January 23, 2024
Over the last few years, we have seen a loss of approximately 100,000 hospital workers, leading to significant shortages in numerous areas. The impact has been felt across the industry, including:
- 52% of hospital workers feeling ‘burned out’
- 23% plan on leaving the field1
- Postponement or cancellation of numerous elective surgeries.
- A surge in contract and agency staffing, with 23.4% of nursing hours filled by contract nurses.
Contract Staff Impacting Operations
Due to the labor shortage, employee costs have increased dramatically. At over half of all hospital costs, increases in labor have a profound effect on the overall cost of care.
The offshoot of the labor shortage has been increases in employee wages, overtime, and the rise of contract nurses. Over 23% of nursing hours were filled by contract nurses in early 2022 representing 38.6% of nursing costs (Figure 1). As a result, the labor cost per patient increased by 19% and Kaufman Hall’s Operating Margin Index has shownd that over half of hospitals ended 2022 operating at a financial loss.
Take Control of Your Labor Costs
Ensuring financial stability requires managing the costs of care. At the forefront is an efficient and effective workforce. Labor productivity solutions, such as Trisus® Labor Productivity, give you control of your workforce and the resultant costs. Integrating payroll, timecards, hospital EMR/ADT events, and general ledger costs in one location provides a basis for reporting, analysis, and managing your labor for short and long-term benefit. Click here if you are looking to take control of your most costly asset.
1. Chris Jackson, “American Healthcare Workers Preserving, but Remain Stressed.” Isos, February 22, 2022, American Healthcare Workers Persevering, but Remain Stressed | Ipsos