A longtime leader in healthcare improvement, we’re developing new ways to revolutionize the industry.
Workforce expenses make up nearly 60 percent of health system operating margins – equaling more than half of the $3.5 trillion spent on American healthcare. In today’s environment, where opportunities must be prioritized to proactively manage margins without compromising outcomes, healthcare leaders need a bold approach to optimizing workforce spend within the framework of maintaining or improving care delivery.
The challenge is that some organizations lack the diligence and discipline necessary to most effectively deploy their precious clinical resources. As leaders in these organizations focus more on providing high-quality care, managing efficiency and throughput, and preparing for shifts in reimbursement models, their day-to-day priorities may not be to optimize workforce expense.
However, there is a clear opportunity to leverage the healthcare workforce in a manner that ensures operational alignment to the organization’s strategic direction. Organizations can succeed in deploying a more efficient infrastructure by removing the complexity of workforce management, ingraining processes into daily routines and providing simple decision-making tools for leaders.
1. Leverage Business Intelligence
Leaders should have access to robust data, analytics and benchmarking capabilities to establish staffing levels that are attainable, safe and efficient. Advanced technology solutions and expertise are a critical component to building benchmarks and moving these successful efforts forward. For example, analytics should have the following benchmarking capabilities to enable leaders to staff volume efficiently.
They must be:
While data and analytics often provide a plethora of information, the right partner can help analyze the data to pinpoint, prioritize and implement opportunities. These steps reclaim waste in variable workforce expense to drive financial improvement. When efficiency and business intelligence combine, outcomes are positive for both the health system and the patient.
2. Set and Support Expectations
Establishing expectations is the crucial first step at the beginning of a workforce optimization journey to ensure colleagues throughout the organization understand the changes. For example, leaders typically appoint one manager to lead performance improvement among the workforce, which enhances results and reduces the need for coordination among multiple stakeholders. As part of organizational readiness, teams must understand that person’s role, the new roles supporting it and what any restructuring is set out to accomplish. Leaders must also effectively translate expectations to daily operations and monitor performance regularly, equipping their teams with resources that will allow them to succeed.
3. Establish Accountability
Anticipating and preparing for the barriers and setbacks that will occur is critical. Leaders can make training programs available to promote a culture that encourages communication and teamwork, and if managers do not consistently meet the expectations, leaders should activate accountability measures. One effective style of doing so is called management by exception. This style of management pulls in leaders only when situations deviate from the norm and require their attention, and otherwise empowers staff to make decisions and fulfill tasks themselves.
4. Ensure Sustainability
Underlying all of these principles should be a guiding philosophy of continuous improvement. Leaders understand that reimbursement pressures will always drive a need to identify better ways of operating, and should continually compare performance against others to drive improvement. A two-tiered approach to continuous improvement helps track progress:
Managing staffing to benefit the organization, individual staff and, most importantly, the patient is essential to effectively achieve the ideal workforce scenario.
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