Workforce Management Wellness Series - Part 2: The ROI Of A Satisfied Health Care Workforce

This white paper outlines how investing in workforce management software can help a healthcare facility attract and maintain a skilled and satisfied workforce -- contributing to lower costs, increased revenue, and enhanced patient care in the long run.

The worst recession in a quarter-century. The most extensive changes in federal healthcare funding and regulation in 45 years. A looming mass exodus of nurses reaching retirement age. Significant enrollment increases in Medicaid and other programs for low-income populations: These and other factors are wreaking havoc with the nearly $3T health industry. Together, they represent a prescription for a disastrous bottom line.

But there is a cure. Many hospitals are shoring up the bottom line through labor cost savings achieved by automated workforce management solutions. These tools promote effective use and retention of existing resources and introduce staff-initiated cross-facility staff sharing as a way to boost job satisfaction and reduce high costs of premium-pay contract workers. These same workforce management solutions are also helping the bottom line by improving productivity and reducing time spent on "administrivia."

Though the median profit margin of US hospitals fell to zero percent during the third quarter of 2008, that figure rebounded to an average of 5% nationwide during 2010. Yet hospitals still have legitimate cause for worry, given the hurdles facing them today.

According to the US Census Bureau, our population will increase from 310 million (2010) to 439 million in 2050, and individuals age 65 years+, which are the fastest growing segment of the population, will more than double.

The rising demand for healthcare from an aging population will be made worse by healthcare reform initiatives that give more people of all ages increased access to services. In 2010 nearly nine in 10 hospitals reported an increase in care for which they received no payment. That trend will likely continue as more individuals enroll in programs that traditionally underpay hospitals, such as Medicaid and the Children's Health Insurance Program.

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