The Clinical Enterprise is the Beating Heart of Health Systems
As health systems navigate the post-COVID financial landscape, the role of the clinical enterprise within these systems has never been more critical. Organizations are growing in size, absorbing failing enterprises, but clinicians, especially physicians, feel increasingly disconnected. In many cases, the clinical enterprise is merely a conglomeration of practices tied together by compensation plans and a shared identity.
However, a true clinical enterprise is not just a patchwork solution; it is the foundation of a robust system. Without engaged clinicians, a healthcare organization lacks a core identity. The success of leading healthcare institutions, like Mayo Clinic and Johns Hopkins Medicine, lies in their clinician-led approach to fostering innovation and maintaining high standards of care.
This level of commitment directly impacts a health system’s financial health, especially with the shift towards risk-based revenues. Clinical collaboration and control over care costs are essential for sustainable growth. The key lies in clinicians working together effectively, regardless of whether they are salaried employees or independent practitioners.
A successful clinical enterprise is defined by shared values, rigorous quality standards, collegiality, effortless communication, and inspirational leadership. The ability of clinicians to work together and feel ownership in the enterprise is a crucial indicator of its success. Lack of empowerment can lead to movements like clinician unionization, highlighting the importance of connecting with the workforce to ensure long-term viability.
In a rapidly evolving healthcare landscape, the health and vitality of the clinical enterprise will determine the success of healthcare organizations. Clinicians must collaborate and communicate effectively to meet the ever-changing needs of patients and colleagues. The Clinical Enterprise is indeed the cornerstone of healthcare success in the future.
Jeff Goldsmith is a seasoned health care futurist, President of Health Futures Inc, and a regular THCB Contributor. This article is adapted from his personal substack.
