HR Connection Blog

Even though our friends in the Mid-Atlantic don’t feel it right now, the arrival of HIMSS reminds us that spring can’t be too far behind. And with spring come more trade shows, user group meetings, and industry group state chapter conferences. Although there are excellent events in the fall also, I always found the spring to be particularly energizing.

So how should we feel heading into this spring? Are things turning around? Are we truly ready to put this recession behind us? Do we have reasons to be upbeat?

Maybe so. While last week could turn out to be an aberration, there were three strategic vendor acquisitions announced. It’s been a long time since we’ve seen that.

This news could be encouraging to many: healthcare investors anticipating a return of a market for investment exits; entrepreneurs eager to get their ideas and businesses funded; and those further along eyeing a potential liquidity event.

Of course, if you work for one of the acquired companies, or if your vendor was acquired, you may feel anxious. But that anxiety is associated more with healthy market activity than the “world is caving in” mentality that we’ve all seen.

Beyond the investor and vendor communities, another gauge is the HIT labor market. To me this is an accurate reflection of the state of the industry. Hiring, competition for talent, hiring freezes, and lifting of these freezes are all indicators of confidence or lack thereof.

Since the end of last year, and especially this year, most candidates I’ve encountered have been encouraged. Unlike six months ago, when fear could be heard in their voices, they now discuss the number of opportunities they are considering. It’s not yet the “candidate’s market” predicted by the country’s demographics, but competition for strong talent is beginning to heat up. And that is a good sign.

It’s a good sign if you’re one of the many who were let go during the downturn, or if you’re an executive or department head deciding whether to make that key hire. It’s also a good sign if you’re awaiting approval to fill that important position that’s been vacant. Maybe now is the time to petition for that approval.

Whether you’re looking forward to HIMSS, AHIP, or another conference, or attending a state chapter or user group meeting, or looking to get back to work, do so with reassurance and optimism. As we used to say when I worked on the back of a garbage truck one summer, “things are definitely picking up.”

Jim Gibson has been in healthcare for 25 years. In 2002 he founded Gibson Consultants after several years in healthcare IT and group health insurance. Gibson Consultants is a national search firm specializing in healthcare IT companies. Like Jim, the other professionals of Gibson Consultants enjoyed successful healthcare careers before turning to executive search. Follow Jim on twitter http://twitter.com/jim__gibson or reach him at (203) 431-1536 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

“Thank goodness I have a job.”

A sentiment often felt when a recession hits. As belts are tightened, budgets slashed, and colleagues laid off, many take solace in knowing they’ve been spared. Issues like job satisfaction, personal fulfillment, equitable work schedules, and – yes – even pay, take a back seat to gratitude for simply remaining employed.

But that was a year ago. It’s starting to feel different now. Now, we’re reading about all the new jobs that will be created by the ARRA. First there was David Blumenthal’s prediction of 50,000 new jobs. Last week the stage one “meaningful use” criteria were released. Their release makes the expected growth seem more real. As if proof, the CEO of an EMR company was in the trade press this week discussing plans to hire hundreds of new employees in 2010. And that’s just one company

It’s widely accepted that economic recoveries are fueled by confidence. While the rest of the world is becoming cautiously optimistic, it’s hard to ignore the growing confidence within healthcare IT. Something special is about to happen.

Yet, as recessions abate and confidence sets in, so does one inevitable dynamic that’s seldom noticed – until it affects productivity. That is employee turnover. It happens at the end of every recession, and it affects hospitals, health plans, physician practices, and most other places of employment.

When a recession hits, people are happy just to keep their jobs. But then as a recovery appears, people begin to feel more confident. They abandon the "hunker down" mentality and raise their standards for job satisfaction. They begin to think about career options.

The polls bear this out. For the past several weeks, job satisfaction is reported to be down significantly. This is across industries and up and down the food chain. No sector or level seems to be immune.

As job satisfaction falls, it can lead to morale issues and turnover…or it can be a wake-up call.

Right now is probably a good time to pay closer attention to your troops and their outlook and expectations. Start the new year with a one-on-one with all direct reports. Thank them sincerely for hanging in there through these tough several months. Many took on more work as a result of reduced staffs and budgets. Jointly evaluate plans and expectations, both yours and theirs. Share your vision. It’s a special time to be in healthcare IT. Let them feel that they’re part of it and that their contributions do matter. Make employee morale one of your top priorities for 2010.

Jim Gibson has been in healthcare for 25 years. In 2002 he founded Gibson Consultants after several years in healthcare IT and group health insurance. Gibson Consultants is a national search firm specializing in healthcare IT companies. Like Jim, the other professionals of Gibson Consultants enjoyed successful healthcare careers before turning to executive search. (203) 431-1536 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . www.gibson-consultants.com/

It’s no secret that someone hit the “pause” button.

As the economy has tanked, hospital and physician IT contracts have stalled. Projects with prior commitments have mostly proceeded, but at a slower, drawn out pace. Discussions of new systems or projects have fallen largely on deaf ears, unless they’ve been related to EHRs or interoperability, and even then, it’s often been just talk.

It’s been no better in the payor world. Declining enrollments and increasing loss ratios have put financial restrictions on IT spending. At the same time, the need to overhaul or replace core administration systems, such as claims and care management, has caused additional anxiety…especially given the possibility of covering much of the currently uninsured population.

As a group, the HIT vendors have felt these effects flow down to them. The larger firms have had layoffs while some smaller firms, often the incubators of innovation, have had trouble getting funded.

But this is beginning to change, and many believe the change could be dramatic. For the HIT executive, this belief provides less comfort than it should. The current HIT labor pool, with its excess capacity, hides a latent disconnect between human capital supply and demand.

The scenario is this: as things loosen up and contracts begin to get signed, there will be a snowball effect. There will be a rush for implementations and pressure to compress implementation timeframes. Once the waiting stops, everything will become urgent. The classic liberation of pent-up demand.

This of course will be exacerbated by the perception, if not reality, of David Blumenthal’s recent remarks at the annual American Health Information Management Association (AHIMA) convention. The National Coordinator of Health Information Technology predicted 50,000 new HIT jobs will be created as a result of the ARRA.

As HIT comes roaring out of this state of suspended animation, we will likely face a shortage of high quality talent, reminiscent of the Y2K programmer shortage. Providers, payors, vendors, and consulting firms will compete for accomplished project managers, implementation consultants, business analysts, and maybe even programmers.

The reactive HIT executive may be left wondering where the legions of “available” talent went. The forward thinking HIT executive will look to get talent lined up now for the coming boom. Managing this can be tricky, but waiting until the bandwagon gets rolling could be a strategic mistake.

Jim Gibson has been in healthcare for 25 years. In 2002 he founded Gibson Consultants after several years in healthcare IT and group health insurance. Gibson Consultants is a national search firm specializing in healthcare IT companies. Like Jim, the other professionals of Gibson Consultants enjoyed successful healthcare careers before turning to executive search. (203) 431-1536 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it . www.gibson-consultants.com/