The physician executive is no longer an outlier. Across hospitals, health systems, and even biotech startups, doctors are increasingly stepping into CEO and senior leadership roles. This shift reflects a growing recognition that clinical expertise is not just valuable at the bedside but also in the boardroom, where decisions about strategy, investment, and culture shape the future of care delivery.
A recent McKinsey report, The Next Specialty: The Physician CEO, highlights this trend as a defining development in healthcare leadership, noting that physicians are uniquely positioned to bridge the gap between clinical realities and corporate imperatives.
Sermo poll data reinforces this momentum: more than half of physicians in the community report having worked under a physician-led executive. Their experiences reveal both optimism and skepticism about what happens when doctors trade white coats for corner offices.
As one Sermo member in medical oncology observed, “Doctors increasingly lead startups, digital health ventures, and biotech firms—especially where deep domain knowledge drives product-market fit.” Another, a resident in medical oncology, framed the role more broadly, saying, “The CEO is the chief architect of a company’s destiny, combining the vision of a strategist with the execution skills of an operational leader to guide the entire organization toward its goals.”
Together, these perspectives capture the essence of the physician executive: a leader who must balance the rigor of clinical training with the demands of corporate stewardship.
Why physician executives matter
When physicians step into executive roles, their clinical expertise becomes more than a credential—it’s a lens that reshapes how organizations make decisions. Nearly half (48%) of Sermo respondents agreed that having a physician in leadership improves day-to-day care. This aligns with findings from the academic literature on clinicians as leaders, which emphasizes that medical training equips doctors with diagnostic reasoning, systems thinking, and a deep understanding of patient needs—all of which can translate into more effective organizational leadership.
The impact extends beyond patient outcomes. Physician executives often improve morale by demonstrating that leadership understands the realities of frontline care. They can anticipate how policy changes ripple through departments, and they’re more likely to prioritize investments that directly affect patient experience and clinician workload. This operational understanding helps bridge the gap between administrative strategy and clinical practice.
As one resident in ophthalmology explained: “I see every day how administrative decisions directly impact clinical work and patient experience. I believe more physicians in leadership roles can bring a valuable perspective: we understand the real needs of departments and know where investments and strategies can truly make a difference. However, becoming a CEO requires management skills that go beyond medical training, so it’s essential to combine clinical expertise with leadership development to effectively guide a healthcare organization.”
Other Sermo members echoed this balance of optimism and caution. A general practice physician noted: “I think a physician CEO is ideal for a health system. That said I have never considered leadership because I enjoy the day-to-day of patient care.” Meanwhile, a neurologist added: “I think having a physician clinical background is better and more helpful than not, but primarily a business background is necessary. I would rather more physicians to better represent us than non-physician clinicians.”
Together, these perspectives highlight both the promise and the complexity of physician-led leadership. Clinical expertise can sharpen decision-making and strengthen trust, but without complementary management skills, the impact may be limited. For more on how physicians are navigating these transitions, see Sermo’s article on navigating change in healthcare.
Barriers to leadership for physicians
For all the promise of physician-led leadership, the path to the executive suite is far from straightforward. Sermo poll data highlights three major barriers:
- Lack of management training (36%)
- Institutional resistance (24%)
- Time constraints from clinical duties (23%)
These challenges reflect both structural and cultural hurdles. Medical education emphasizes clinical mastery, but rarely includes training in finance, operations, or organizational strategy. As one internal medicine physician put it, “Specific training is required for this type of position and most doctors do not have it, at least not as part of our training.”
Institutional resistance compounds the problem. Many health systems still default to administrators with MBAs or long-standing board experience, leaving physicians to prove they belong in leadership. Even when opportunities exist, the demands of clinical practice make it difficult for doctors to carve out the time needed to pursue leadership development. As for leadership resources for physicians, limited pathways and inconsistent mentorship often leave clinicians without the structured support they need to advance.
A pediatric intensive care physician noted, “Leadership is something very important, unfortunately not everyone in this type of position has it.” This underscores the need for intentional cultivation of leadership skills, not just promotion based on seniority or reputation.
Finally, credibility remains a sticking point. Many physicians argue that leaders who step away from clinical practice entirely risk losing touch with frontline realities. As another internal medicine physician explained: “We need more physicians that still have some clinical responsibilities in leadership roles. MBAs and docs who no longer practice have no clue about what our job entails.”
Training and mentorship—bridging the skills gap
If barriers like time, training, and institutional resistance slow physicians’ path to leadership, the solutions are equally clear. Sermo poll data shows that 36% of physicians want MBA-style leadership programs, while 22% emphasize mentorship as the most valuable accelerator. Both reflect a recognition that clinical expertise alone is not enough to run a complex healthcare organization.
Formal education provides the financial, operational, and strategic literacy that complements medical training. As one general practice physician suggested, “I would rather say that a degree of public health or [hospital] administration would be the most appropriate and effective option as a complement.” Others advocate for dual degrees that combine clinical and business acumen. An OB/GYN on Sermo put it succinctly: “I feel that a MD with a MBA would be the perfect candidate to be a Hospital CEO.”
But education alone is not sufficient. Mentorship plays a critical role in preparing physicians for leadership. Experienced executives can demystify governance, expand networks, and help younger clinicians navigate the cultural and political realities of hospital leadership. Without this guidance, many physicians struggle to translate their clinical authority into organizational influence.
