Wharton@Work

August 2025 | 

Investing in Leadership: Why Hoag Doubled Down

Investing in Leadership: Why Hoag Doubled Down

As organizations navigate tighter budgets and shifting priorities, leadership development is under fire. According to the 2025 LEADx Leadership Development Benchmark Report, budgets plunged by 70 percent in 2024 and dropped an additional 15 percent in early 2025. In this environment, Hoag Memorial Hospital Presbyterian in California stands apart: rather than cutting support, it has deepened its commitment — giving its emerging leaders both resources and runway to grow.

“We think of leadership development as a foundational investment, not a discretionary expense,” says Andrew Guarni, Hoag’s executive vice president and chief financial officer. “When we talk about what it takes to deliver the best care to patients and stay ahead in a competitive health care environment, the quality of our leaders is non-negotiable.”

That belief has guided Hoag’s growing commitment to the Wharton’s Executive Development Program (EDP), a two-week immersion in cross-functional leadership for high-potential managers and directors. Over the past several years, Hoag has sent 25 rising leaders from across departments — including finance, analytics, nursing, environmental services, clinical lab, and pharmacy — through the program.

The goal: prepare the next generation of vice presidents and C-suite candidates by giving them the strategic perspective, confidence, and cross-functional mindset needed to lead beyond their technical areas.

Why Wharton? A Proven Return on Investment

Hoag didn’t land on Wharton by default. The organization has sent participants to multiple leadership programs, and the results from EDP stood out — both in participant feedback and on-the-ground impact.

“We decided Wharton’s EDP was the program,” Guarni says. “Everyone who came back raved about the content, the instructors, and the peer connections. And more importantly, we’ve seen measurable outcomes: people return with new energy and insight, and we see the difference in how they run meetings, solve problems, and think about the business.”

One early participant in the program, for example, started out in finance and analytics — and now serves as executive director of Hoag’s digestive health program. The first individual Hoag ever sent is now its chief human resources officer.

“It’s not just a nice line on a résumé,” says Guarni. “This is about real preparation for executive leadership. Wharton gives them the language, tools, and confidence to step into those roles.”

A Culture of Growth at Every Level

EDP is just one component of Hoag’s broader talent strategy, which emphasizes internal mobility and workforce development. Philanthropy has played a supporting role: Hoag has secured funding that offers every newly hired nurse a scholarship to complete a Bachelor of Science in Nursing. Additional gifts allow non-clinical employees to receive funding to pursue a degree, certificate, or other professional development aligned with their career goals.

“We believe in growing from within,” Guarni says. “It’s how we sustain our culture, keep institutional knowledge, and build leaders who already understand what makes Hoag unique.”

That culture is strong enough that many employees stay for decades. At a recent employee awards banquet, Hoag recognized four 45-year veterans and more than 10 employees with 40 years of service. “It really is like a family,” Guarni adds.

Making Leadership Visible — and Aspirational

Sending high-potential leaders to Wharton sends a message that goes far beyond those selected. It signals that leadership is valued, that development is supported, and that career progression is possible from any department.

“If you work in environmental services and you see your leader went to Wharton, that means something,” Guarni says. “People think: ‘I want to be that person someday. I want to get picked. I want to grow.’”

And at Hoag, being picked doesn’t depend on where you started. “We don’t just send the person next in line,” Guarni explains. “We look across the board — people who’ve been here a few years, who’ve shown they have the potential. That could be in pharmacy, in the lab, in analytics, in facilities. The path to leadership is open to everyone.”

Preparing for Growth Through People

That internal focus is particularly critical now, as Hoag prepares to open two new hospitals in Irvine, requiring as many as 900 new hires. Half of those roles, Guarni predicts, will be filled by current Hoag employees.

“The only way to bring our culture to the new hospitals is to move people who live and breathe it into leadership roles there,” he says. “And many of the people stepping up are the ones who’ve been through EDP. They’re ready.”

It’s a strategy that, so far, is delivering returns far beyond the tuition fees.

“This program pays tenfold,” Guarni says. “It helps us retain talent, drive performance, and show people that we’re serious about their future. And in the end, that’s what makes the organization better — for our people and our patients.”