a brief commentary by Bridge Partners LLC

Current demographics show that the healthcare sector in the US (hospitals, healthcare systems, academic healthcare centers, health plans, insurance providers, and federal organizations) is faced with a more diverse patient-base than ever before, and this demographic trend is set to continue.

It is projected that in 2050, Hispanics will make up 24.4% of the US population (an increase of 188%); Asian/Pacific Islanders will make up 8% (an increase of 213%); Blacks will comprise 14.6% of the population (a 71% increase); and Non-Hispanic Whites will increase by 7% to make up a total of 50.1% of the nation’s population.

This change in America’s demographic poses several questions for the healthcare sector. Are healthcare providers equipped to provide services to an increasingly diverse population in the US? How will they compete with one another for the nation’s best administrators/management, faculty and medical staff? What steps can healthcare organizations take in the short-term that will support them in better-serving the needs of an increasingly diverse population in the future, positioning them as leaders in health services provision, and as employers of choice?

The Business Case for Increased Diversity of Healthcare Practitioners

Healthcare institutions can benefit enormously as a result of diversifying their patient-facing workforce. The first, and perhaps most important, benefit is improved quality of care. The need for diversity in healthcare begins with the primary concern of all healthcare providers - patients. Much like their symptoms and ailments, patients cannot be treated in a one-size-fits all manner.

A diverse healthcare workforce makes communication with, and ultimately treatment of, a diverse patient base more effective. For example, research by the Patient Advocate Foundation has shown that African American and Hispanic communities in particular face increased health challenges due to the higher than normal incidence of some diseases, with the most prevalent being cancer, diabetes, heart and kidney disease.

The healthcare issues that ethnic minority patients face can be compounded by language and cultural misunderstandings, hindering effective communication between patients and the medical staff, and potentially leading to inadequate or inferior service, damaging the doctor-patient relationship.

Conversely, when healthcare organizations develop close relationships with patients and their communities, the benefits include better utilization of resources, services tailored to meet unique community needs, more substantive data and research information, better physician relationships and referrals, and increased loyalty amongst both staff and patients.

The demographic and disease management statistics make the business case for a more diverse healthcare workforce clear. However, there remains great room for improvement.

According to the 2008 US Department of Labor statistics, the number of diverse physicians and surgeons did not reflect that of the population (6.2% Black or African-American; 7.8% Asian; and 4.7% Hispanic/Latino). The proportion of diverse Registered Nurses was 10% for African Americans, 7.8% for Asians, and 4.7% for Hispanic/Latinos. Clearly there is more to be done to close the gap between healthcare practitioners and the populations that they serve.

The Business Case for Increased Diversity in Healthcare Administration & Leadership

In addition to increasing diversity among healthcare practitioners, it is also imperative for healthcare organizations to build a diverse senior management team that will reflect its employee and patient-base. This will ensure a continually fresh perspective on how healthcare organizations provide culturally competent care and meet the emerging needs of an increasingly diverse community.

However, here too there is room for improvement. A 1992 study conducted by the American College of Healthcare Executives (ACHE) and the National Association of Health Services Executives (NAHSE) showed that minorities represented 20% of hospital employees but less than 1% of senior-level management positions.

In the nearly 17 years since these statistics were released, while the issue of leadership diversity in healthcare has been highlighted, and the business case has become even clearer as the result of an increasingly diverse demographic, sadly the statistics have not improved dramatically.

The negative impact of this is not just reflected in health services provided - organizations that fail to demonstrate a commitment to diversity in their own senior management team will likely also be adversely affected when it comes to recruitment and retention. These organizations have been shown to lose significant numbers of their high-potential diversity hires to competitor organizations that offer more obvious opportunities for advancement (mentoring and senior role models are key to retention, particularly for a minority employee base).

However, if potential employees’ perception of an organization is that of one that reaches out to a diverse population and is staffed by a diverse workforce, then recruitment initiatives will benefit, resulting in an increasingly diverse employee base.

The cost to businesses of not being adequately diverse is very real. Research has shown that candidates actively eliminate consideration of organizations that demonstrate a lack of ethnic or gender diversity.

Conclusion

The rapidly changing demographics of the US should serve as a catalyst for healthcare providers to review current diversity and inclusion practices and make improvements where needed. The results of doing so will include improved healthcare administration, innovative solutions to healthcare issues, increased cultural competency, a more engaged and committed workforce, and improved community outreach and patient-doctor relationships.

When it comes to healthcare, the case for leadership and practitioner diversity can no longer be viewed as a matter of choice.