Given the level of rising expenditures in the health care sector, and the fact that more than half of those expenditures pertain to the sector's labor force, the inevitable innovation that has engulfed the health care sector must be carefully managed, communicated, and embraced. Change management is going to be increasingly important in this management, as well the selection of leaders as conditions evolve. This report contains human capital implications for chief human resources officers of health care companies, and gives some guidance as to how to adapt to the changing environment from technology, to venture capital entities, to new partnerships, to developing new leaders, to new service providers and payment systems.