In the rapidly evolving world of healthcare, managing a practice efficiently while staying ahead of industry trends and changes can be a daunting task. Healthcare practices often face the challenge of needing high-level executive leadership without the full-time commitment or expense. This is where the concept of fractional executives comes into play, offering a strategic solution that blends expertise with flexibility.
What are Fractional Executives?
Fractional executives are highly experienced professionals who provide their expertise on a part-time basis. Unlike traditional full-time executives, these professionals may work for multiple organizations, dedicating a fraction of their time to each. This arrangement is particularly beneficial for roles such as Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operating Officer (COO), Chief Human Resources Officer (CHRO), Chief Revenue Officer (CRO), or Chief Marketing Officer (CMO).
Why Hire a Fractional Executive?
There are many reasons an organization might hire a fractional executive. In some cases, fractional executives can fill an interim need while searching for a full-time hire. For many small- to mid-size practices, hiring a full-time executive may not be financially feasible, or even necessary, so fractional executives can provide an excellent complement to an existing administrative team.
One of the most significant advantages of hiring a fractional executive is cost effectiveness. A fractional executive provides your practice with experienced leadership, but the cost and time effort are customized to your organization’s budget and needs.
Fractional executives bring a wealth of knowledge and experience from working with multiple organizations. Sometimes these executives are focused on a single specialty or have experience with multiple specialties. The diversity of their experience can be invaluable, offering fresh perspectives and innovative solutions that a practice may not have considered. A fractional executive can introduce best practices and strategies that have proven successful elsewhere.
A fractional executive can provide the necessary leadership during critical growth phases, strategic pivots, or challenging times without the long-term commitment. This flexibility allows practices to scale their executive involvement up or down based on current needs.
An external fractional executive can offer an unbiased, objective perspective on the practice’s operations. This external viewpoint can be crucial for identifying areas of improvement, driving change, and ensuring that decisions are made in the best interest of the organization.
By delegating executive responsibilities to a fractional hire, physicians and/or healthcare practice administration can focus on their core competencies. This allows medical professionals to concentrate on patient care, knowing that the strategic and operational aspects of the business are in capable hands.
Fractional executives are typically seasoned professionals who can hit the ground running. Their experience enables them to quickly assess situations, make informed decisions, and implement strategies efficiently. This agility can be crucial in the fast-paced healthcare environment where timely decision-making is often essential.
Fractional Executive Examples
Consider a healthcare practice that wishes to improve the performance of some of its service lines. The practice needs strategic guidance to manage growth but does not need and cannot afford a full-time executive. Hiring a fractional COO or CRO with a proven track record in improving operations and increasing practice revenue can help the practice successfully achieve its objectives. In this example, the fractional executive might be engaged with the practice for a fixed period of time to tackle acute issues, or on an ongoing basis to provide long-term support.
Another example is a small clinic with the objective to enhance its financial health. A fractional CFO can step in to streamline financial operations, implement effective budgeting processes, and identify cost-saving opportunities. Once the clinic’s financial health stabilizes, the fractional CFO can transition out, having provided immense value without the long-term financial commitment.
SMSC provides a comprehensive suite of practice management services that helps build and sustain successful, thriving clinical organizations. We have expert teams that provide fractional executive services as well as support in areas such as physician recruitment, credentialing and other medical staff services, payor contracting, financial strategy, marketing, and more.
Learn more about the fractional executive services that we provide.