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The Physician CEO Advantage: Why Leadership Training Belongs in Medical Education


Healthcare is inherently a high-stress field, requiring constant adaptability, critical decision-making and steadfast resilience in the face of unpredictable challenges. Effective leadership in this environment demands a unique combination of skills: the ability to navigate regulatory changes, leverage medical advancements, address complex patient needs and ensure organizational stability. Physicians, who operate daily within these high-stress settings, are uniquely equipped to lead in such demanding environments. Their firsthand experience enables them to understand the pressures faced by healthcare teams as well as the intricate balance between clinical priorities and financial considerations. This blend of expertise positions physicians as strong candidates to drive healthcare organizations toward success in an ever-changing landscape.

Physicians bring a unique advantage to the Chief Executive Officer (CEO) role in healthcare organizations (HCOs). Their deep understanding of clinical workflows and workplace culture allow them to make informed decisions that optimize efficiency and improve quality of care. Studies have shown that physician executives are more likely to utilize evidence-based research emphasizing quality metrics and patient outcomes to support their decisions. Large hospital systems led by physicians in 2015 were found to have higher US World News Ratings (USNWR) and bed usage rates than hospitals led by nonphysicians without a significant difference in financial performance. Led by their clinical expertise, physician-CEOs can champion initiatives that improve care coordination and reduce wait times, ultimately leading to a more positive and effective healthcare system for all stakeholders.

Since the COVID-19 pandemic, we have seen a greater number of physician-CEOs in top hospital systems. Physicians and clinicians in HCO management have proved to be more effective in crisis situations. During the pandemic, when hospitals experienced the most strain with regards to capacity and resource-allocation, physician-led systems were associated with better organizational performance, higher rates of patient satisfaction and improved capacity utilization. Since the pandemic, we have seen a rise in physicians taking on the CEO role in large hospital systems. In 2019, before the pandemic, USWNR’s Hospital “Honor Roll” listed 21 top hospitals, 13 of which were physician-managed (physicians on the board) and six of which were physician-led (physician-CEO). After the pandemic, the 2023 honor roll lists 23 hospitals, 15 of which are physician-led, demonstrating a clear increase in physicians filling the highest role in hospital system management.

When asked about what attributes of physician-leaders might account for better organizational performance, former Cleveland Clinic CEO Dr. Toby Cosgrove answered, “credibility … peer-to-peer credibility.” Certainly, the professional experience of a physician within the healthcare industry can give them more credibility with hospital staff. Many physicians already possess the essential qualities of a great leader, as these are learned skills given their role in the healthcare team. Their training gives them experience in crisis management, multi-tasking, and managing cognitive biases.  However, the leadership style that most physicians practice may be less compatible with the necessities of executive positions in healthcare organizations. Dr. Victor Dzau, president of the National Academy of Medicine, argues that “physicians have traditionally been trained in ‘command and control’ environments as ‘heroic lone healers’ who are collaboratively challenged.” So how can we bridge this gap to create better physician-leaders? Despite the extensive education provided to medical trainees, there seems to be a lack of a formal education on fundamental leadership skills. There are at least 60 MD/MBA dual degree programs in the US. However, beyond this, it is essential for medical schools to incorporate formal leadership training into their curricula with emphasis on holistic thinking and systems interventions rather than command and control styles. Regardless of whether students choose to pursue formal education in business with an MBA program, all physicians are thrust into the world of leadership and would surely benefit from formal training.

While fostering physician-leaders who can rise to CEO positions is valuable, the true impact of leadership training in medical school extends far beyond the executive board. By equipping future doctors with the skills to effectively manage teams, navigate complex healthcare systems, and prioritize patient-centered care, we can achieve positive change throughout the healthcare system. Specifically, leadership training can directly improve care coordination, leading to better patient experiences and potentially reducing medical errors. This can then translate into improved patient outcomes and increased healthcare system efficiency, ultimately contributing to greater financial stability. Investing in physician leadership early in one’s career, whether in medical school or residency or as an attending, is not just about individual career advancement; it’s about building a stronger, more effective healthcare system for all.

Kush Savsani (1 Posts)

Contributing Writer

Virginia Commonwealth University School of Medicine


Kush is a medical student at Virginia Commonwealth University School of Medicine, Class of 2028. In 2022, he graduated from Virginia Commonwealth University with a Bachelor of Science in biology. In 2024, he earned a Master of Business Administration. He enjoys running, learning languages, and watching movies in his free time.