QThe Cost of Healthcare Workforce

Discussion in 'Hospitals and Healthcare Facilities - General Disc' started by LindaD@04, Mar 3, 2018 at 1:52 PM.

Tags: Add Tags
  1. LindaD@04

    LindaD@04 Guest

    Across the world, the typical hospital charges differ depending on the service received, and the cost can be higher or lower in some areas. The cost of hospital stays also differs with those in the same region. According to Governing (2018), the following states were found to have the top collective standings, signifying the highest medical costs: California, New Jersey, Nevada, Florida, and Pennsylvania.

    Recognize Labor Cost Drivers

    The labor cost in hospitals is mainly due to the shortages of healthcare workers, the decrease supply amount, and the demand for skilled nursing care. The increased speed of medical advancements is one of the contributing factors. The rate of patients requiring oncology treatment for cancer has drastically increased and requires more healthcare workers and services. Obesity has become a major issue with many patients, and that brings on health problems that require an increase in services for healthcare. More healthcare workers are needed to develop medical health improvements that may prevent the development of obesity.

    Many aging doctors are deciding to retire, and that is a concerning factor regarding supply. The majority of the young doctors replacing them are opting to part-timers, or provide services in a specialty where being on-call is less of an option. This new type of physician will have fewer patients and place a greater premium on lifestyle factors, so that would decrease the amount of supply (IMNCPF, 2009).

    Jobs for aides in a hospital and home health are at an all-time high. However, the amount of education and training required for these positions are minimal, and graduation occurs quickly. The aid is not receiving all the necessary education and training because they are needed for the growing demands on the health care system. Without the proper education and training results in an employee turnover which can be financially costly.

    Industry Solutions

    With the uncertainty of the economy many doctors who may have considered retirement or now deciding to continue working past their presumed age of retirement. Income is not the only factor to continue working, but some enjoy their work. These seasoned doctors are adjusted to being on call and content with their jobs, and dedication to their practices. Dedicated workers are more constructive and motivated to the get the job done.

    Nursing shortages and turnovers lead to expensive overhead for hospitals. Certified nursing assistants are now placed in a position where they are performing Registered Nursing duties and are not properly trained. This places the patient lives in danger and could result in lawsuits. Policies must be changed to assure CNA’s are educated on the duties and responsibilities they are performing.

    Predictions, Changes, and Solutions

    The future of any job is the advancement of technology. It cautiously grows, and there will always be new and exciting solutions (Thimbleby, 2013). Intelligent aid in decision making and surgeries performed by robots have been created to improve diagnoses in patients. With the continued implementation of advanced technology, labor costs within hospitals will drastically decrease. Technology is accelerating, improving and are smaller in size.


    References

    Governing (2018). Average hospital cost by state. Retrieved from http://www.governing.com/gov-data/health/average-medical-hospital-costs-by-state-map.html

    Institute of Medicine (US) National Cancer Policy Forum. Ensuring Quality Cancer Care through the Oncology Workforce: Sustaining Care in the 21st Century: Workshop Summary. Washington (DC): National Academies Press (US); 2009. Supply and Demand in the Health Care Workforce. Available from: https://www.ncbi.nlm.nih.gov/books/NBK215247/

    Thimbleby, H. (2013). Technology and the Future of Healthcare. Journal of Public Health Research, 2(3), e28. http://doi.org/10.4081/jphr.2013.e28. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4147743/
     

  2. anonymous

    anonymous Guest

    well done! Thank you for that well thought out and cogent article. Feedback: I’m guessing you are a CNAwho is furthering your education to enable you to play a more meaningful role and earn more money. You wrote a thoughtful paper. You might add the costs of medicines and their impact on healthcare. On the plus side these medicines are exceptionally cost effective in most cases as they prevent further spending downstream. For example, the cost of medically treating diabetes for decades is much less expensive than a few years of dialysis or a kidney transplant. Not to mention the QOL benefits for patients. On the downside, medicines’ cost as a portion of overall healthcare dollars spent is rapidly growing. Please share more of your work.
     
  3. LindaG

    LindaG Guest

    Managing a healthcare organization is no easy task. There are many moving targets. Staying current with best practices, increasing patient satisfaction, improving patient outcomes, and recruiting and retaining a talented workforce are just a few of the top priorities managers must face. LaPointe (2018) suggests a strategy that managers can use is to invest in healthcare workforce management systems. Newton, as cited in LaPointe (2018,) states labor is the largest driver of operational expenses, accounting for up to 60 percent of costs. Of that 60 percent, nurses represent the majority of staff.

    So how can executives manage this significant cost? Newton believes the answer lies in healthcare workforce management. Rouse, Brunskill and Kakade (2019) define workforce management (WFM) as “an integrated set of processes that a company uses to optimize the productivity of its employees “ (para 1). WFM is typically an integrated software system that fully integrates staffing, labor forecasting, scheduling, time and attendance, overtime, and registry. Many hospitals currently have isolated and unconnected systems to handle separate aspects. Newton, (as cited in LaPointe, 2018) states many organizations currently use systems that are 10-20 years old, and were installed for compliance reasons, not as tools to manage the workforce.

    LaPointe (2018) cites organizations overspend in what seems like minor areas such as registry and incremental overtime. These functions can greatly contribute to increased labor costs. Newton states Chief Financial Officers (CFO’s), Chief Human Resource Officers (CHRO’s), Chief Nursing Officers (CNO’s) and Chief Operating Officers (COO’s) must all be invested in workforce optimization by collectively owning the software to optimize staffing models and reduce costs. The process should be transparent so managers can identify where excessive costs are occurring.

    A key opportunity for savings is in the area of registry staff. Many managers do not track productivity of registry staff in the same way they do for permanent staff. Using an integrated WFM system can allow managers to analyze productivity of all workers. According to Rouse, et al., (2019), a key benefit to using a WFM system is improved employee productivity and better customer service. Other benefits include better insight into employee engagement, attendance and productivity. Managers can then personalize training and coaching to maximize staff performance. Last, improved employee morale is an outcome due to improved transparency and communication. Rouse, et al., (2019), state WFM software has seen significant growth. The market for this type of software is projected to reach $9 billion by 2022. Key companies include IBM, Oracle, ADP, SAP, Workday, and Workforce.

    Cerner Corporation (2017)cites how the use of their WFM system allowed nurse managers at Children’s Hospital Los Angeles (CHLA) to optimize nurse staffing by reducing overtime hours. The WFM tool used by CHLA was able to capture patient acuity from the electronic health record (EHR) and allow managers to alter staffing models in real time, and to match nurses and patients for appropriate assignments. According to Cerner Corporation (2017), the system allowed CHLA to improve nurse staffing and reduce overtime by eight and a half percent, saving the organization more than 2,000 skilled nursing hours in a six-month time frame.

    Cerner Corporation, Inc. (2017). Three examples of workforce management at health care organizations. Retrieved from

    3 Examples of Workforce Management at Health Care Organizations

    LaPointe, J. (2018). Gaining visibility into healthcare workforce management cuts costs. Revcycle.com. Retrieved from

    Gaining Visibility into Healthcare Workforce Management Cuts Costs

    Rouse, M., Brunskill, V., & Kakade, S. (2019). A guide to workforce management solutions and software. TechTarget.com. Retrieved from

    What is Workforce Management? - Definition from WhatIs.com