---
title: Healthcare Workforce Logistics Insights - in the News
description: The latest HWL developments and News on contingent workforce management in healthcare.
---

[VMS Login](https://vms.hwlmsp.com/)

[![HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM](https://blog.hwlworks.com/hs-fs/hubfs/HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM.jpg?width=201&height=75&name=HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM.jpg "HWL_2C_300DPI-Aug-29-2023-12-27-59-4566-PM")](https://www.hwlmsp.com/)

[Create Your Own Internal Agency](https://blog.hwlworks.com/news/page/1#)

### x**Internal Agency Development** Healthcare Workforce Logistics can help you build and manage your own internal agency to lower costs and improve the experience of healthcare workers. [Learn More](https://www.hwlmsp.com/create-your-own-internal-agency/)

# HWL Insights

Healthcare Workforce Solutions Staffing Optimization Contingent Labor 

[![Introducing SoCal Works: A Transformative Approach to Contingent Staffing for HASC Members](https://blog.hwlworks.com/hubfs/introducing.png) ](https://blog.hwlworks.com/news/introducing-socal-works-a-transformative-approach-to-contingent-staffing-for-hasc-members)

### [Introducing SoCal Works: A Transformative](https://blog.hwlworks.com/news/introducing-socal-works-a-transformative-approach-to-contingent-staffing-for-hasc-members)

HWL is proud to announce its partnership with HASC (Hospital Association of Southern California) to 

[Read More](https://blog.hwlworks.com/news/introducing-socal-works-a-transformative-approach-to-contingent-staffing-for-hasc-members)

Lori Kiesel Apr 10, 2025 2Min Read

Locum Tenens Workforce Optimzation Physician Staffing 

[![HWL Expands Next-Generation Physician and Provider Solutions for Healthcare Organizations Nationwide](https://blog.hwlworks.com/hubfs/AdobeStock_649113864.jpeg) ](https://blog.hwlworks.com/news/hwl-expands-next-generation-physician-and-provider-solutions-for-healthcare-organizations-nationwide)

### [HWL Expands Next-Generation Physician and](https://blog.hwlworks.com/news/hwl-expands-next-generation-physician-and-provider-solutions-for-healthcare-organizations-nationwide)

ATLANTA--(BUSINESS WIRE)--Healthcare Workforce Logistics (HWL), the leader in vendor-neutral 

[Read More](https://blog.hwlworks.com/news/hwl-expands-next-generation-physician-and-provider-solutions-for-healthcare-organizations-nationwide)

Karen Little Apr 2, 2025 3Min Read

industry insights healthcare leadership Advisory Council 

[![HWL introduces Advisory Councils to Drive Innovation and Excellence in Healthcare Workforce Solutions](https://blog.hwlworks.com/hubfs/AdobeStock_273844408.jpeg) ](https://blog.hwlworks.com/news/hwl-launches-advisory-councils)

### [HWL introduces Advisory Councils to Drive](https://blog.hwlworks.com/news/hwl-launches-advisory-councils)

ATLANTA--(BUSINESS WIRE)--Healthcare Workforce Logistics (HWL), a leader in vendor neutral 

[Read More](https://blog.hwlworks.com/news/hwl-launches-advisory-councils)

Jonathan Ward Mar 19, 2025 2Min Read

Workplace Culture 

[![HWL Named One of the top Companies to Work For in Healthcare](https://blog.hwlworks.com/hubfs/Healthcare-LogoBadge-Winner-Color-tm.png) ](https://blog.hwlworks.com/news/hwl-named-one-of-the-best-companies-to-work-for-in-healthcare)

### [HWL Named One of the top Companies to Work For in](https://blog.hwlworks.com/news/hwl-named-one-of-the-best-companies-to-work-for-in-healthcare)

At HWL, we believe that meaningful work makes a difference—not just for the healthcare 

[Read More](https://blog.hwlworks.com/news/hwl-named-one-of-the-best-companies-to-work-for-in-healthcare)

Jonathan Ward Feb 5, 2025 1Min Read

Healthcare Workforce Solutions 

[![Innovation and the Power Dynamic within Healthcare Staffing](https://blog.hwlworks.com/hubfs/beckers%20podcast%202025-1.png) ](https://blog.hwlworks.com/news/innovation-and-the-power-dynamic-within-healthcare-staffing)

### [Innovation and the Power Dynamic within](https://blog.hwlworks.com/news/innovation-and-the-power-dynamic-within-healthcare-staffing)

In this latest episode of the Becker's Healthcare Podcast, Trevor Strauss, FACHE, Vice President at 

