For hospitals, improving diversity is ‘good for business’

It doesn’t take a lot of prompting for Karen Ashley to make the case for hospitals to focus on improving diversity, equity and inclusion.

Hospitals that focus on improving diversity may find it's good for their business, particularly in recruiting and retention, says Karen Ashley, chief diversity, equity and inclusion officer for Providence.

Ashley is the chief diversity, equity and inclusion officer for Providence, which operates 51 hospitals and more than 1,000 clinics. She stresses the importance of developing a more diverse workforce to foster a better work environment. Ashley also says it’s essential to providing better patient care.

But Ashley tells Chief Healthcare Executive® that there’s another reason for hospitals to pay attention to diversity efforts. She says it’s a good business decision.

“We also know that as you bring people with different backgrounds and different perspectives around the solutions table, then you make better decisions, and you come to better, more efficient and economical and effective solutions to some of the challenges that all organizations, including Providence, face,” Ashley says.

“So the innovation, the creativity, is a plus,” she continues. “As we talk about DEI being good for business, it's good for retention, and to help support the level of engagement of our caregivers, when they're in a work environment where they can see themselves and where they are surrounded by people from all different walks of life.”

• Read more: How Providence aims to make gains in diversity sustainable

Some diversity efforts have gained more criticism in the past few years, with some states aiming to curb DEI efforts.

Alabama Gov. Kay Ivey signed legislation in March barring the use of state funds for DEI programs at higher education institutions. The law went into effect Oct. 1. Texas and Florida have passed laws barring DEI programs at colleges. Republican members of Congress have pushed legislation banning DEI offices in medical schools, a measure which has drawn heavy opposition from medical colleges.

Ashley finds those efforts disappointing, if unsurprising for a longtime leader in DEI efforts. She also finds it discouraging that some organizations have moved away from efforts to bolster diversity.

Providence remains focused on making the organization more diverse and inclusive. And she says the organization is going to reap the rewards.

“Kudos to the Providence organization that we are committed to staying the course,” Ashley says. “It has not derailed or distracted us whatsoever. As a matter of fact, I have shared with our board of directors, with our executive council, that at some point the companies who are scaling back will wake up one day and realize that they made a mistake, and we will be that much further ahead because we are staying in the course.”

Ashley says those diversity efforts make a difference in recruiting and retaining top staff.

“People who are out in the market are looking for companies who are committed to this work, and they have options,” Ashley says. “They have options. So for us to be able to say that we are staying the course and are committed to this work gives us a huge advantage, as we are in this war for talent. Yes, indeed. So I'm going to say diversity is good for business and Providence is right where Providence should be.”

Those considering jobs at Providence are asking questions about the system’s diversity efforts.

“In our interviews, we're being asked what we're doing around this work of diversity, equity and inclusion,” Ashley says. “On my LinkedIn account, I get questions from applicants asking me, what is the state of diversity at Providence, and what are some of the initiatives that you all have in place, and are you committed to this work?”

Other healthcare leaders have talked about diversity as a business priority.

Michael Dowling, president and CEO of Northwell Health, said in a 2023 interview with Chief Healthcare Executive® that diversity is “a major overall commitment of the organization.”

Northwell is based in New York, which offers more diversity than most areas, but Dowling said finding ways to improve will lead to a better health system.

“If you took advantage of the talent of all of the people from all the disparate backgrounds and all of the different ethnicities, people from all over the world that are here, and we optimize the talents from all of them, imagine how good we would be,” Dowling said.

Kim Drumgo, the first chief diversity officer of the Geisinger health system in Pennsylvania, also talked about the importance of viewing diversity as a business priority in a 2022 interview with Chief Healthcare Executive®.

Drumgo said her vision is that “every employee sees the business case for diversity in their job and what they do. That’s a critical element for success.”

Ashley also talks about diversity being embedded in the system’s goals.

“As we talk about our diversity, equity and inclusion here at Providence, we talk about it being grounded in our mission,” she says. “We talk about it being grounded in our values of compassion, dignity, justice, excellence and integrity.”

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