FTI Consulting Survey Identifies Top Operational Challenges and Opportunities for Hospital Leaders

Rhea-AI Summary

FTI Consulting’s inaugural Hospital Operations Outlook Survey reveals the top operational challenges for hospital leaders, highlighting workforce shortages, cybersecurity threats, and financial performance concerns. Nearly all hospital executives (99%-100%) are worried about clinical, financial, and digital technology issues, amid post-pandemic recovery, increased patient demand, and regulatory scrutiny.

Key findings include: 55% of respondents feel unprepared for cyber attacks; 99% have adopted value-based care models, driven by patient-centered care (44%) and quality improvement (40%); and 49% believe their hospitals are not prepared for current patient volumes. The report stresses the need for targeted, customized approaches to these challenges, emphasizing the importance of effective communication and strategic guidance to navigate these complexities.

Positive

• 99% of hospital executives have adopted value-based care models, driven by patient-centered care (44%) and quality initiatives (40%).
• FTI Consulting offers strategic guidance in financial, corporate, public policy, and brand communications to enhance hospital reputations and future success.
• The survey provides hospital leaders with targeted insights to influence effective change, particularly in workforce recruitment and retention.

Negative

• 55% of hospital executives feel unprepared for cybersecurity threats, highlighting significant risks to data security.
• 49% of hospital leaders believe their hospitals are not fully prepared to handle current patient volumes, indicating potential operational strain.
• The healthcare sector faces increased scrutiny from regulators, which could add pressure to hospital operations and financial performance.

Workforce Shortages, Cybersecurity Threats Top List of Concerns for Nearly All Respondents

WASHINGTON, June 12, 2024 (GLOBE NEWSWIRE) -- FTI Consulting, Inc. (NYSE: FCN) today announced the results of its inaugural FTI Consulting Hospital Operations Outlook Survey, which found that workforce shortages, financial performance and risks related to new technologies are top of mind for hospital leaders.

All, or nearly all hospital executives surveyed have clinical (99%), financial (99%) and digital and technology concerns (100%), as the industry continues to experience post-pandemic transformation, increasing demand from patients and communities, and heightened scrutiny from regulators.

“As the healthcare system recovers from the shock of the pandemic, healthcare executives need to prepare to face future challenges head-on,” said Lauren Crawford Shaver, a Senior Managing Director and Head of Healthcare & Life Sciences for the Americas within the firm’s Strategic Communications segment. “With a potential administration change and subsequent regulatory reforms, the inevitable use of AI in healthcare, and hospital finances under a microscope, hospital leaders need to think creatively to build strong systems that can withstand new pressures.”

Key findings from the survey:

• While hospital executives acknowledge cybersecurity risks and their potential consequences, more than half of respondents (55%) admit they are not very prepared for a cyber attack.
• Nearly all hospitals involved in the survey (99%) have adopted a value-based care model, driven by the shift to patient-centered care (44%) and quality improvement initiatives (40%).
• With industry workforce shortages in the spotlight, nearly half (49%) of executives believe their hospitals are not fully prepared to deal with current patient volumes.
  

“A multitude of factors are impacting hospitals’ ability to recruit and retain talent, but the good news is, hospital leaders can influence effective change if they have targeted insights from their people,” said Alexandra Priola, a Managing Director in the People and Transformation offering within the Strategic Communications segment at FTI Consulting. “Long gone are the days of taking broad approaches to nuanced challenges. The winners will be the ones that prioritize customization — in messaging, programming and experiences — that speaks to the specific needs of their audiences, and in the process, channels resources into areas that enable engagement, growth and commitment.”

Another top-of-mind issue is the risk of cybersecurity threats. Hospital leaders recognize the significant potential costs of a cybersecurity incident to their organization, with half of respondents (50%) pointing to data loss or compromise as their biggest concern.

“Hospital leaders can no longer ignore the inevitable cybersecurity risks plaguing the industry. Adopting a holistic preparedness mindset, incorporating both technical and communications aspects of cybersecurity preparedness, is critical to mitigating risk. Having the right partners at the ready to augment your response in the event of a cybersecurity crisis can enable organizations to move quickly and in confidence,” said Jamie Singer, a Senior Managing Director and and Co-Leader of the Cybersecurity & Data Privacy Communications practice at FTI Consulting.

The FTI Consulting Hospital Operations Outlook survey highlights the growing complexity and scrutiny hospitals face, where reputations can shift swiftly and crises escalate rapidly. Hospitals must effectively communicate with regulators, elected officials, communities and patients, to safeguard and enhance their reputations. FTI Consulting's Healthcare & Life Sciences communications team offers expertise in addressing economic, legal and regulatory challenges, providing strategic guidance in financial, corporate, public policy and brand communications to ensure organizations are well-positioned for future success.

The full survey report is available here.

About the Survey
This research was conducted online by FTI Consulting’s Strategic Communications segment between March 27, 2024 and April 4, 2024, with 186 senior executives across all types of hospitals and 14 mid-level leaders of academic hospitals. Overall, 62 respondents represent academic hospitals, 102 are part of a health system and 36 are standalone facilities.

About FTI Consulting
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 8,000 employees located in 33 countries and territories, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $3.49 billion in revenues during fiscal year 2023. In certain jurisdictions, FTI Consulting’s services are provided through distinct legal entities that are separately capitalized and independently managed. More information can be found at www.fticonsulting.com.

FTI Consulting, Inc.
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Washington, DC 20004
+1.202.312.9100 

Investor Contact:
Mollie Hawkes 
+1.617.747.1791 
mollie.hawkes@fticonsulting.com 

Media Contact:
Matthew Bashalany 
+1.617.897.1545 
matthew.bashalany@fticonsulting.com

FAQ

What are the primary concerns of hospital leaders according to the FTI Consulting survey?

The primary concerns are workforce shortages, cybersecurity threats, and financial performance.

How many hospital executives feel unprepared for a cyber attack according to the FTI Consulting survey?

55% of hospital executives feel unprepared for a cyber attack.

What care model have nearly all hospitals adopted as per the FTI Consulting survey?

Nearly all hospitals have adopted a value-based care model.

What percentage of hospital leaders believe their hospitals are not fully prepared for current patient volumes?

49% of hospital leaders believe their hospitals are not fully prepared for current patient volumes.

What drives the adoption of value-based care models according to the survey?

The adoption is driven by patient-centered care (44%) and quality improvement initiatives (40%).