Healthcare executives' worries about talent retention, recession beginning to ease

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In assessing the biggest risks to their business, most healthcare executives say that the risk landscape is starting to ease, with recessionary fears not as prevalent as they once were and the overall picture improving for talent acquisition and retention – although cyberattacks and uneven economic growth remain top concerns.

The findings, from PwC's latest Pulse Survey, suggest that many executives are rethinking their traditional workforce and business models by investing in technology and innovation, with some even kick-starting their own schools for clinical staff training and development.

The business environment for healthcare is beginning to stabilize, PwC said, after years of complex challenges, including the COVID-19 pandemic, supply chain disruptions, a shift to hybrid work, rising interest rates and increased economic uncertainty. Now, though, recessionary fears are easing, consumer spending has held up and confidence is rising – meaning executives can capitalize on economic expansion when it starts to ratchet up again.

WHAT'S THE IMPACT

Based on the responses to PwC's survey, it appears recessionary concerns are starting to let up; just 17% of business executives strongly agree that there will be a recession in the next six months, a drop from 35% in October 2022.

The risk landscape seems to be easing on several other fronts, as well. After wading through the Great Resignation and ensuing talent shortage, only 26% of executives now say finding and keeping talent is a serious risk. Executives also say the U.S. regulatory environment and climate change present less risk to their business now than they did this time last year.

Many risks remain, however. Cyberattacks present the biggest current potential risk, with 74% of executives saying this is either a moderate or serious risk. In addition, while the odds of a recession may be lower, economic growth is still likely to be uneven at best. Nearly three-quarters (72%) point to an uncertain macroeconomic environment as a moderate or serious risk. A related risk is margin pressure – 68% see it as a moderate or serious risk.

Executives are far more likely to invest in future growth rather than hunker down. More than a quarter (27%) want to embed new technologies into their business model, and 24% are focused on new revenue streams, more than any other strategic priority.

Technology implementation remains a key challenge to transforming companies. They're willing to make the upfront investment, but they struggle to capture value from new tech once it's in place. The vast majority (88%) say achieving measurable value from new technology is a challenge, followed by updating their operating model to support their new vision (85%), covering the cost of new technology (85%) and training the workforce (84%) on new tech.

Meanwhile, half of executives cite climate change as a risk to their business. Only 19% see it as a serious threat, down from 23% in 2022. Companies are more likely to comply with sustainability reporting disclosures and Securities and Exchange Commission requirements, but only 23% are planning for climate-related disruptions.

THE LARGER TREND

PwC recommended focusing on cybersecurity and privacy at the front end of companies' transformations – especially those that use digital technology to improve the customer experience or streamline workflows. All too often, companies think of cybersecurity and risk after the fact, when changes can be harder to implement, the report found.

It also recommended creating the right data governance model.

"Data is the principal asset at many organizations, and it needs to be treated as such – particularly given rising concerns about data privacy in some markets," the report's authors wrote. "Project teams need access to customer data to develop new products and services, but safeguards need to be in place to prevent incidental disclosures or new vulnerabilities."
 

Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com