The Missing Piece in Annual Planning: Engaging Clinical Leadership and Providers
As we approach the annual planning season, many organizations are meticulously laying out their revenue projections and anticipated expenses for 2025. This process is often carried out in the secluded confines of the finance department, where the goal is to craft the perfect financial scenario—one that promises growth and robust returns in the year ahead. After the finance team has finalized this ideal plan, it is usually presented to the management team for review, allowing them to poke holes in it and refine it into something executable.
However, there’s a crucial element that I see frequently overlooked in this process: the involvement of clinical leadership and providers in the planning stages, particularly when it comes to setting production targets.
The Overlooked Step: Involving Clinical Leadership
Before finalizing those production numbers for each provider, have you taken the time to consult with your clinical leadership team? These leaders are the ones who have a direct line of sight into what is realistically achievable on the ground. They understand the nuances of clinical operations, the constraints of provider schedules, and the demands of patient care. Without their input, you risk setting targets that are not only unrealistic but also demotivating for your clinical teams.
The Reality Check: Are the Numbers Achievable?
One of the most common mistakes in the annual planning process is setting production targets that look great on paper but are out of touch with reality. This disconnect often stems from a lack of communication between finance and clinical leadership. For example, are the planned hours for each provider aligned with their actual availability and capacity? Are the production numbers based on historical data, or are they inflated to meet financial goals without considering the operational feasibility?
By involving clinical leadership early in the planning process, you can ensure that the production targets are not only ambitious but also achievable. This collaboration leads to more accurate projections, better alignment across the organization, and a higher likelihood of meeting—or even exceeding—those targets.
Socializing the Plan: Engaging Providers
Once the production targets have been vetted by clinical leadership, the next critical step is to socialize these targets with the providers themselves. Some may argue that this is unnecessary or too time-consuming, but in reality, it is an essential part of creating an engaged and motivated team.
Providers are the ones on the front lines, delivering care and driving revenue. If they are not on board with the targets set for them, or if they feel that those targets are unrealistic, it can lead to frustration, disengagement, and ultimately, underperformance. On the other hand, when providers are involved in the planning process and understand the rationale behind the targets, they are more likely to feel a sense of ownership and commitment to achieving those goals.
The Consequences of Skipping This Step
Organizations that bypass these critical steps often find themselves missing their targets and struggling with a disjointed and disengaged workforce. The disconnect between the financial goals set by the finance team and the operational realities faced by providers creates friction, erodes trust, and hinders performance.
How to Improve Your Planning Process
Early Involvement: Involve clinical leadership from the outset of the planning process. Their insights are invaluable in setting realistic and achievable targets.
Collaborative Target Setting: Work with clinical leadership to ensure that production numbers are based on real data and are aligned with provider capacity.
Socialize the Plan: Communicate the final targets to providers, explaining the rationale behind the numbers and how they align with the overall goals of the organization.
Ongoing Feedback: Throughout the year, maintain an open line of communication with both clinical leadership and providers. Regularly review performance against targets and be willing to adjust if necessary.
By taking these steps, you can create a more cohesive, aligned, and motivated organization—one that is well-positioned to meet its financial goals and deliver exceptional patient care in 2025 and beyond.