[Read More](https://blog.hwlworks.com/news/innovation-and-the-power-dynamic-within-healthcare-staffing)

Trevor Strauss, FACHE Jan 23, 2025 0Min Read

Healthcare Workforce Solutions 

[![Navigating Challenges and Embracing Opportunities in Healthcare Labor: Insights with Trevor Strauss](https://blog.hwlworks.com/hubfs/beckers%20podcast%202025.png) ](https://blog.hwlworks.com/news/navigating-challenges-and-embracing-opportunities-in-healthcare-labor-insights-with-trevor-strauss)

### [Navigating Challenges and Embracing Opportunities](https://blog.hwlworks.com/news/navigating-challenges-and-embracing-opportunities-in-healthcare-labor-insights-with-trevor-strauss)

In this episode of the Becker's Healthcare Podcast series, Lukas Voss speaks with Trevor Strauss 

[Read More](https://blog.hwlworks.com/news/navigating-challenges-and-embracing-opportunities-in-healthcare-labor-insights-with-trevor-strauss)

Trevor Strauss, FACHE Jan 23, 2025 1Min Read

Healthcare Labor Costs Contingent Labor Workforce Management Cost Optimization 

[![Rethinking healthcare labor cost savings strategies: A nursing workforce optimization executive’s perspective on contingent labor](https://blog.hwlworks.com/hubfs/AdobeStock_1097065433.jpeg) ](https://blog.hwlworks.com/news/rethinking-healthcare-labor-cost-savings-strategies-a-nursing-workforce-optimization-executives-perspective-on-contingent-labor)

### [Rethinking healthcare labor cost savings](https://blog.hwlworks.com/news/rethinking-healthcare-labor-cost-savings-strategies-a-nursing-workforce-optimization-executives-perspective-on-contingent-labor)

Most modern healthcare systems face overwhelming odds to serve their communities. Reduced or 

[Read More](https://blog.hwlworks.com/news/rethinking-healthcare-labor-cost-savings-strategies-a-nursing-workforce-optimization-executives-perspective-on-contingent-labor)

Amanda Wheeler, RN, BSN, MBA Jan 15, 2025 6Min Read

[![First Collaboration Under New Law Approved for 25 Rural Colorado Hospitals](https://blog.hwlworks.com/hubfs/shutterstock_2146627379.jpg) ](https://blog.hwlworks.com/news/first-collaboration-under-new-law-approved-for-25-rural-colorado-hospitals)

### [First Collaboration Under New Law Approved for 25](https://blog.hwlworks.com/news/first-collaboration-under-new-law-approved-for-25-rural-colorado-hospitals)

Last week, the first collaboration between rural hospitals as allowed now by Senate Bill 23-298 was 

[Read More](https://blog.hwlworks.com/news/first-collaboration-under-new-law-approved-for-25-rural-colorado-hospitals)

Lauren Cabral Mar 18, 2024 2Min Read

[![Upstate Works: A Collaborative Triumph Reshaping Healthcare Staffing, Empowering Hospitals, and Attracting Top Talent](https://blog.hwlworks.com/hubfs/state-of-hc.jpg) ](https://blog.hwlworks.com/news/upstate-works-a-collaborative-triumph-reshaping-healthcare-staffing-empowering-hospitals-and-attracting-top-talent)

### [Upstate Works: A Collaborative Triumph Reshaping](https://blog.hwlworks.com/news/upstate-works-a-collaborative-triumph-reshaping-healthcare-staffing-empowering-hospitals-and-attracting-top-talent)

In the face of the COVID-19 pandemic, Upstate New York's healthcare systems grappled with a 

[Read More](https://blog.hwlworks.com/news/upstate-works-a-collaborative-triumph-reshaping-healthcare-staffing-empowering-hospitals-and-attracting-top-talent)

Jeff Niles Mar 15, 2024 4Min Read

[![Maximizing Cost Savings: The Benefits of Direct Sourcing Contingent Labor for Hospitals](https://blog.hwlworks.com/hubfs/national-cancer-institute-NFvdKIhxYlU-unsplash.jpg) ](https://blog.hwlworks.com/news/maximizing-cost-savings-the-benefits-of-direct-sourcing-contingent-labor-for-hospitals)

### [Maximizing Cost Savings: The Benefits of Direct](https://blog.hwlworks.com/news/maximizing-cost-savings-the-benefits-of-direct-sourcing-contingent-labor-for-hospitals)

Health systems across the country continue to suffer from chronic staffing deficits which heavily 

