How to avoid some of the pitfalls associated with labor costs
January 10, 2017
Alan Bateman, Healthcare Industry Strategy Director
Is your organization experiencing challenges such as rising labor cost, a competitive hiring market and a shifting landscape as Millennials enter the workforce? Healthcare organizations are realizing that they need to move away from outdated workforce management systems toward a more modern and patient-centered approach.
Labor is one of the largest costs for a healthcare organization, which is why proper management of labor is key to survival. Rising labor costs can have consequences in other areas of the organization because it is the single most important factor driving up the cost of hospital care. Also, hiring and retaining clinical staff is becoming competitive. Millennials will eventually make up the majority of the workforce so organizations have to adapt their technology to accommodate Millennials’ needs.
In developing a modern workforce management system, it’s important to keep in mind the factors that contribute to overall labor costs. By following these steps, your organization can strategically lower labor costs while focusing on patients.
- Make sure technology is deployed correctly in order to maximize ROI.
- Enable data-driven analytic functionality that forecasts direct care needs and allows nurses to work at their skill level.
- Create transparency in scheduling to allow staff to choose preferred shifts and match skills to patient acuity.
- Apply real-time business intelligence, integrated from multiple systems, to make decisions.
- Keep your eye on the bottom line in order to save costs.
Of the overall growth in spending on hospital care between 2006 and 2010, 29% is due to rising demand for care. This makes it imperative for healthcare organizations to deploy their workforce management system effectively around the needs of the patient. Infor Healthcare provides your organization with a complete workforce management system that is analytics-based to help improve decision making and transparency into patient needs.
Take the initiative and move toward a modern workforce management strategy. Learn more by downloading our pitfalls paper.
- North America