Need a CMO? Fractional Health Executives Are a Win-Win

Did you know there are thousands of digital health startups? These firms are trying to devise new products to improve patient care while struggling to make it in a competitive capital environment.

That’s why each startup could benefit from having its own chief medical officer (CMO). A CMO is a qualified corporate officer who oversees and manages the medical and clinical operations of an organization and who works to align the company’s healthcare offerings with its business goals. CMOs also help answer sticky ethical questions and can provide insight into data.

I have seen this role evolve from a full-time one to a “fractional” position (either part-time or as a consulting relationship) that allows an experienced physician to serve several entities at once. I have also seen non-healthcare firms hire CMOs to help develop smart, effective employee wellness programs and improve customer safety.

Hiring a fractional CMO is a way to attract a person with more expertise while remaining sensitive to the bottom line. Meanwhile, fractional roles allow physicians flexibility, the ability to exercise their entrepreneurial muscle, and an opportunity to make a broad impact.

Full disclosure: I am biased. I serve as a fractional CMO for two healthcare organizations in addition to operating my own healthcare communications and marketing firm. Having a portfolio of activities leaves me more energized and fulfilled.

My own experience has not only been professionally fulfilling but has also highlighted the growing value of fractional executive positions in the healthcare sector. Our medical schools and other training centers may need to adjust to this new reality.

Why Doctors Should Embrace the Role of Fractional CMOs

Burnout is an increasing concern in the medical profession. One of the key contributors to burnout is the relentless focus on the same types of challenges each day and not being able to change the system.

For me, scaling back on emergency department hours while working part-time as a CMO gives me the opportunity to contribute in a different way while reducing stress.

In a start-up, leaders must tackle problems they have never encountered, identify innovative solutions, and execute strategies that could shape the future. Engaging in these new and unfamiliar challenges can reawaken parts of our brains that may have grown dormant amidst our endless paperwork for patients. I have found that startup life is an amazing way to remind myself that, while patient care was my calling, I am also an innovator, strategist, and problem-solver. The opportunity to apply my skills in new and diverse ways has rekindled a passion for the profession and offered a renewed sense of purpose.

Additionally, by diversifying our professional activities through fractional CMO roles, physicians can create a varied portfolio that not only keeps us intellectually engaged, but reduces the monotony that often contributes to burnout. This diversification allows us to channel our expertise into new areas, preventing the fatigue that can come from focusing solely on clinical practice. Remember all the things we did before medical school? We can do them again.

Another benefit for physicians is scaling impact.

Even if you do not totally leave clinical practice — I still practice a few days a month — the scope of the impact is different. When physicians work with start-ups or early-stage companies, the potential for impact is exponential. By contributing our clinical expertise to these organizations, we can help shape innovations that have the potential to transform healthcare on a large scale.

Being a fractional CMO has been an opportunity to extend my reach beyond the walls of the clinic or hospital.

Why Startups Should Choose Fractional CMOs

Health tech companies without clinician leadership risk becoming just another technology company. Having a physician in the C-suite ensures a new firm stays focused on clinical care and that whatever technology is being developed meets the needs of patients and clinicians.

With a physician at the helm of a digital startup, for example, these companies can ensure their solutions are not only innovative, but also practical, safe, and effective in a clinical setting. This focus on patient care and outcomes is what differentiates successful health tech solutions from those that fail to gain traction.

Another significant challenge for early-stage companies is building credibility with investors and stakeholders, including patients, hospitals, and other clinicians. Physicians bring a level of trust and authority to the table, signaling to investors and stakeholders that the company’s products and services are grounded in science and data. This credibility can be a deciding factor in securing funding, partnerships, and buy-in from key stakeholders.

Physicians also often have extensive networks within hospitals, professional societies, and the broader healthcare community. These connections can be invaluable for early-stage companies looking to gain market traction. A CMO can leverage their network to provide advice, facilitate sales, and make introductions to key players in the industry. By tapping into these networks, startups can accelerate their growth, gain insights into market needs, and build relationships with potential customers and partners.

Choosing a fractional CMO over a full-time CMO can provide significant savings for an early-stage company. As one consulting firm explained, fractional CMOs can:

• Establish key process metrics and refine clinical workflows;
• Address costly bottlenecks and inefficiencies; and
• Streamline clinical processes and reduce unnecessary variability, which helps minimize waste and maximize value.

Perhaps most importantly, having clinical leadership involved in the early stages of a company’s development can protect against costly errors and misguided assumptions.

The rise of fractional CMO roles represents a significant opportunity for both physicians and startups. For physicians, it offers a chance to prevent burnout through diversification and make a broad impact on the world of healthcare. For startups, it brings clinical focus, credibility, and valuable networks to the table.

It’s time to embrace the role of fractional CMO.

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