Is a health care executive on board? The health care industry is one tough business--breeding a pool of board candidates experienced in dealing with the most difficult challenges facing Corporate America today.

• Author: Snyder, Lynn Shapiro
• Position: DIRECTOR RECRUITMENT

IN THE UNITED STATES, most companies, regardless of industry, are health care companies. That is because our health benefits system is based primarily upon having employers pay all or part of the premium costs for an employee's family health care insurance benefits. The amount these employers spend on health care premiums has been increasing every year--increasing more quickly than any other company expense. It is no longer unusual for an automaker to spend more on health care--for each car it produces--than on steel. As a result, it is no surprise that a Hewitt Associates study of 650-plus major U.S. firms found 96 percent of CEOs and CFOs "critically or significantly" concerned with corporate health benefits costs.

Despite the concerns circling health care costs, only 7.1 percent of U.S. Fortune 500 boards currently include someone who might be a great resource to management for tackling this particularly challenging issue--a health care executive. (This statistic is based upon a random sample of Fortune 500 boards that was then reviewed by the WBL Foundation in November 2007.) Nor do these companies realize that health care executives also could guide them through other tough business challenges based on the lessons these executives have learned from managing a business in the health care industry.

Do not be fooled by the word "care": While the health care industry is predicated on caring and healing, it is one tough industry.

For example, executives in the health care industry battle severe workforce shortages, federal and state regulations, frequent mergers, vertical integration schemes, disintegration, outsourcing, conversions, bankruptcies, public offerings, and much more. All of this is happening in an industry representing 16 percent of the U.S. gross domestic product--nearly $2 trillion and growing.

Put their skills to work

Health care executives working in such a dynamic industry sector possess invaluable business skills. They have extensive experience dealing with the most difficult challenges facing business today. The time has come for Corporate America to put those skills to work for the benefit of all industry sectors by including a seasoned health care executive on each board of directors. Consider the following:

* Recruiting and Retaining Skilled Workers: The health care industry, which employs more than 11 million workers, faces significant workforce challenges. For example, specialized nurses now top the list for the...