. McFaul stated, "Many of the initiatives adopted by providers are merely tools that can contribute to the long term needs of the organization. Unfortunately, most of these tools are quantitative concepts, which fall far short of meeting the needs of addressing the subjective issues that are so prevalent in healthcare. As a result, providers are grossly deficient when it comes to organization-wide collaboration and cohesion."

The Healthcare Materials Management Society of New Jersey is an affiliate of the Association for Healthcare Resource and Materials Management and the American Hospital Association. The Society meets routinely to conduct educational programs designed to enhance the skills and abilities of the profession. For more information on The Healthcare Materials Management Society of New Jersey, contact President John Brede at jbrede@somerset-healthcare.com.

More information on Strategic Initiatives In Healthcare can be found at www.SIHealthcare.com.

     
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