Five Ways to Cut Staffing Costs without Compromising Patient Care Quality
The pandemic placed an unprecedented strain on the healthcare system. Healthcare organizations are already struggling to generate revenues as many depend on investment and non-operating income to stay afloat.
To establish financial stability, hospitals need to develop ways to reduce their operating costs quickly. Cutting labor costs is challenging to achieve and sustain. However, managers must implement it as it represents one of the most significant expenses in hospital operations. Here are measures to consider to reduce staffing costs without compromising the quality of care provided to patients.
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Increase competent and skilled hires
Companies invest resources of time and money to hire and employ new employees. Due to the expense and time involved in undertaking this process, organizations prefer partnering with staffing agencies to meet their workforce needs. For example, hospital administrators avail of the expertise of a specialist locum tenens recruiter like www.mascmedical.com to fill their requirements. The staffing specialist can quickly provide a list of eligible candidates for the job. As a result, it saves the organization time and money in the long term.
Reduce turnover rates
Once you have the right people to fill the positions, the next step is to ensure that you maintain them. Managers must identify and examine the factors that could be leading to fatigue and stress among their workers. Then, they must take the necessary measures to reduce burnout among the healthcare team, including doctors, nurses, and other allied healthcare professionals. A poorly constructed organizational culture, chaotic environment, and lack of work-life balance might lead healthcare professionals to quit their jobs. By creating a healthy and positive environment, your workforce will be more engaged and feel the administration’s support. Additionally, you can retain a happy workforce by offering flexible work schedules and supporting career development through various training programs and initiatives.
Minimize overtime
With the ever-increasing demand for healthcare, it is impossible to eliminate overtime in hospitals. However, healthcare organizations can minimize mandatory overtime with the right staffing partner that can supplement part-time employees. Additionally, they can implement a more efficient and organized scheduling system.
Evaluate your existing management structure
Cutting management positions shows frontliners that managers are not exempt from reducing labor costs. It is recommended to partner with a seasoned consultant to identify non-essential management positions and find ways to eliminate the padded hierarchy in the healthcare setting.
Consider skill-mix changes
Skill-mix changes entail delegating work to the lowest cost job positions in the department when appropriate. For instance, patient care aides have sufficient knowledge and training in assuming a few nurse responsibilities, while pharmacy technicians can take up a few pharmacist duties.
Final thoughts
Do not hesitate to initiate labor cost savings initiatives to ensure profitability and quality of care for your patients. There are still many unexplored options to reduce costs without cutting essential personnel. Start your cost-cutting measures early to avoid drastic reductions that can negatively impact the performance and overall operations of your healthcare facility.
