Abstract

A key challenge facing healthcare leaders is how to implement changes successfully. For change to occur in healthcare, leaders must be proactive, and they must have an ability to adapt to new policies and practices. Data from 105 healthcare leaders were used to address the question of to what extent leadership style, leader efficacy, seniority, and gender predict healthcare leaders’ readiness to lead change. The healthcare leaders were panel members of Centiment, an online survey research company that specializes in surveying hard-to-reach participants. A correlation analysis using Spearman’s rho tested the relationship between leadership style and leader efficacy, and multiple regression analyses predicted the readiness of healthcare leaders in leading the implementation of change. The results of the multiple regression analysis show that transformational leadership and leader efficacy are statistically significant in change implementation. However, the results also reveal that transactional and passive leadership, seniority, and gender are not statistically significance. The results suggest that seniority does not moderate the relationship between the leadership styles and organizational readiness for implementing change, and gender does not moderate the interaction between leader efficacy and organizational readiness for implementing change. Healthcare leaders can use the results of this study to mitigate the rate of failure while implementing change.   Key words: Organizational change, transformational leadership, transactional leadership, passive-avoidant leadership, leader efficacy, organizational readiness for implementing change, healthcare leadership.

Highlights

  • The U.S Centers for Medicare and Medicaid Services reported in 2017 that Americans spent $3.5 trillion on healthcare (17.9% of gross domestic product) and projected that this number would increase to $6.0 trillion 2027 (Centers for Medicare and Medicaid Services, 2019)

  • SD 0.66919 0.71837 0.80229 13.17169 0.84420 participants indicated that they manage healthcare professionals, Table 1 reflects that 18.10% (n = 19) were Chief executive officer (CEO), 2.86% (n = 3) were Chief information officer (CIO), 6.67% (n = 7) were Chief technical officer (CTO), 4.76% (n = 5) were CNIO/CMIOs, 5.71% (n = 6) were VP/IT, 20.95% (n = 22) were DIR/IT, and 40.95% (n = 43) were denoted as other

  • This study analyzes the effect of transformation, transactional, and passive-avoidant leadership styles and leader efficacy on predicting the readiness of healthcare leaders to lead the implementation of change in the healthcare industry

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Summary

Introduction

The U.S Centers for Medicare and Medicaid Services reported in 2017 that Americans spent $3.5 trillion on healthcare (17.9% of gross domestic product) and projected that this number would increase to $6.0 trillion 2027 (Centers for Medicare and Medicaid Services, 2019). Healthcare organizations must implement effective change management strategies to improve the quality of care for patients with a view toward providing benefits and value for them (Nielsen et al, 2020). Innovations or changes in technology are necessary to improve the quality of care for patients, which can help to keep the healthcare costs down (Nagy, 2017). Researchers have consistently asserted that approximately 70% of organizational changes are not successful (Jones-Schenk, 2019), and effective leadership is critical to the success of an organization (Nagendra and Faroogui, 2016). Organizations may not employ an appropriate change model, and leaders may not possess the right leadership style to implement successful change initiatives (Lumbers, 2018). Leaders may not have effective leader efficacy skills to steer the successful implementation of a change project (Bayraktar and Jiménez, 2020)

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