At ATLIUS, we stress the importance of having the right person, in the right place, performing the right task, for the right clinical outcome. This approach is then ultimately supported by having the right productivity target in place. The question is, how do you determine each departmental target so that it results in the highest level of efficiency and the best overall outcomes? While there are various ways to establish productivity targets, we have seen the strongest performers follow our primary approach to target setting: varying targets by department.
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 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.
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.