Health system executives are actively seeking strategies and solutions that help improve clinical, financial and operational outcomes. On average, the workforce accounts for nearly 55 percent of hospital operating costs, and making workforce optimization the center of an operational strategy is critical to hospitals’ long-term sustainability.
So often, healthcare executives are making critical decisions about the future of their organization while faced with dozens of unknown variables. But, there’s one area where health systems can invest time and resources that will help create a stable foundation for the organization to withstand the changes ahead: their workforce. While the future of healthcare legislation remains uncertain, there will always be a need for a highly engaged, skilled healthcare workforce that can deliver high-quality, cost-effective patient care.
Right Data, Right People, Right Time
Most health systems already have large amounts of data regarding their staff and their patients. However, the inability to access, analyze and interpret that data in a timely manner for effective decision support undermines its usefulness. Data and decisions that come after the shift are too late; instead data-driven decisions before and during each shift enable labor cost savings by preventing overtime, improving productivity and minimizing premium labor spend.
Here are three questions to consider to turn workforce data into better outcomes.
1 – What is the right data? It’s critical for health systems to have a clear picture of how the needs of the patients, the skills and availability of the staff, and the unique dynamics of each unit all have an impact on staffing optimization. Integrating key data about each of these areas plays a critical role in making better staffing decisions.
2 – Who needs that data? It’s crucial to understand who needs the data and how that data can be delivered so it’s easy to access and interpret. Look at taking advantage of mobile technology that proactively puts workforce data in the hands of staff and managers when they need it.
3 – When do they need the data? Data needs to be available at the right time so that better staffing decisions can be made proactively. That means focusing on having the right data available to the right people before, during and after each shift.
Turn Workforce Data into Better Outcomes
Healthcare is a fast-paced, ever-changing environment. Data that’s readily available and points to informed decisions can help executives, managers and staff make better staffing decisions that:
- Boost productivity with visibility into staffing adjustments that can be made before and during each shift instead of retrospectively analyzing productivity metrics after the shift. One Mississippi medical system saved $2.5M in just eight months by empowering their unit managers with productivity metrics during the shift so that impactful adjustments could be made[1].
- Manage overtime by eliminating preventable overtime before it happens. Even health systems that have low overtime rates can make measurable improvements. A Georgia health system dropped their overtime rate from 3% to 1.8%, saving them $500,000 annually[2].
- Improve the utilization of internal staff across the organization, so that premium labor costs are minimized. A health system in Oklahoma is saving $2M annually by using internal resource pool staff instead of external agency nurses[3].
- Focus on needs-based staffing to achieve optimal staffing levels intra-shift, using real-time acuity data and predictive analytics of admissions/discharges/transfers. Consider whether your organization can move toward acuity-based budgeting to more accurately develop staffing plans based on actual patient needs.
For more specifics about these case studies and strategies, check out the webinar “Four Key Metrics for Labor Cost Containment.”
Key Takeaways
A successful transformation of healthcare from a volumes- to a value-based industry demands an optimized, engaged workforce. Pull the lever that has the biggest impact on the organization’s profit and loss statement by making workforce management a business imperative. With processes streamlined and data readily available to drive an information-rich, decision-making organization, workforce optimization solutions power the development of an agile workforce that meets changing needs within the dynamic healthcare environment. It’s a strategy that can deliver a solid fiscal foundation in spite of the many unknowns challenging today’s healthcare executives.
[1] Anderson Regional Medical Center Case Study. http://www.apihealthcare.com/themes/ridge/files/Anderson-Regional-Case-Study.pdf
[2] West Georgia Health Case Study. http://www.apihealthcare.com/themes/ridge/files/Anderson-Regional-Case-Study.pdf
[3] Hillcrest HealthCare System Case Study. http://www.apihealthcare.com/themes/ridge/files/Anderson-Regional-Case-Study.pdf
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