Nonprofit organizations have historically played, and continue to play, a significant role in the delivery of healthcare services in the United States. It is estimated that about 60 percent of community hospitals, 30 percent of nursing homes, and 17 percent of home health care agencies are nonprofit. While these organizations constitute an important component of the American healthcare system, their future remains uncertain due to the adverse effects of economic and regulatory forces.
Almost a decade after the start of the Great Recession, most nonprofit healthcare organizations are still trying to navigate through an uncertain economic environment. The scarcity of resources has further increased competition for capital infusion among nonprofits. To further add to the problem, the number of people without health insurance has increased sharply as the Trump administration attempts to replace Obamacare with their own health-care reform. To bridge the gap, non-for-profit healthcare institutions are required to run more aggressive fundraising campaigns to generate more revenue to serve the needy.
To devise effective fundraising and marketing strategies, it is important for healthcare nonprofits to identify the source of funding to market to the appropriate demographic. Since nonprofit healthcare organizations generate funds from a variety of sources, including individuals, institutions, and foundations, it is important to maintain a diversified fundraising approach with a focus on building and cultivating relationships with individual donors.
Human resource shortage is another challenge that continues to plague the growth of philanthropic healthcare organizations. While the shortage of skilled health care workers is a serious constraint for all healthcare organizations, nonprofits face serious challenges in the achievement of goals. These institutions use many volunteers to fill the gaps and support the healthcare professionals, but this once robust resource is also dwindling.
Due to the changing environment and the significance of the trends noted above, it is important now that even before for nonprofit organizations to devise a game-changing strategy that can help them stay competitive and productive.
Driven by an increased need for transparency and accountability, as well as due to mergers and acquisitions resulting from the implementation of the Affordable Care Act, the evolution of governance practices remains the primary way to anticipate challenges and respond to them in a proactive and effective manner for healthcare organizations. Allen Austin offers specialized leadership advisory and executive search services to organizations facing a governance dilemma.
Utilizing our diverse experience and in-depth expertise, we help nonprofit healthcare organizations achieve sustainable results by helping them attract, inspire, and retain health professionals, as well as community leaders who are self-motivated to work for the health and wellbeing of the society. In addition to this, with our leadership advisory services, we assist the leaders of healthcare nonprofits to anticipate future challenges and devise a strategy that can help them avoid regulatory risks, while maintaining high levels of transparency, ethics, and service quality.