With the healthcare workforce under duress, health systems are focused on retention by investing in their people and thinking about how to provide services with reduced staff if necessary.
During a May 19 webinar hosted by Becker's Hospital Review and sponsored by The Chartis Group, experts discussed changes in the healthcare employment market and how health systems are adapting. Panelists were:
- Mike Browning, CFO, OhioHealth in Columbus
- Wayne Frangesch, Chief Human Resources Officer, HonorHealth in Phoenix
- Pam Damsky, Director and Performance Practice Leader, The Chartis Group
- Rob Gamble, Director and Performance Practice Leader, The Chartis Group
Four takeaways:
1. Health systems face a challenging workforce landscape, with existing workforce trends accelerated by the COVID-19 pandemic. "Workforce has been a challenge for providers since before the pandemic," Ms. Damsky said, noting that healthcare turnover rates have steadily increased from 15% in 2016 to 19% in 2019 - and that the pandemic has driven many healthcare workers to consider leaving the field after spending extended shifts working in high-stress environments with consistent exposure to traumatic circumstances. Health systems face challenges reopening the same number of beds due to lack of staff. "There have been estimates that the costs for burnout-related nursing turnover are $14 billion," Ms. Damsky said.
2. Health systems will spend the next several years trying to get ahead of labor shortfalls. Health system leaders' concerns center on managing staffing levels and employee engagement. Putting in workforce strategies today to invest in people's physical, mental and financial wellbeing can head off future problems. "If we have the right strategies today and over the next three years, our challenges will not be as severe," Mr. Browning said.
This employment cycle is not expected to change in the near term, given population growth in markets like Phoenix. HonorHealth is considering process improvements, automation, predictive staffing analyses and leveraging telehealth to maintain services. A network float pool that staffs different sites based on need has been an effective tool, minimizing the costly use of agencies. Investing in the pipeline of future workers is another element. "We're always looking at growth, but we have to understand people drive that growth," Mr. Frangesch said.
3. The increase in remote work is changing the competitive landscape. As many nonclinical positions have shifted to remote work, competition for talent has become national. This cuts both ways. Health systems now can seek talent nationally, but also find that their staff are being recruited nationally. Employers need to "develop and train leaders to manage a remote workforce," Mr. Frangesch said, since leaders are a proven factor in retention.
4. Investing in the workforce does not require sacrificing fiscal health. Health systems continually balance their mission with financial viability. "Margin is important, but the values in the organization's mission are more important," Mr. Browning said. OhioHealth is reorienting to spend on employees as an investment, similar to how capital spending is treated. To make this investment, OhioHealth is reallocating its budget. "We're not doing it at the expense of the margin," Mr. Browning said. "We're taking some of the nonessential expenses out of the system and putting it into people."
To view a recording of the webinar, click here. To read more on this topic, click here.