The Good News

Organizations employing primary care medical providers—such as doctors, nurse practitioners, and physician assistants—are benefiting from an increasing pool of available talent. As the financial viability of independent practices declines, more primary care physicians are seeking employment opportunities rather than forming their own group practices to achieve economies of scale.

The Challenge

Transforming a large group of employed providers into a high-performing delivery system that achieves high quality and low cost while ensuring patient and provider satisfaction is a significant challenge. Success stories are rare, and many administrators struggle with managing primary care providers effectively. Failures in this area often dominate discussions and can even lead to unionization efforts among provider staff.

Understanding the Problem

This issue is not insurmountable. The first step is recognizing that providers are intelligent professionals who understand the balance between business objectives and meeting healthcare needs. The most common mistake administrators make is in choosing the messenger. Despite their best efforts, practice administrators often face a credibility gap with providers due to a lack of shared clinical experience. Primary care practice is both rewarding and extremely demanding, with little margin for error.

The Role of a Chief Medical Officer (CMO)

A Chief Medical Officer (CMO) can effectively bridge this gap if they possess both business acumen and communication skills, in addition to being respected as a clinical leader. A CMO promoted merely based on longevity or clinical expertise may lack credibility in the executive suite and among providers. Such CMOs may be seen as mere intermediaries without real agency from the administration.

An experienced CMO can gain the trust of providers by identifying opportunities to streamline their work, utilizing telehealth, and implementing other creative access solutions. These measures can reduce stress for providers and increase revenue for the organization. Once trust is established, providers are more willing to engage in discussions about productivity, value-based compensation, and the importance of the patient experience.

Investing in Medical Leadership

Experienced CMOs are in short supply, but they can be developed with the right training and mentorship. C-suite executives must commit resources to enhance the skills of medical leadership. Given the crucial role CMOs play, the return on investment in their development will be highly positive.

By addressing these issues thoughtfully and strategically, organizations can improve their management of primary care providers and achieve better outcomes for both patients and providers.