Becker's Hospital Review

6 CFO Must-Reads: Impact Cost and Quality with Workforce Strategies

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Impact Cost and Quality with Workforce Strategies | 7 T ogether with API Healthcare, my company and I have taken a deep dive into the issue of nurse overtime. During our research, we found information about the impact of overtime that wasn't too surprising – overtime inflates labor costs. However, we also found information that was more startling – overtime can be a root cause of turnover, patient dissatisfaction, medical errors and nurse injuries. I was able to present these research findings during a recent webinar called "How Overtime May Be Harming Your Business and Patients." After hearing about the impact of overtime beyond the overtime costs, the webinar attendees asked some very salient questions. One question came up over and over: At what point is it less expensive to use overtime rather than recruit another FTE? The very first question that needs to be answered in order to address this issue is: Is the overtime being used as a short-term solution or a long-term strategy? Overtime can be a reasonable solution to a short-term staffing issue. For example, during short periods of high census, putting nurses into overtime can help ensure that patients get the care they require. However, pervasive and prevalent overtime for long periods of time is not only costly; it can also put patients and staff at increased risk. Consider the following research findings: • The risk for making an error more than doubles when nurses work 12.5+ consecutive hours. i • Nurses working shifts of 13+ are 2.57 times more likely to intend to leave their job in the next year than nurses who work 8-9 hours. ii • As nurses work more hours, patients are more likely to rank hospitals 6 out of 10 or below in HCAHPS. iii • Working in jobs with overtime schedules is associated with a 61% higher injury hazard rate compared to jobs without overtime. iv With those statistics in mind, it's easy to see that if overtime is being used as a long-term strategy, it's time to carefully evaluate if there's a need to hire more staff. For more information about the potential costs and risks associated with overtime, I invite you to take a look at a white paper that addresses this topic in more detail. A simple cost/benefit analysis of overtime vs. hiring staff By Pat Ball " " However, pervasive and prevalent overtime for long periods of time is not only costly; it can also put patients and staff at increased risk. i Rogers, Ann, et al. The Working Hours Of Hospital Staff Nurses And Patient Safety. Health Affairs, 23, no.4 (2004):202-212. ii Stimpfel, Amy, et al. The Longer The Shifts For Hospital Nurses, The Higher The Levels Of Burnout And Patient Dissatisfaction. Health Affairs, 31, no. 11 (2012): 2501-2509. iii Ibid. iv Occup Environ Med. "The Impact of overtime and long work hours on occupational injuries and illnesses: new evidence from the United States. 2005;62:588-597" Accessed July 10, 2014.

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