Becker's Hospital Review

23 CFO / FINANCE ProMedica lays off unspecified number of employees in wake of financial challenges By Andrew Cass T oledo, Ohio-based ProMedica is laying off an unspecified number of nonclinical employees, the Toledo Blade reported July 5. ProMedica spokesperson Tausha Moore confirmed the layoffs in an emailed statement to Becker's. She said layoffs represent less than 1 percent of the health system's workforce and are "primarily related to pilots and processes outside of our core business as well as certain corporate services." ProMedica employs about 44,000 people nationwide, according to a financial filing cited by the Blade. "ProMedica regularly evaluates ways to operate more effectively and efficiently while continuing to deliver high-quality, compassionate care," Ms. Moore said in the statement. "As we move forward, we remain focused on taking action to build stability and sustainability throughout the organization. Accordingly, as part of our efforts to position ProMedica for long-term success and manage through current economic challenges caused by the pandemic, we have made the difficult decision to eliminate some nonclinical positions." The health system reported a $126 million first-quarter operating loss, which followed significant losses in 2021, the Blade reported. ProMedica ousted its CFO and several other senior leaders in May. It hired an interim CFO from Texas with experience in healthcare restructuring and crisis management. "We empathize with the affected employees and are committed to assisting them through their transition," Ms. Moore said in her statement to Becker's. "ProMedica's human resources department is working closely with affected employees to provide support during this process." n The cost of nurse turnover by the numbers By Marissa Plescia T he COVID-19 pandemic wore down registered nurses, causing many to leave and retire early, leaving vacant spots in hospitals. Due to this, hospitals have been paying astronomical prices in turnover costs, according to the "2021 NSI National Health Care Retention & RN Staffing Report." In this report, 226 facilities from 37 states participated and were asked to report data from January to December 2020. e survey covers 501,764 healthcare workers and 144,300 registered nurses. Here are 10 important facts about the cost of nurse turnover, by the numbers: 1. Since 2016, the average hospital turned over about 90 percent of its workforce and 83 percent of its RN staff. 2. In 2020, the turnover rate for staff RNs was at 18.7 percent, a 2.8 percentage point increase from 2019. 3. e average cost of turnover for a bedside RN is $40,038 and ranges from $28,400 to $51,700, causing a hospital to lose $3.6 million to $6.5 million per year. Each percent change in RN turnover costs or saves the average hospital $270,800 per year. 4. Hospitals in the Southeast had the highest RN turnover rate of 24.9 percent, a 7.2 percentage point increase from 2019. e Northeast had the lowest turnover rate of 13.2 percent, a 0.6 percentage point decrease from 2019. 5. Hospitals with 200 to 349 beds had the highest RN turnover rate of 22.9 percent, a 5.8 percentage point increase from 2019. Hospitals with more than 500 beds had the lowest turnover rate of 17.4 percent, a 2.1 percentage point increase from 2019. 6. RN turnover depends on specialty. Step-down had a turnover rate of 24.4 percent in 2020, compared to 18.5 percent in 2019. Behavior health had a turnover rate of 22.7 percent in 2020, compared to 20.6 percent in 2019. Emergency had a turnover rate of 20 percent in 2020, compared to 18.5 percent in 2019. 7. It also depends on tenure. About 24 percent of RN turnover are those in their first year. ose with more than five years had a higher level of commitment, accounting for about 14 percent of turnover. 8. e top three reasons for RNs resigning were relocation and career advancement tied for first and retirement as the third reason. is is the first time retirement has been in the top three. 9. e RN vacancy rate is almost a full point higher than 2020 at 9.9 percent, and 62 percent of hospitals have an RN vacancy rate of higher than 7.5 percent, brought on by the economy and COVID-19. 10. Hospitals are turning to travel nurses, who receive an average hourly rate of $120 an hour. For every 20 travel RNs eliminated, the average hospital can save $3,083,600. According to Sumner College, travel nurses made on average $1,673 per week pre-pandemic. Now, they can get more than $4,000 per week in some cases. n

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