Between a tightening labor market and an aging population, it may seem like there are not enough clinicians to go around. In addition, labor costs now account for 60% of an average hospital's total budget, highlighting the need to control labor expenses. But for many hospital administrators, a reduction in total labor costs can seem like an insurmountable feat. And with many hospitals lacking standardized labor cost data, many hospital administrators are unable to pinpoint the exact reasons why they are overspending.
When the COVID-19 pandemic hit, the cost of qualified clinicians rose by $24 billion for healthcare organizations. In addition, clinical labor costs increased by 8% per patient, leading to a 52% increase in overtime.
VISTA knows that health systems and medical organizations have cost containment in mind, and CFOs are facing the same challenges but within different environments. Here are just some of the challenges that CFO's of health systems are facing and how to combat them.
The COVID-19 pandemic upended the way the world works. Nowhere was this more in evidence than in the healthcare workplace, where essential workers were stretched to the limits of their endurance and recruiters faced obstacles like never before.
In today's climate, many hospitals and healthcare systems are understaffed. This reality, combined with the desire to offer excellent care, makes it difficult for them to effectively handle all the duties related to operation on their own. Balancing continuity of care with cost control requires a technology-based approach capable of handling immediate and long-term provider staffing needs.
Clinicians are necessary for successful healthcare delivery. The roles they play in quality patient care, disease management, patient satisfaction, and overall population health are central to hospitals, clinical operations, and society as a whole. However, when a healthcare system experiences a high turnover rate in its clinician pool, the related costs are astronomical. For example, investing in a new hire can demand upwards of one million dollars just for the first year.
The American Hospital Association (AHA) states that National Hospital Week allows communities to shine a light on US hospitals, the backing of US health care systems, and the selfless dedication of US healthcare workers. During the ongoing COVID-19 pandemic, it is incumbent upon members of American society to take the time to declare their appreciation for the inventive ways that such healthcare institutions and workers provided support to their communities. In many instances, hospital workers were the only comfort to the severely ill and isolated from loved ones.
As pressure to control costs mounts, a growing number of healthcare recruiters are discovering the value that locum tenens clinicians can bring to their organizations. Highly trained locum tenens clinicians deliver necessary post-surgical follow-up care that enables surgeons to continue to operate on patients. They also fill in on an as-needed basis when physicians are on leave, preventing gaps in care and revenue loss.
A comprehensive Workforce Optimization Review is one of the most potent cost-savings tools in a healthcare system's arsenal. When introduced as part of a proactive approach to recruiting, a workforce optimization review can help healthcare organizations overcome clinician burnout and financial roadblocks. But how can you use a review to optimize your staffing? And how can a review help you deploy short-term and long-term staffing strategies?
The nature of the work physicians do — helping people overcome illnesses, managing chronic conditions, and even saving lives — is perhaps the most significant source of job satisfaction among providers. But the role they play is a double-edged sword. Physicians must live with the psychological consequences of not being able to help people heal. A physician may witness one or more patients die during their shift, yet must return to work ready to provide the same high-quality care whether they are emotionally or mentally prepared to do so.
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About VISTA Staffing Solutions
At VISTA we’re dedicated to being our clients’ strategic workforce optimization partner. With our deep industry expertise and exclusive locums MSP technology, we help health systems, hospitals, practices, and government entities build and sustain effective workforce models that ensure patient access to care and organizational stability. Covering more than 60 specialties, we staff physicians, nurse practitioners, and physician assistants to help our clients preserve revenue and maintain profitability.