It is not unusual for hospitals and health systems to hire external candidates as CEOs, particularly in recent years.
One reason an external candidate might have a competitive advantage over an internal candidate is previous CEO experience, Michelle Johnson, senior partner at executive search firm WittKieffer's healthcare practice, told Becker's.
"I think when there is less of a margin for error, organizations sometimes put a premium on that 'been there, done that' level of expertise and experience," Ms. Johnson said.
Sometimes an organization is in need of a fresh perspective or there is a mandate for change, which naturally lends itself toward external consideration, she said.
A potential concern when hiring outside CEOs is that stakeholders might not know exactly how a new hire will lead. Internal candidates can have the advantage of already understanding the constituencies, communities and local market dynamics, Ms. Johnson said.
However, internal candidates also tend to need more leadership development through mentorship and support, she added.
Phil Wright, CEO of Memorial Regional Hospital South in Hollywood, Fla., stepped into the role in October. He brought more than 25 years of leadership experience to the role, previously having served as chief business development officer and COO of AdventHealth Ocala (Fla.), formerly Munroe Regional Medical Center.
Building relationships and gaining trust with staff and stakeholders were the most important factors in guiding a smooth transition to the new organization, Mr. Wright told Becker's.
Listening — done through town halls and meet and greets — was the best way to achieve those goals, as it provides a greater understanding of concerns, strengths and weaknesses to inform future decision-making, he said.
Mr. Wright prioritized this for the first three to six months, then developed strategic ideas and a vision for where the organization should go based on those previous conversations. It is a formula that has worked for him in the past, he said.
"And hopefully along the way, there are a few quick wins that you can obtain while you're in the new position that help with trust-building, so people see that you're engaged and really tuned into what's happening with the organization," Mr. Wright said.
He also noted that it is necessary for new CEOs to understand their unique situation, given that CEOs are brought in externally for various reasons.
"Knowing the assignment, knowing the culture of the organization, the history of the organization, and having a clear understanding of what it is that the organization wants from you as a CEO is pretty important," Mr. Wright said.