By Bruce Johnson

Today’s hospital CEO is faced with some of the most acute challenges to the health of provider organizations than at any time in the history of modern health care. Based on my conversations with many of these leaders, and according to research done by the American College of Healthcare Executives, an international healthcare organization representing more than 40,000 such executives, their number one concern is financial challenges followed by health care reform implementation and new government mandates for patient safety and quality.

Not surprising given those challenges, the tenure of most hospital CEOs is less than three and a half years. The skills needed to successfully lead today’s provider organization extend beyond financial acumen, health care expertise and management competency. The nuanced nature of health care requires the diplomacy of a head of state with the strategic ability to manage one of the most complex systems in business today.

In light of this health care reality, and as a fellow CEO, the following skills are those that I am finding to be the most important in helping my organization succeed today.

1. Learn your organizational levers
The hospital environment is made up of numerous business processes. Each process is an opportunity to impact one, if not all, of the three critical concerns of CEOs. CEOs need the skill of learning which business processes are also the key business levers impacting financial health, reform implementation and quality patient care. The supply chain provides a wealth of such information. Knowing where the supply chain impacts all three and utilizing the data available can reveal these levers — levers that connect supply chain to revenue and to patient safety.

2. Data-driven decision making is critical
Instinct, experience, intuition are all valuable, but nothing trumps solid data that informs decision making, regardless of whether it’s operational or clinical. Value and the financial incentives in health care are a function of quality, efficiency, safety and cost and each of these are backed by a series of data sets to inform decision making. With the changing demands from reform implementation, it’s not as easy as it sounds. For instance, identifying ways to leverage data from the hospital’s EMR investment as well as capturing data within operating rooms,can be critical path to decision making.

3. Communicate to inform and elevate
With health care reform has come reduced reimbursements as well as a host of other additions and subtractions from the way care is managed at most hospitals. Significant change usually means organizational strain. The uncertainty inherent in the current health care environment affords leaders an opportunity to both inform and elevate those who are critical to the success of the organizational mission. It’s going to take the entire organization pulling in the same direction to navigate the changes facing health care.

The ability to communicate across the organization is one of those skill sets that can be taken for granted. It’s critical that everyone understands where your organization is going and how important it is to solve for that important cost quality equation. That communication can foster strong relationships among functional areas, e.g., finance and operations, and organizations across the continuum of care.

4. Empower your team
Closely tied to communication is the ability to empower your team. This is actually one of the top two areas that health care board directors identify as key to executive success. There is increased attention on the ability of CEOs to mentor and develop internal talent. The other is sharing leadership and delegation skills. You simply can’t make it all happen by force of will or personality. Provide the leadership for good decision making and empower those throughout your organization to exponentially move toward the actions and outcomes needed for success.

5. Never underestimate the power of culture
There is ample evidence that there is a link between culture and business results. The challenge is that it takes leadership. Great cultures are adaptable to changing circumstances whether it’s reform or acquisitions. This isn’t human resources job; it’s a CEO’s skillful ability to involve the entire organization in a focused direction. As Peter Drucker so wisely stated, “Culture eats strategy for breakfast.”

In this environment of change CEOs have an opportunity to lead not only their own organizations but the industry as well. These five skills can be a strategic asset to CEOs and other senior executives as they navigate today’s 21st century hospital.

About the author: Bruce Johnson is CEO and president of GHX the world’s largest electronic trading exchange for healthcare, which brings together provider, manufacturer, distributor and group purchasing organizations in a collaborative and connected community designed to improve efficiencies, visibility and accuracy in the healthcare supply chain. Johnson earned a bachelor’s degree in Electrical Engineering from the University of Nebraska at Lincoln and his master’s in Business Administration from the Kellogg School of Management at Northwestern University