Healthcare Needs Business Literacy

The complexities of 21st century healthcare are causing hospital and health plan CEOs to take a fresh look at the concept of business literacy. No longer is it adequate for merely the C-suite to understand the nuances of the industry or the organization’s business goals. More and more there is the realization that such awareness must cascade throughout the entire organization if the enterprise is to succeed.

Business literacy is not a new concept within most high-performing companies. Classically defined as “the knowledge and understanding of the financial, accounting, marketing and operational functions of an organization,” CEOs across many business sectors are taking this concept to heart. 

Smart organizations are today going one step further by marrying this imperative with “business acumen” – equipping employees at all levels with the tools and confidence they need to make good judgements that are likely to lead to good outcomes. Such an approach is particularly relevant in healthcare, as all of the energy surrounding enhancing the patient experience and moving toward more patient-centered care is dependent upon knowledgeable and engaged employees.  

Making all of this work in healthcare is no easy task. Language barriers, disparities in education levels, amount of prior training, and simply a desire to “engage” vary greatly from employee to employee, especially within organizations whose workforce may number in the thousands. Still there are things healthcare organizations can do to tilt the needle in the right direction as it applies to business literacy. Here are three:

• Start with New Hire Orientation. This is a perfect time to teach new employees about the healthcare industry – from its nomenclature to its regulations. New employees should leave their orientation with a firm understanding of the language they will be hearing from co-workers, physicians, vendors and others. Spend time to educate new employees about the company’s business so they understand how it operates as a financial enterprise and the meaning of key metrics. Why is ICD-10 important? What is HEDIS, and why do Stars matter? Who are your stakeholders? What are your products? Who are your customers? What marketplace dynamics may lead to or impinge your success? 

• Reinforce with Ongoing Training. Make sure that ongoing training doesn’t focus solely on technical skills, but also includes business knowledge and social-skill development. That means sharing not just the “what” but the “why” as decisions are made and changes occur. Knowledge is the best way to reduce ignorance and misunderstanding. It is every employee’s job to make the business succeed; but without the right knowledge base, employees aren’t going to know what questions to ask, what marketplace or regulatory changes have meaning, and how they can best contribute.

• Plan for the Future. The sound stewardship and ongoing sustainability of healthcare organizations is dependent upon strong business literacy skills. One way to help assure a bright future is to reward those who demonstrate such attributes. Consider effectiveness in business literacy in the selection of future leaders, and begin grooming them for ongoing success. Start a mentoring or “shadow” program. Appoint them to committees. Provide ongoing educational opportunities on or off campus. Give these employees exposure at healthcare conferences or trade shows. And whenever possible promote from within.

Business literacy is an important asset to any successful enterprise. This is particularly true in healthcare whose jargon, history, and constantly moving parts make it challenging even for the well-informed. To have simply a cursory understanding is no longer enough. Healthcare executives have known this for years, which is why and how they have risen to become leaders. It is now time to share the knowledge wealth.

Tom Peterson is president and chief executive officer of Clear Vision Information Systems in Agoura.