[Read More](https://blog.hwlworks.com/news/maximizing-cost-savings-the-benefits-of-direct-sourcing-contingent-labor-for-hospitals)

Jeff Niles Mar 13, 2024 3Min Read

[![How Grady Health System Transformed Contingent Labor Management with Grady Works Saving Millions On Agency Spending](https://blog.hwlworks.com/hubfs/grady_001-1-1024x683.jpg) ](https://blog.hwlworks.com/news/how-grady-health-system-transformed-contingent-labor-management-with-grady-works-saving-millions-on-agency-spending)

### [How Grady Health System Transformed Contingent](https://blog.hwlworks.com/news/how-grady-health-system-transformed-contingent-labor-management-with-grady-works-saving-millions-on-agency-spending)

Grady Health System (GHS) employs 3,000 physicians representing over 80 medical specialties and is 

[Read More](https://blog.hwlworks.com/news/how-grady-health-system-transformed-contingent-labor-management-with-grady-works-saving-millions-on-agency-spending)

Jeff Niles Mar 13, 2024 3Min Read

[![Travel Nurse Rates: A Look Back and Future Guidance](https://www.beckershospitalreview.com/images/Picture_1.png) ](https://blog.hwlworks.com/news/travel-nurse-rates-a-look-back-and-future-guidance)

### [Travel Nurse Rates: A Look Back and Future](https://blog.hwlworks.com/news/travel-nurse-rates-a-look-back-and-future-guidance)

The last three years have been a tumultuous time for hospitals, healthcare organizations, and other 

[Read More](https://blog.hwlworks.com/news/travel-nurse-rates-a-look-back-and-future-guidance)

Robert Longyear Mar 13, 2024 3Min Read

[![How One Health System Developed an Internal Agency to Lower Contingent Staffing Costs by 30%](https://blog.hwlworks.com/hubfs/augusta-university-childrens-hospital-exp-rendering-12.jpg) ](https://blog.hwlworks.com/news/how-one-health-system-developed-an-internal-agency-to-lower-contingent-staffing-costs-by-30)

### [How One Health System Developed an Internal](https://blog.hwlworks.com/news/how-one-health-system-developed-an-internal-agency-to-lower-contingent-staffing-costs-by-30)

ABOUT AUGUSTA UNIVERSITY HEALTH MEDICAL CENTER

[Read More](https://blog.hwlworks.com/news/how-one-health-system-developed-an-internal-agency-to-lower-contingent-staffing-costs-by-30)

Jeff Niles Mar 13, 2024 4Min Read

Healthcare Workforce Solutions 

[![An Integrated VMS/MSP Solution that Aims to Simplify Locum Tenens MaNagement](https://blog.hwlworks.com/hubfs/locum-profile-hwl.jpg) ](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works-0)

### [An Integrated VMS/MSP Solution that Aims to](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works-0)

[Read More](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works-0)

Trevor Strauss, FACHE Jan 12, 2024 4Min Read

Healthcare Workforce Solutions 

[![Healthcare Workforce Logistics Introduces HWL Works](https://blog.hwlworks.com/hubfs/Screenshot-2023-05-12-at-1.34.30-PM.png) ](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works)

### [Healthcare Workforce Logistics Introduces HWL](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works)

[Read More](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works)

Jeff Niles Oct 12, 2023 2Min Read

[![Upstate New York hospitals test new hiring model to ease staffing crisis](https://blog.hwlworks.com/hubfs/AP21233860878195.jpg) ](https://blog.hwlworks.com/news/upstate-new-york-hospitals-test-new-hiring-model-to-ease-staffing-crisis)

### [Upstate New York hospitals test new hiring model](https://blog.hwlworks.com/news/upstate-new-york-hospitals-test-new-hiring-model-to-ease-staffing-crisis)

Health facilities, especially in upstate communities, are getting creative to battle staffing 

[Read More](https://blog.hwlworks.com/news/upstate-new-york-hospitals-test-new-hiring-model-to-ease-staffing-crisis)

Jeff Niles Dec 10, 2022 2Min Read

[![Healthcare Workforce Logistics (HWL) Awarded Technology and Workforce Management Services Agreement with Conductiv](https://blog.hwlworks.com/hubfs/1-1.jpg) ](https://blog.hwlworks.com/news/healthcare-workforce-logistics-hwl-awarded-technology-and-workforce-management-services-agreement-with-conductiv)

### [Healthcare Workforce Logistics (HWL) Awarded](https://blog.hwlworks.com/news/healthcare-workforce-logistics-hwl-awarded-technology-and-workforce-management-services-agreement-with-conductiv)

