Strategy Consulting: Industry Landscape
According to the American Hospital Association, labor cost increases are responsible for 35 percent of the overall growth in hospital costs. This is anticipated to increase further due to continued workforce shortages.
Every hospital executive is seeking ways to control costs while maintaining or improving the quality of care provided to patients.
Current practices affecting hospitals workforce costs include:
- - Decentralized staffing unit by unit with no system or process to share resources across units
- - No transparency on unit workforce productivity
- - Reactive planning towards staff shortage
- - Different systems scheduling FT, PT, and contingent resources resulting in increased administrative hours
- - Limited use of contingent resources leading to heavy reliance on OT
