What Do Construction and Healthcare Have in Common?

Several years ago, an executive from a large construction company, Jack, and I co-presented a program about leadership and business development. My colleague introduced the idea that in the future growth of the construction company will depend on market leaders finding money so their clients can afford to pursue building projects. Jack and his team had enjoyed tremendous success in finding finance for new schools, so they sought ways to do the same in other markets. It was a huge success, so we started doing the same in healthcare. Here’s what we found:

During 2023, healthcare systems, hospitals, and practices made progress rebounding from the pandemic, but significant headwinds persist. The financial picture for many health systems, hospitals, and practices has brightened somewhat in 2024, but, according to the St. Louis Business Journal, consensus indicates the industry has bifurcated into financially healthy and unhealthy organizations. For instance, a poll of chief financial officers indicated that only 54% achieved positive margins while 39% reported negative outcomes, and the gulf between stronger and weaker performers seems to be widening. Why?

• Many trends and forces intersect and often conflict, rendering high-stake decision-making more complex.
• Affordability, patient financing, and competitive factors form a key triad influencing the patient financial experience in 2024.
• Technology investment remains a priority, especially in revenue cycle automation, artificial intelligence, and cybersecurity; but financial challenges, like getting paid for the work they’d already done, restrains many providers.

This year, 57% of C-suite executives consider revenue growth to be their top strategic initiative. The most active expansion paths include:

• Outpatient services
• Telehealth
• Mergers and acquisitions

But they can’t do any of these without money, so we help healthcare providers find money to achieve their objectives. We have determined it’s one of 4 things that stands in the way of financial success:

• 1. A weak strategy that doesn’t encompasses mission, goals, and culture
  2. An anemic plan to execute the strategy, involving old technology, reluctance to change, and a weak commitment to patient care
  3. Talent vulnerability which includes an inability to hire and retain star performers, no one ready for promotion, and insubstantial collaboration
  4. Inadequate focus on the financials, which includes ineffectual leadership, reimbursement, and growth

Recently, we helped a 100-bed hospital in a rural area find $3.5M in six months and created systems that will serve the hospital into perpetuity.

What are some similar opportunities for your leaders to help your clients finance the projects they want to pursue? If you find money for them, not only will you get paid more, but you will establish a trusting relationship with clients who will refer you to others and refuse to do business with your competitors. No matter what industry you’re in, you really aren’t in that business. You’re in the relationship business.