ATLANTA, Aug. 29, 2022 /PRNewswire/ -- Healthcare Workforce Logistics (HWL), the nation's innovator 

[Read More](https://blog.hwlworks.com/news/healthcare-workforce-logistics-hwl-awarded-technology-and-workforce-management-services-agreement-with-conductiv)

Jeff Niles Dec 9, 2022 2Min Read

[![The Iroquois Healthcare Association Creates Alternative to Traditional Healthcare Staffing Agencies](https://blog.hwlworks.com/hubfs/upstate-works.png) ](https://blog.hwlworks.com/news/the-iroquois-healthcare-association-creates-alternative-to-traditional-healthcare-staffing-agencies)

### [The Iroquois Healthcare Association Creates](https://blog.hwlworks.com/news/the-iroquois-healthcare-association-creates-alternative-to-traditional-healthcare-staffing-agencies)

The Iroquois Healthcare Association Creates Alternative to Traditional Healthcare Staffing Agencies 

[Read More](https://blog.hwlworks.com/news/the-iroquois-healthcare-association-creates-alternative-to-traditional-healthcare-staffing-agencies)

Jeff Niles Dec 7, 2022 2Min Read

Rapid Response COVID-19 

[![JACKSON HEALTHCARE ANSWERS THE CALL FOR COVID-19 ASSISTANCE](https://blog.hwlworks.com/hubfs/Capture.jpg) ](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-for-covid-19-assistance)

### [JACKSON HEALTHCARE ANSWERS THE CALL FOR COVID-19](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-for-covid-19-assistance)

Transcription:

[Read More](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-for-covid-19-assistance)

Jeff Niles Apr 22, 2020 2Min Read

[![JACKSON HEALTHCARE ANSWERS THE CALL TO HELP GEORGIA DURING THE COVID-19 CRISIS](https://blog.hwlworks.com/hubfs/company_image_1.jpg) ](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-to-help-georgia-during-the-covid-19-crisis)

### [JACKSON HEALTHCARE ANSWERS THE CALL TO HELP](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-to-help-georgia-during-the-covid-19-crisis)

State of Georgia Calls on Jackson Healthcare to Fulfill Healthcare Staffing Needs in Fight Against 

[Read More](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-to-help-georgia-during-the-covid-19-crisis)

Jessica Lacy Apr 17, 2020 3Min Read

![Introducing SoCal Works: A Transformative Approach to Contingent Staffing for HASC Members](https://blog.hwlworks.com/hubfs/introducing.png)

## [Introducing SoCal Works: A Transformative Approach to Contingent Staffing for HASC Members](https://blog.hwlworks.com/news/introducing-socal-works-a-transformative-approach-to-contingent-staffing-for-hasc-members)

Apr 10, 2025 9:12:03 AM/By [Lori Kiesel](https://blog.hwlworks.com/news/author/lori-kiesel)

HWL is proud to announce its partnership with [HASC ](https://hasc.org/)(Hospital Association of Southern California) to launch [**SoCal Works**](https://hasc.org/initiatives-resources/all-initiatives/human-resources/socal-works/), an exclusive contingent staffing program designed to give HASC members greater control, cost savings and workforce transparency.

[Read More](https://blog.hwlworks.com/news/introducing-socal-works-a-transformative-approach-to-contingent-staffing-for-hasc-members)

![HWL Expands Next-Generation Physician and Provider Solutions for Healthcare Organizations Nationwide](https://blog.hwlworks.com/hubfs/AdobeStock_649113864.jpeg)

## [HWL Expands Next-Generation Physician and Provider Solutions for Healthcare Organizations Nationwide](https://blog.hwlworks.com/news/hwl-expands-next-generation-physician-and-provider-solutions-for-healthcare-organizations-nationwide)

Apr 2, 2025 9:50:26 AM/By [Karen Little](https://blog.hwlworks.com/news/author/karen-little)

ATLANTA--([BUSINESS WIRE](https://www.businesswire.com/))--[Healthcare Workforce Logistics](https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.hwlworks.com&esheet=54229926&newsitemid=20250331034363&lan=en-US&anchor=Healthcare+Workforce+Logistics&index=1&md5=024a774c2eb744ad97cc52808c9046cc) (HWL), the leader in vendor-neutral healthcare workforce solutions, announced the rebranding of its Locums Division to “Physician and Provider Solutions” to better reflect the expanded suite of healthcare workforce optimization services it delivers to its clients.

