Governing Health

The social and economic phenomenon known as “the Great Resignation” is now impacting hospital and healthcare CEOs. This, according to important new analysis from the well-known outplacement and search firm Challenger Gray & Christmas. To provide boards with a perspective on rising incidents of CEO resignation and their impact on healthcare organizations, we turn to our quarterly conversation with John Challenger and his latest survey findings on the CEO employment status.

In this episode, host Michael Peregrine and John Challenger offer members of the board executive search, finance and HR committees an important update regarding CEO resignation trends, as well as an interpretation of economic data as it may impact health systems. Insights include:

- Findings from the Challenger, Gray & Christmas report and their implications for the board’s search and succession process.

- Recommendations to boards regarding CEO monitoring and succession planning.

- How cultural changes and concerns are prompting the increase of CEO resignation.

- Key warning signs of CEO fatigue.

- Observations regarding leading economic indicators in the second quarter; e.g. inflation, unemployment rate and job participation statistics.

- Final words of caution for board consideration.

Part two of this series addresses key issues facing the board’s compensation committee when evaluating executive compensation, data analysis, recruitment and retention, and executive search matters.

This episode features industry leaders, Tim Cotter and Ralph DeJong, as they offer extraordinary insight on emerging priorities and trends impacting the compensation committees, including:

- The evolution of annual and long-term incentive plans.

- The retention effect of executive pay and benefit programs.

- The continued relevance of for-profit compatibility data.

- Handling executive and director co-investment arrangements.

- Approaching CEO compensation earned from outside board service.

The board’s executive compensation committee has traditionally been one of the most prominent of all board functions, with its focus on such interconnected responsibilities as oversight of the executive compensation process, compensation data analysis, talent recruitment and executive search.

This episode is the first in a two-part discussion filled with valuable insight and the latest developments affecting compensation committees from two recognized health industry compensation and benefits experts, Tim Cotter and Ralph DeJong. Tim and Ralph will discuss such important topics as:

- The current state of salary, increase budgets, incentive award levels and emerging compensation practices.

- Developing retention and predictable transition strategies.

- Insights into application and interpretation of the IRS “rebuttable presumption” standards.

- Needed changes to highly prescriptive compensation philosophies.

- Tactics for encouraging executive retention beyond traditional cash incentives.

COVID-19 concerns continue to dominate the boardroom agenda, from patient safety and access to care to understaffing and the concerns surrounding healthcare workers and management fatigue.

Michael Peregrine welcomes back Jamie Orlikoff, president of Orlikoff & Associates, Inc., for an update on where we stand two years into the COVID-19 pandemic, including:

- Lessons that boards need to have learned two years into the pandemic.

- A realistic perspective on the transition from pandemic to endemic.

-The implications of operating a hospital or healthcare system at the forefront of COVID-19.

- Risks associated with government intervention in the healthcare standard of care crisis.

- Key issues facing board leadership at the beginning of 2022.

As the most recent economic news indicates a slowdown in hiring coupled with a continuing decline in the unemployment rate and an increasingly tight job market, there seems to be a lot of confusion to clear up. Mix this all with a 7% unemployment rate and The Great Resignation, and we could all benefit from a little guidance. This week, Michael Peregrine welcomes back John Challenger for his perspective on economic trends and the messages he derives from them, what it means for board oversight and what he really thinks about The Great Resignation. John and Michael also discuss:

- Who are the people leaving their jobs in The Great Resignation and why are they leaving?

- How can recruiters target each group leaving during The Great Resignation?

- What is the ripple effect of offering promotions as an attraction for retention?

- What extent does the normalization of the pandemic affect the issues of retention and a tight labor market?

As the US comes out of the dreaded fourth wave of the COVID-19 pandemic, the healthcare industry is facing one of the biggest unintended consequences of the pandemic — “tired of being your hero” syndrome. With healthcare professionals leaving the industry in the name of burnout, stress, safety, moral harm, and even personal freedom, a passive governance approach to caring for the caregivers simply won’t work anymore.

To review what board members need to do to be engaged in the face of these issues, as well as their governance implications, Michael Peregrine is joined by David Jarrard, President and CEO of leading healthcare strategic communications firm, Jarrard Phillips Cate & Hancock, and Audrey Murphy, Vice President and Co-Chief Legal Officer and Chief Officer team member for Health and Safety at Hackensack Meridian Health, one of the largest not-for-profit hospital systems in New Jersey. Together, they discuss how board leaders can address the growing crisis in the healthcare provider community.

As corporate directorship increases in complexity, the ability of directors to fully engage with the board agenda and to be an effective partner to management are two of the most critical corporate governance issues. In this environment, the ability of directors to be “certified” as to their competency to serve is attracting greater interest.

To review what board members need to know about director certification and how the National Association of Corporate Directors (NACD) works to support the profession of directorship, Michael Peregrine is joined by Kimberly Simpson, COO, General Counsel, and Corporate Secretary for the NACD. She also leads NACD’s Director Certification Program and joins us to discuss the process and importance of engagement certification.

In this unusual post-pandemic recovery period, the economic signals on which business leaders and policymakers rely to inform their decisions are going haywire. To help answer the difficult economic questions facing healthcare officers, executives and advisors, Michael Peregrine is joined by John Challenger, CEO of Challenger, Gray & Christmas, a global outplacement firm, to discuss the board’s top post-pandemic economic challenges, including:

> 4 challenging economic factors impacting healthcare board members and trustees

> Insights into job participation rate and unemployment rates

> The current inflationary trend and its impact on healthcare organizations

> Focused work of key committees including finance, human capital, and strategic planning

> Trends in CEO turnover that search and succession committees need to watch

On this episode - the third in our new Governing Health special edition series - Ken Kaufman, Co-Founder and Managing Director of Kaufman Hall and Michael Peregrine discuss the board’s top post-pandemic governance challenges, including:

> The concept of “languishing” within companies in the wake of COVID-19

> Strategic planning tactics to resume normal organization activity

> The critical need to maintain a competitive advantage post COVID-19

> Maintaining growth through M&A activity given increased antitrust enforcement

> Board/executive partnering to address nonprofit healthcare’s role in the ESG movement

> Confronting the dramatically expanded post-pandemic board agenda

Board responsibilities for COVD-19 related concerns aren’t over yet—not by a longshot.

On this episode of the Governing Health podcast, Michael Peregrine and special guest Jamie Orlikoff, President of Orlikoff & Associates, Inc. and a national advisor on governance and leadership to the American Hospital Association, discuss:

Insights into the board’s role in preparing for potential new disease profiles

Governance implications of mask-wearing and vaccination implementation

Bracing for potential post-COVID-19 hospital readmissions

The board’s public profile on public health matters

Insights into the composition of the post-pandemic health system and hospital boards

The most persistent long-term and acute implications of COVID-19 on society and healthcare systems

Proactive steps that boards need to take when preparing for potential future surges and booster vaccination

The role of the board in assuring that lessons from the pandemic are integrated into organizational memory