Issue link: https://beckershealthcare.uberflip.com/i/645291
Impact Cost and Quality with Workforce Strategies | 9 I n the landscape of healthcare today, it's not enough to simply find the balance between finances and care quality. Instead, forward-thinking healthcare organizations are embracing strategies that simultaneously improve patient outcomes and the bottom line. Often seen as being responsible for two separate aspects of the health system, now a collaborative relationship between CFOs and CNOs is at the core of a hospital's success. Staffing strategies are one key area that requires healthcare executives to reach across the table to develop initiatives that both control costs and maintain high-quality care. Since labor accounts for 54.2 percent of a hospital's operating costs 1 , it makes sense that savvy healthcare providers optimize their labor resources and their workers' abilities. As the healthcare industry shifts to accountable care, hospital decision-makers will need to meet patient care requirements in the most cost-effective way possible. Staffing and patient care needs are deeply entwined with a hospital's bottom line and accurate, effective nurse staffing and acuity strategies can help health systems reach their patient care and financial goals. By pairing nurse talents, skills and experience with specific patient needs through acuity- based staffing, hospitals are able to maintain low readmission rates, deliver exceptional patient care and remain financially successful. The Aspects of a Strong CFO to CNO Connection Labor Costs Can Determine Whether You Survive or Thrive The healthcare industry is unique. Workforce solutions and staffing strategies that work for other industries often fall short when it comes to healthcare. Benefits administration and effective scheduling strategies can ensure nurse-patient ratios remain strong and mitigate any losses in workforce productivity, but labor costs can skyrocket unnecessarily if hospital administrators don't strategically align the caregiver to patient care needs. Nurses often don't simply work 32 to 40 hours a week- 43 percent have said that they've experienced an increase in overtime 2 . Fifty-four percent of nurses report excessive workloads 3 . A hospital's budget is impacted by managing nurse overtime through effective staffing and scheduling. With an increase in staffing efficiencies, overtime costs are controlled, which benefits the entire organization. Replacing a valued health care employee can cost up to 250% of the employee's salary 4 . When CFOs consider the national rate of nurse turnover rose to 14.7 percent, an increase of more than 1 percent from 2012 according to the "2013 National The financial impact of acuity-based staffing By API Healthcare, a GE Company " " Replacing a valued healthcare employee can cost up to 250% of the employee's salary.