[Read More](https://blog.hwlworks.com/news/hwl-expands-next-generation-physician-and-provider-solutions-for-healthcare-organizations-nationwide)

![HWL introduces Advisory Councils to Drive Innovation and Excellence in Healthcare Workforce Solutions](https://blog.hwlworks.com/hubfs/AdobeStock_273844408.jpeg)

## [HWL introduces Advisory Councils to Drive Innovation and Excellence in Healthcare Workforce Solutions](https://blog.hwlworks.com/news/hwl-launches-advisory-councils)

Mar 19, 2025 10:32:41 AM/By [Jonathan Ward](https://blog.hwlworks.com/news/author/jonathan-ward)

ATLANTA--([BUSINESS WIRE](https://www.businesswire.com/))--[Healthcare Workforce Logistics](https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fhwlworks.com%2F&esheet=54225601&newsitemid=20250319553700&lan=en-US&anchor=Healthcare+Workforce+Logistics&index=1&md5=932dc31036eb1eb4749566264e6c8cf8) (HWL), a leader in vendor neutral healthcare workforce solutions, today announced the formation of its Executive Advisory Council and Client Advisory Council. Designed to bring together industry experts, healthcare leaders and HWL clients, the councils are part of the company’s commitment to continuously drive innovation, provide strategic guidance and foster partnership.

[Read More](https://blog.hwlworks.com/news/hwl-launches-advisory-councils)

![HWL Named One of the top Companies to Work For in Healthcare](https://blog.hwlworks.com/hubfs/Healthcare-LogoBadge-Winner-Color-tm.png)

## [HWL Named One of the top Companies to Work For in Healthcare](https://blog.hwlworks.com/news/hwl-named-one-of-the-best-companies-to-work-for-in-healthcare)

Feb 5, 2025 8:00:00 AM/By [Jonathan Ward](https://blog.hwlworks.com/news/author/jonathan-ward)

At HWL, we believe that meaningful work makes a difference—not just for the healthcare organizations we support, but for our own team members as well. That’s why we’re incredibly honored to be recognized as one of Healthcare Innovation's **Top Companies to Work For in Healthcare**.

[Read More](https://blog.hwlworks.com/news/hwl-named-one-of-the-best-companies-to-work-for-in-healthcare)

![Innovation and the Power Dynamic within Healthcare Staffing](https://blog.hwlworks.com/hubfs/beckers%20podcast%202025-1.png)

## [Innovation and the Power Dynamic within Healthcare Staffing](https://blog.hwlworks.com/news/innovation-and-the-power-dynamic-within-healthcare-staffing)

Jan 23, 2025 4:39:09 PM/By [Trevor Strauss, FACHE](https://blog.hwlworks.com/news/author/trevor-strauss)

In this latest episode of the Becker's Healthcare Podcast, Trevor Strauss, FACHE, Vice President at HWL, discusses the intricacies of innovation within healthcare staffing. Joined by Brian Zimmerman, they explore evolving strategies in response to workforce challenges, prioritizing staffing initiatives, and the future of building sustainable pipelines. Tune in for insights into the power dynamics shaping healthcare staffing decisions.

[Read More](https://blog.hwlworks.com/news/innovation-and-the-power-dynamic-within-healthcare-staffing)

![Navigating Challenges and Embracing Opportunities in Healthcare Labor: Insights with Trevor Strauss](https://blog.hwlworks.com/hubfs/beckers%20podcast%202025.png)

## [Navigating Challenges and Embracing Opportunities in Healthcare Labor: Insights with Trevor Strauss](https://blog.hwlworks.com/news/navigating-challenges-and-embracing-opportunities-in-healthcare-labor-insights-with-trevor-strauss)

Jan 23, 2025 3:52:01 PM/By [Trevor Strauss, FACHE](https://blog.hwlworks.com/news/author/trevor-strauss)

In this episode of the Becker's Healthcare Podcast series, Lukas Voss speaks with Trevor Strauss about the evolving landscape of healthcare labor. They explore workforce challenges, shifting expectations among healthcare professionals, and how health systems are innovating to meet financial sustainability while prioritizing patient care.

