Because effective leadership is critical to organizational success, frontrunner organizations cultivate leaders for bench depth and pipeline development. The many challenges in healthcare today create a special need for great leadership. This paper reviews the leadership competencies needed by physician-leaders and current experience with developing physician-leaders in healthcare institution-sponsored programs. On the basis of this review, six key leadership competency domains are proposed: 1. technical skills and knowledge (regarding operational, financial, and information systems, human resources, and strategic planning), 2. industry knowledge (e.g., regarding clinical processes, regulation, and healthcare trends), 3. problem-solving skills, 4. emotional intelligence, 5. communication, and 6. a commitment to lifelong learning. Review of current experience indicates that, in addition to leadership training through degree and certificate-granting programs (e.g., by universities and/or official medical societies), healthcare institutions themselves are developing intramural programs to cultivate physician-leaders. Greater attention is needed to assessing the impact and effectiveness of such programs in developing leaders and benefiting organizational outcomes.