Succession planning is a critical aspect of healthcare management. For long-term practice success, there needs to be a good plan for senior leaders, both clinical and non-clinical, who will someday leave the practice.
Succession planning takes time and effort from the administrator and the practice shareholders. Being proactive with succession planning will help ease the burden on the practice when leaders depart.
At times, administrators may feel as though they are reactive to problems, but when looking at the strategic plan of the organization, they must be proactive in succession planning. There is a significant cost associated with hiring and training new staff members. The cost of recruiting and training a new employee is double the salary of the person being replaced.1 As the baby boomers near retirement, it is crucial for healthcare leaders to determine the next leaders within their respective organizations. Succession planning allows the administrator to have a plan when a key member leaves or retires.