[Read More](https://blog.hwlworks.com/news/navigating-challenges-and-embracing-opportunities-in-healthcare-labor-insights-with-trevor-strauss)

![Rethinking healthcare labor cost savings strategies: A nursing workforce optimization executive’s perspective on contingent labor](https://blog.hwlworks.com/hubfs/AdobeStock_1097065433.jpeg)

## [Rethinking healthcare labor cost savings strategies: A nursing workforce optimization executive’s perspective on contingent labor](https://blog.hwlworks.com/news/rethinking-healthcare-labor-cost-savings-strategies-a-nursing-workforce-optimization-executives-perspective-on-contingent-labor)

Jan 15, 2025 3:34:10 PM/By [Amanda Wheeler, RN, BSN, MBA](https://blog.hwlworks.com/news/author/amanda-wheeler-rn-bsn-mba)

Most modern healthcare systems face overwhelming odds to serve their communities. Reduced or quality-driven reimbursements from payers, historic inflation levels, increasing demand from an aging population and public scrutiny create immense pressure to control costs, streamline operations and improve patient outcomes. This cultivates an environment where workforce optimization strategies often become polarizing and contentious, leading to decisions that prioritize immediate cost savings as a matter of survival. 

One such approach is the complete elimination of contingent workforce usage, pursued in the belief that it will reduce overall labor expenses. However, as healthcare’s largest workforce (nursing) evolves, this strategy often backfires, triggering unintended consequences such as inadequate or unsafe staffing perceptions, core staff burnout, increased turnover and refractory overreliance on contract labor to avoid bed closures and lost revenue. This vicious cycle not only proves financially unsustainable but also undermines workforce agility and fails to meet the flexibility demands of today’s healthcare professionals. 

Moreover, zero contingent workforce budgeting diverges sharply from best practices in workforce management science, which emphasizes balancing core and contingent staff to optimize flexibility, efficiency and outcomes. In this article, we will explore the implications, consequences and alternative best practice suggestions to consider instead. 

**Why “total elimination of contract labor use” isn’t a sustainable cost savings strategy**

**1. Reduced workforce agility**  
Healthcare is inherently unpredictable. From seasonal surges like flu season, to unexpected crises such as pandemics or natural disasters, healthcare systems require staffing models that can respond quickly and efficiently. Contract labor is a critical lever to address these unplanned needs, especially for healthcare organizations whose full-time equivalent (FTE) budget and staffing plans are predicated on historical average daily census at less than the 75th peer benchmark percentiles. Eliminating contract labor without alternative contingencies in place leaves organizations with unpredictable and rigid staffing response models that struggle to adapt to variability. This lack of agility can result in operational bottlenecks, increased patient wait times and diminished quality of care.

**2. Diminished talent flexibility**  
Today’s workforce increasingly [values](https://www.oliverwyman.com/our-expertise/perspectives/health/2022/mar/healthcare-workers-moving-to-gig-work-in-record-numbers.html) flexibility. Healthcare professionals, especially millennials and Gen Z workers, are drawn to roles that align with their personal and professional goals, such as per diem, seasonal or travel arrangements. By removing these options, healthcare systems risk alienating a significant segment of the existing talent pool and missing out on untapped staffing resources that are interested in working within more nimble programs, [driving up](https://www.nursingworld.org/globalassets/practiceandpolicy/nurse-staffing/nurse-staffing-think-tank-gap-analysis-tool-for-priority-topics-and-recommendations.pdf) voluntary turnover among permanent staff.

**3. Financial implications**  
While the intention of eliminating contract labor is to cut costs and may be successful in the short term, it often results in the opposite in the long term. Overworked permanent staff face burnout, which leads to increased absenteeism, higher turnover and the need for costly overtime, expedited hiring processes and rapid response travel nurses at a premium rate. Additionally, lower staff morale often correlates with decreased patient satisfaction and outcomes, potentially impacting reimbursement rates and organizational reputation.

**Unintended and refractory consequences**

When healthcare organizations attempt to eliminate contract labor in totality, they often face a series of unintended and self-perpetuating challenges:

**1. Increased burnout and turnover among core staff**  
Without contingent workers to alleviate the burden during high-demand periods, permanent staff are forced to work longer shifts, take on additional responsibilities and cope with heightened stress. Over time, this leads to higher rates of burnout, absenteeism and turnover—creating a vicious cycle where remaining staff are further burdened and begin to seek alternative, more flexible work options, leading them to exit organizations that do not offer these options. Recent findings show that over the past five years, cumulative average turnover among medical surgical, stepdown, telemetry and emergency nurses to be estimated at 115%, according to a 2024 NSI analysis.

**2. Erosion of patient care quality**  
Staff burnout and understaffing directly impact patient care. Exhausted staff are more prone to errors, delays in treatment, and lapses in communication. Patient satisfaction scores decline, and nursing driven quality metrics decrease, and hospital acquired injury increases; potentially affecting CMS reimbursement and the hospital's overall reputation, according to Press Ganey.

