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The Bad News: Only 30 Percent of Health Care Execs say they're ready for change

As reported in nearly every publication covering the health care industry, according to a recent McKinsey survey of 367 health care executives, only 30 percent say their companies are ready for the anticipated changes in health care from health care reform legislation and changing economic conditions. The survey queried payer, provider, and pharmaceutical company executives on their opinions about the ability of their organizations to respond to change, the steps they've taken recently in response to the economic downturn, and their plans for coping with change and fostering innovation within their organzations to adapt to anticipated health care reform.

The majority surveyed (76%) anticipate that health care reform will have a significant long term impact on the industry. More than half (54%) think the current economic crisis will have a similar effect.

The upshot of the survey is that organizations that view themselves as prepared for change have systems and processes in place that help them plan for change and focus on innovation. They also receive encouragement and support from the organization's leaders to drive innovation in a wider range of areas, including product design, customer service, IT, and medical management practices.

The Good News: Companies that invest in and plan for change prosper coming out of a recession

In another recent article, Darrell Rigby, CEO of a prominent business consulting firm that specializes in positioning companies for success following an economic downturn, explains that recessions offer singular opportunities to gain market share. The article explains that a growing body of research shows that organizations that invest in and focus on innovation and offer new products and services coming out of a recession regularly surpass the performance of organizations that focus on reducing expenses and battoning down the hatches to ride out a recession.

Citing examples like the performance of Apple's iPod, which was released in the middle of the last recession in 2001, and companies like EMC, now a leading data-storage firm that took almost 80 percent of market share away from giant IBM, Rigby points out that making "bold moves in bad times" can really pay off big.

To find out how you can make a bold move in running your healthcare practice, contact David Gaston,

PBN Business Development, 800.288.4901,

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