'Use less; lose less; and hire more': Hospital CEOs buck layoff, pay cut trends

With labor costs on the rise, many hospitals and health systems are making cuts.

Some are undergoing workforce reductions and layoffs while others cut pay. Hospitals are also bringing in international nurses or creating internal travel nursing pools to efficiently fill shifts at a fraction of the cost for contracted labor. Finally, artificial intelligence and automation is helping nurses and staff be more productive in record time.

A solution you don't hear often is "hire more." But that's exactly what Kenneth Rose, president and CEO of Texas Health Hospital Mansfield, is doing. He said the hospital is laser-focused on its nursing strategy as one of the high-cost areas. His mantra?

"Use less; lose less; and hire more."

"The work of using less is being driven by more creative staffing models that are based on a team approach to care," he said. "Losing less means that we are focused on our culture, the effectiveness of our leaders and staying competitive with pay. These strategies are intended to reduce our clinical turnover. Lastly, hiring more is focused on unique hiring such as GNs, international nurses and entry-level nurses who will need to be groomed."

Nurse and worker pay to keep up with inflation has been a catalyst driving up costs. But Jandel Allen-Davis, MD, president and CEO of Craig Hospital in Englewood, Colo., says it's critical to keep up with the competition.

"I believe that our team members are our most important asset. We think it is important to invest in their growth, development and salaries, each of which creates a favorable work environment, one in which they are able to provide the high-quality neuro-rehabilitative care that distinguishes Craig Hospital," Dr. Davis said. "We plan to continue providing annual salary increases, and we stay abreast of market survey data in order to remain competitive in the current healthcare environment both locally and nationally."

Dr. Davis said her team is constantly scrutinizing vacant positions for opportunities to consolidate and optimize performance without sacrificing quality.

"It's a tough balancing act and yet it is critical to making sure that we are here to serve future generations of people who need our highly specialized care…and that this care is delivered by the best in the field. Paying people fairly is one part of that equation," she said.

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars