Healthcare CEOs confident in the future
Growth is expected but innovation is largely left to take care of itself
The healthcare industry may be going through a period of uncertainty and tremendous transformation, but some CEOs of healthcare companies are expressing confidence in the future.
Twenty-eight percent of healthcare executives are “significantly more confident” than they were a year ago about growth in the healthcare industry and 41 percent are “somewhat more confident,” according to professional services company KPMG.
A CEO survey from KPMG took the temperature of 400 executives across a number of industries in the U.S. Sixty-one of those surveyed executives are from the healthcare industry. They represent a range of fields, from biotech to health systems, and run companies with more than $500 million in revenue.
Among the survey’s results are these revelations:
- 85 percent of the surveyed healthcare executives expect to expand hiring in the next three years. A majority of those executives indicated that hiring growth in the next three years will increase between 6 percent and 10 percent.
- 34 percent of CEOs said they are considering spending more time with government officials and regulators.
- Thirty-three percent said their organization has no formal, company-wide process for innovation nor has any plans on developing such a process. 20 percent said their company has a process and has begun implementation and 11 percent said their process is fully developed and under way.
- Most innovation is driven by an executive team or from the bottom up rather than by the CEOs. Improving existing products or services and improving year-over-year growth and profitability are the two largest drivers of innovation.
- CEOs said the top barriers to innovation are rapidly changing customer dynamics, budget constraints and a lack of a formal innovation process or plan.
