The financial impacts of COVID-19 are unprecedented, crippling the operations of most healthcare organizations and leaving leaders to answer serious questions about strategies for stabilization. One of the quickest, most effective solutions is through workforce optimization. Improving performance by enhancing productivity and implementing processes to control labor costs will help hospitals and health systems to rebound in a systematic way that not only meets patient demand but ensures the right resources are in place to provide the best care.
With personnel expense making up more than half of the total operating cost of most hospitals and health systems, it essential to understand how many FTEs your organization truly needs to run efficiently. A Full-Time Equivalent, or FTE, is the sum of all worked or paid hours divided by the total hours in a pay period. For most organizations, that’s 80 hours per pay period or 2080 hours per year.
With the stay-at-home orders beginning to be lifted and life starting to normalize once again, there are many things healthcare leaders need to be cognizant of as the industry enters the recovery phase of this pandemic. Hospital and health system executives need to take stock of what has occurred, identify the impacts, both financially and operationally, and take the necessary steps NOW to prepare for what comes next. Here are a couple of key elements to consider: What waivers and operating flexibilities has your organization taken advantage of over recent months? Though it remains unclear if/when any of the regulatory changes made to create access and ease the delivery of care during this time will expire, plans must be developed to account for all scenarios.