In the past five months, we as healthcare professionals have all learned a lot about the human spirit's strength and have been humbled by our ability as an industry to persevere during this crisis. We have also come to realize that COVID-19 is here to stay. This devastating virus is not merely a passing health anomaly that we are working to overcome, but instead a permanent change to which we must adapt.
Did you know that the premium dollars scattered across your hospital are often excluded from any labor spend analyses? Did you know that these dollars can drive up an organization’s Compensation Ratio and lead to staff turnover? High-cost labor dollars can range from incremental overtime to interim leadership. Watch now as ALTIUS’ CEO, Stephanie Dorwart, and COO, RandiLynn Lukac discuss strategies for decreasing premium dollars and provide recommendations for improvement. .
We are all familiar with the term “death by meeting.” It refers to the seemingly endless cycle of leaders having meetings to prepare for other meetings during which strategies are discussed that require more meetings to implement! It’s exhausting to say, let alone live. Instead of having a positive impact on operations, it has quite the opposite effect.
According to a recent article, the turnover rate in the healthcare industry has increased by 5% across all job categories over the last decade. With the impacts of the COVID-19 pandemic on the operations of hospitals and health systems, it is safe to assume that these rates will continue to rise. Considering how time-consuming and costly recruitment efforts can be, especially given the ever-shrinking candidate pool that presently exists, it is critical that healthcare leaders appropriately manage the employees that they do have.
What does "Best Practice" mean in the healthcare environment? Just as in any other field, "Best Practice" is the commitment to using all the knowledge, processes, data, and technology at one's disposal to ensure success. However, let's take that one step further and note that this success must be realized in the most efficient manner possible to make a difference to your organization's bottom line. Controlling costs through the proper utilization of resources and minimization of waste are ways that hospitals and health systems are achieving "Best Practice" status.
The months leading up to a fiscal year turn can be stressful enough. In light of the current climate, healthcare organizations are faced with even more significant challenges. Any preliminary volume and staffing projections previously in place are now being cast aside and re-evaluated based on new strategies to restore financial stability.
The U.S. Healthcare System is currently wasting an estimated $765 Billion (23% of what is spent) per year due to inefficient operations! Surprisingly, the majority of this waste is not being generated by pricing failures and supply chain issues, but through workflow and labor management deficiencies.
Any healthcare consultant that focuses on productivity will tell you the mixed reactions received when sharing that you have been engaged to improve performance. Why are we, as an industry, conditioned to fear a word that brings value, accountability, and increased efficiencies to hospitals and health systems? Historically speaking, productivity was synonymously linked to a reduction in force or layoff. It is no wonder that just the mention of it could send panic across an organization, especially if previous experiences have left staff feeling lost, defeated, and defensive.
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 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.