Embedding leadership education earlier in medical training could also normalize the idea that physicians belong in executive roles. Residency programs that include rotations in administration, exposure to budgeting, or participation in quality improvement committees give young doctors a head start. This early exposure strengthens system-level decision-making, ensuring that future leaders understand not only how to treat patients, but also how to design systems that deliver care more efficiently and equitably.
The message from Sermo members is clear: the next generation of physician executives will need both formal training and mentorship to succeed. Without deliberate investment in these pathways, the leadership pipeline will remain narrow, and healthcare organizations risk losing the unique perspective that only physician leaders can provide.
Balancing healthcare leadership and patient care
One of the most persistent debates around physician executives is whether leadership roles inevitably pull doctors away from the bedside. For many clinicians, the fear is that stepping into the boardroom means losing touch with patients—the very reason they entered medicine in the first place.
This concern is not unfounded. In Sermo’s polling, 15% of physicians said that physician CEOs actually create more tension or bureaucracy within their organizations. These respondents worry that when doctors trade clinical duties for administrative responsibilities, they risk becoming disconnected from the realities of day-to-day work. As one orthopedic surgeon put it bluntly, “These are choices that must not take away time from assistance…we already have too many bureaucrats.”
Yet others see physician leadership as a way to improve efficiency and scale impact. By guiding system-level decisions, physician executives can influence the care of thousands of patients rather than dozens. They can also streamline processes that reduce clinician burnout and improve patient flow. A general practice physician reflected, “Leadership is more of a personal thing than having a background as a physician. I’ve experienced both very good physician leaders and the opposite.”
These contrasting views highlight the delicate balance physician executives must strike. Too much distance from clinical practice risks credibility and trust; too much time in the clinic can limit their ability to lead effectively. Some organizations have found success with hybrid models, where physician leaders maintain a small percentage of clinical duties while dedicating the majority of their time to executive responsibilities. This approach preserves clinical credibility while ensuring that leadership decisions remain grounded in patient care realities.
The future of physician-led healthcare
Looking ahead, physicians are cautiously optimistic about the role of clinician executives. Many believe that physician leadership can improve system efficiency and ensure that frontline perspectives are represented in boardroom decisions. By aligning business priorities with patient care, physician CEOs have the potential to reduce waste, improve morale, and strengthen trust between clinicians and administrators.
At the same time, Sermo members are quick to point out that physician leadership is not a cure-all. Concerns remain about compensation disparities between executives and frontline staff, as well as the risk of adding new layers of bureaucracy. A general practice physician captured this nuance: “It could be useful to improve the efficiency of the system, but I think it doesn’t necessarily have to be a doctor; to really contribute, a multidisciplinary team would be needed.” This perspective underscores that while physician executives bring unique value, healthcare leadership ultimately thrives when it is collaborative and multidisciplinary.
How organizations can empower the next generation
For health systems, the challenge is to create structures that make physician leadership accessible and sustainable. That means:
- Embedding leadership training into medical education and residency.
- Offering protected time for physicians to pursue executive development without sacrificing clinical responsibilities.
- Building formal mentorship and sponsorship programs that connect aspiring leaders with experienced physician executives.
- Encouraging hybrid roles that allow physician leaders to maintain some clinical practice, preserving credibility with peers.
What aspiring physician CEOs can do
Organizational support is essential, but individual physicians also have agency in shaping their leadership trajectory. Aspiring physician executives can:
- Pursue formal training—whether through an MBA, MPH, or targeted executive education programs.
- Seek mentorship early— identify leaders inside and outside their specialty who can provide guidance and open doors. Joining the Sermo community is a great way to find and connect with mentors on a global scale.
- Take on incremental leadership roles—such as quality improvement projects, committee work, or departmental budgeting.
- Develop financial and operational fluency—learn to read balance sheets, negotiate contracts, and understand payer dynamics.
- Maintain some clinical practice—even a small percentage of patient-facing work can preserve credibility and empathy.
- Cultivate soft skills—communication, negotiation, and conflict resolution are as critical as clinical expertise.
The next generation of physician leaders will be those who can navigate both medicine and management with equal fluency. By combining clinical insight with executive skill, they can bridge the gap between care and corporate leadership—and help design healthcare systems that serve both patients and providers more effectively.
Other questions on physician’s minds
What makes a physician CEO different from a traditional healthcare executive? Physician CEOs combine frontline clinical experience with executive decision-making, grounding strategy in patient care realities. This dual perspective helps align financial and operational choices with clinical outcomes.
How can physicians prepare for leadership roles? By pursuing structured training (MBA, MPH, or executive fellowships), seeking mentorship, and taking on incremental leadership responsibilities such as quality improvement projects or committee work.
Are physician CEOs better for patient care outcomes? Many physicians report that clinician leadership improves day-to-day care and morale. However, outcomes depend on whether clinical expertise is paired with strong management skills and organizational support.
What training is most valuable for doctors seeking executive positions? MBA-style programs, public health or hospital administration degrees, and executive fellowships are most frequently cited by physicians. Mentorship and early exposure to system-level decision-making are also critical.
Join the discussion
Physician executives are reshaping healthcare leadership by bringing clinical insight into the boardroom. Their presence can improve efficiency, strengthen trust, and align business priorities with patient care. But the path is not automatic—without structured training, mentorship, and hybrid models that preserve clinical credibility, many physicians will remain excluded from leadership. The future of healthcare depends on cultivating leaders who are fluent in both medicine and management, capable of bridging the gap between care delivery and corporate strategy. What do you think? Have you worked under a physician executive, or considered leadership yourself? Join the discussion on Sermo and share your perspective with peers shaping the future of healthcare.
