A growing trend in the healthcare provider sector is the use of outsourced financial leadership positions. This trend is being driven by several factors.

1. Remote Work Capabilities

As the pandemic supercharged the development and use of remote work platforms (e.g., Zoom, Teams, etc.), the cost to outsource a portion of work became affordable. When all leadership positions were on-site, it rarely made financial sense to pay for the travel and lodging to bring someone in to provide part-time leadership.
With remote work capabilities, it is much easier to contract a few hours a week for someone to provide leadership in a specific area of need.

2. Industry Consolidation

Healthcare providers continue to consolidate, resulting in many leadership jobs moving to centralized locations. This leaves less people in the hiring pool, especially in rural areas.
In addition, consolidation leads to jobs being more specialized, with less people having the broad experience necessary for certain leadership positions. For example, a small hospital usually requires a revenue cycle leader who understands the entire process from scheduling to collection. In a larger health system, few people work outside of their narrow function.

3. Financial Pressures

While best practice is to develop a succession plan for key leadership positions, continued financial pressures on providers make it difficult to fund having a leader-in-training. Positions without direct patient care are often the first to be reduced in cost-cutting efforts, leaving no one ready to step into a vacant leadership position.

How Outsourcing Leadership Can Help

There are many ways to use outsourced leadership in healthcare. Here are some common use cases.

1. Transitional 

When a position becomes vacant, hiring the right full-time person can take months. It may be a good idea to contract for a part-time leader to bridge the time until a new leader is on-boarded.

2. Access to Specialized Expertise

Especially in the case of new leaders, there can often be some key industry knowledge that the new person needs to learn. Contracting someone with that specialized knowledge can assist the new leader to get up to speed.

3. Specific Projects

Many times, a large system change or reengineering project can take more time than the financial leader can spare. A short-term outsourced leader can provide project leadership.

4. Partial Positions

Some leadership positions don’t require a full-time employee, but the organization doesn’t have someone with the time and/or expertise to provide the leadership. This is a good time to consider an outsourced financial leadership position.

Conclusion

Outsourcing finance leadership positions is a growing trend for healthcare providers. There are many situations where it can present a strategic advantage for healthcare provider organizations. By leveraging specialized expertise, and cost-effective solutions, providers can enhance their financial operations while focusing on their core mission of delivering exceptional patient care. As the healthcare industry continues to evolve, embracing outsourcing can be a pivotal step towards achieving long-term success and sustainability.

Published: 06/18/2025

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