**3. Inability to respond to crises**  
Healthcare crises—such as pandemics or mass casualty events—often require a surge workforce. Without access to a robust contingent workforce, healthcare systems are left scrambling to fill gaps, frequently resorting to costly and inefficient last-minute solutions. This not only strains finances but can also compromise the system’s ability to deliver timely, high-quality care. Prevalence of this phenomenon initiated the dramatic demand for travel nurses during the COVID-19 pandemic, leading to unprecedented increases in traveler bill and pay rates on a national scale.

**4. Higher long-term costs and lost revenue**  
Eliminating contract labor doesn’t eliminate the need for flexible staffing—it merely shifts the cost burden and creates missed revenue opportunities in the short term. Organizations often find themselves paying more in overtime wages, expedited hiring costs, and/or closing licensed beds, suspending service offerings, or shuttering service lines altogether as a result on inability to fill staffing gaps. Studies have shown that reactive hiring practices can be 1.5–2 times more expensive than maintaining a well-managed contingent workforce, Modern Healthcare reported in 2022. According to the American Nurses Association, turnover can cost healthcare systems up to $88,000 per nurse annually in replacement and onboarding costs in addition to the contract labor expenses for covering staffing absence.

**5. Deterioration of employer brand**  
Lack of nimble staffing model offerings that overworks permanent staff and provides no alternative options for flexibility can harm an organization's reputation as an employer. Recruitment conundrums such as the need to add non-budgeted human capital to talent acquisition teams to manage higher open requisition load, prolonged post-to-fill times and increased negotiations for higher compensation to offset lack of flexibility can make it increasingly difficult to attract top talent in a competitive labor market, further exacerbating staffing shortages, according to KPMG.

**Best practices for healthy contingent workforce utilization**

A more sustainable and effective strategy is to diversify the contingent workforce pipeline and harness its potential thoughtfully. Here are key suggestions for optimizing fiscally sustainable contingent workforce usage:

**1. Develop an internal contingent workforce**  
Cultivating internal or “insourced” contingent resource pool options allows organizations to achieve maximum flexibility while reducing reliance on external staffing agencies. This can include creating or accessing existing per diem pools, float teams at the facility and enterprise level, or seasonal staffing programs. Internal contingent staff are often more cost-effective than external agency workers and can [align closely](https://home.kpmg/xx/en/home.html) with the organization’s culture and care standards.  

[Read More](https://blog.hwlworks.com/news/rethinking-healthcare-labor-cost-savings-strategies-a-nursing-workforce-optimization-executives-perspective-on-contingent-labor)

![First Collaboration Under New Law Approved for 25 Rural Colorado Hospitals](https://blog.hwlworks.com/hubfs/shutterstock_2146627379.jpg)

## [First Collaboration Under New Law Approved for 25 Rural Colorado Hospitals](https://blog.hwlworks.com/news/first-collaboration-under-new-law-approved-for-25-rural-colorado-hospitals)

Mar 18, 2024 9:13:23 AM/By [Lauren Cabral](https://blog.hwlworks.com/news/author/lauren-cabral)

![Upstate Works: A Collaborative Triumph Reshaping Healthcare Staffing, Empowering Hospitals, and Attracting Top Talent](https://blog.hwlworks.com/hubfs/state-of-hc.jpg)

## [Upstate Works: A Collaborative Triumph Reshaping Healthcare Staffing, Empowering Hospitals, and Attracting Top Talent](https://blog.hwlworks.com/news/upstate-works-a-collaborative-triumph-reshaping-healthcare-staffing-empowering-hospitals-and-attracting-top-talent)

Mar 15, 2024 12:05:40 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

![Maximizing Cost Savings: The Benefits of Direct Sourcing Contingent Labor for Hospitals](https://blog.hwlworks.com/hubfs/national-cancer-institute-NFvdKIhxYlU-unsplash.jpg)

## [Maximizing Cost Savings: The Benefits of Direct Sourcing Contingent Labor for Hospitals](https://blog.hwlworks.com/news/maximizing-cost-savings-the-benefits-of-direct-sourcing-contingent-labor-for-hospitals)

Mar 13, 2024 4:02:58 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

![How Grady Health System Transformed Contingent Labor Management with Grady Works Saving Millions On Agency Spending](https://blog.hwlworks.com/hubfs/grady_001-1-1024x683.jpg)

## [How Grady Health System Transformed Contingent Labor Management with Grady Works Saving Millions On Agency Spending](https://blog.hwlworks.com/news/how-grady-health-system-transformed-contingent-labor-management-with-grady-works-saving-millions-on-agency-spending)

Mar 13, 2024 4:00:26 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

![Travel Nurse Rates: A Look Back and Future Guidance](https://www.beckershospitalreview.com/images/Picture_1.png)

## [Travel Nurse Rates: A Look Back and Future Guidance](https://blog.hwlworks.com/news/travel-nurse-rates-a-look-back-and-future-guidance)

Mar 13, 2024 3:57:49 PM/By [Robert Longyear](https://blog.hwlworks.com/news/author/robert-longyear)

![How One Health System Developed an Internal Agency to Lower Contingent Staffing Costs by 30%](https://blog.hwlworks.com/hubfs/augusta-university-childrens-hospital-exp-rendering-12.jpg)

## [How One Health System Developed an Internal Agency to Lower Contingent Staffing Costs by 30%](https://blog.hwlworks.com/news/how-one-health-system-developed-an-internal-agency-to-lower-contingent-staffing-costs-by-30)

Mar 13, 2024 3:54:49 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

![An Integrated VMS/MSP Solution that Aims to Simplify Locum Tenens MaNagement](https://blog.hwlworks.com/hubfs/locum-profile-hwl.jpg)

## [An Integrated VMS/MSP Solution that Aims to Simplify Locum Tenens MaNagement](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works-0)

Jan 11, 2024 7:01:17 PM/By [Trevor Strauss, FACHE](https://blog.hwlworks.com/news/author/trevor-strauss)

 

[Read More](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works-0)

![Healthcare Workforce Logistics Introduces HWL Works](https://blog.hwlworks.com/hubfs/Screenshot-2023-05-12-at-1.34.30-PM.png)

## [Healthcare Workforce Logistics Introduces HWL Works](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works)

Oct 12, 2023 4:36:56 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

 

[Read More](https://blog.hwlworks.com/news/healthcare-workforce-logistics-introduces-hwl-works)

![Upstate New York hospitals test new hiring model to ease staffing crisis](https://blog.hwlworks.com/hubfs/AP21233860878195.jpg)

## [Upstate New York hospitals test new hiring model to ease staffing crisis](https://blog.hwlworks.com/news/upstate-new-york-hospitals-test-new-hiring-model-to-ease-staffing-crisis)

Dec 9, 2022 7:19:32 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

![Healthcare Workforce Logistics (HWL) Awarded Technology and Workforce Management Services Agreement with Conductiv](https://blog.hwlworks.com/hubfs/1-1.jpg)

## [Healthcare Workforce Logistics (HWL) Awarded Technology and Workforce Management Services Agreement with Conductiv](https://blog.hwlworks.com/news/healthcare-workforce-logistics-hwl-awarded-technology-and-workforce-management-services-agreement-with-conductiv)

Dec 9, 2022 6:46:41 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

![The Iroquois Healthcare Association Creates Alternative to Traditional Healthcare Staffing Agencies](https://blog.hwlworks.com/hubfs/upstate-works.png)

## [The Iroquois Healthcare Association Creates Alternative to Traditional Healthcare Staffing Agencies](https://blog.hwlworks.com/news/the-iroquois-healthcare-association-creates-alternative-to-traditional-healthcare-staffing-agencies)

Dec 7, 2022 4:32:49 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

![JACKSON HEALTHCARE ANSWERS THE CALL FOR COVID-19 ASSISTANCE](https://blog.hwlworks.com/hubfs/Capture.jpg)

## [JACKSON HEALTHCARE ANSWERS THE CALL FOR COVID-19 ASSISTANCE](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-for-covid-19-assistance)

Apr 22, 2020 5:06:03 PM/By [Jeff Niles](https://blog.hwlworks.com/news/author/jeff-niles)

**Transcription:**

[Read More](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-for-covid-19-assistance)

![JACKSON HEALTHCARE ANSWERS THE CALL TO HELP GEORGIA DURING THE COVID-19 CRISIS](https://blog.hwlworks.com/hubfs/company_image_1.jpg)

## [JACKSON HEALTHCARE ANSWERS THE CALL TO HELP GEORGIA DURING THE COVID-19 CRISIS](https://blog.hwlworks.com/news/jackson-healthcare-answers-the-call-to-help-georgia-during-the-covid-19-crisis)

Apr 17, 2020 3:41:30 PM/By [Jessica Lacy](https://blog.hwlworks.com/news/author/jessica-lacy)

[1](https://blog.hwlworks.com/news/page/1) [2](https://blog.hwlworks.com/news/page/2)

[❯](https://blog.hwlworks.com/news/page/2)

Page 1 of 2

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