Revolutionizing Healthcare Labor Strategies: From External Reliance to Internal Empowerment

A leading healthcare system headquartered in the Southeast, with a network of hospitals and a variety of ancillary health services, was facing a decision to continue with the status quo or insource control of their human capital and workforce solutions.

The Challenge:

Prior to partnering with HWL, the system was struggling with their usage of external labor along with starts and stops within their own internal and local program delivery. Like numerous healthcare institutions nationwide, the pandemic heightened the reliance on temporary staff to maintain operational fluidity, but post pandemic they were seeking new ways to truly reposition themselves and develop a comprehensive labor strategy.

Key Challenges:

• Legacy solution modeling provided less than true vendor neutrality, lack of rate setting tools, reporting without full transparency, and process delivery that left more to be desired by all areas.
• The absence of visibility prevented the health system from taking a more holistic strategy and left them still operating in their long-standing silos.

Given these challenges, they took the step of initially engaging a legacy model based Managed Service Program (MSP). Early on though, they came to realize the inefficiencies associated when there wasn’t true vendor neutrality or a focus on reducing that labor usage, which is an inherent conflict in many agency-led or owned offerings. This, coupled with a lack of rate controls and system/reporting transparency, ended up providing a limited line of sight, which derailed some internal initiatives. Given this, the system was seeking a more holistic technology, advisory and process optimization partner to allow them to take full and complete control of their program and usage.

The Objective:

The goal by engaging HWL was clear, reduce reliance on external labor, empower an internal strategy, and gain a true partner to help enhance delivery while providing details insights to ensure strategic goals were met.

“Our partnership with this health system has been truly enriching," states Claudia Jayne, Workforce Management Director at HWL. "Our Account Management team's unwavering dedication allowed us to confront challenges directly and implement effective solutions. Through this holistic approach, we not only optimized their operational efficiency but also provided comprehensive visibility, empowering informed decision-making every step of the way.”

The Solution:

• Laid the baseline foundation of a truly vendor neutral MSP and delivery team to establish not only the VMS for day-to-day management, but also a full reporting suite to track all internal and external delivery to provide the actional data needed to achieve their goals.
• Integrated invoicing and reporting functionalities into an automated system that can be quickly and easily accessed to provide direct visibility into usage at any of the health system’s facilities.
• Implement a centralized workforce process that empowers the health system to post requisitions and network internally and with vendors seamlessly, reducing administrative overheads, and upholding quality standards for their contingent workers.

“It’s immensely fulfilling to witness the transformation our solutions bring to healthcare systems like the one in the Southeast," Trevor Strauss, Vice President of Business Development at HWL emphasizes. "By empowering them to insource control of their human capital and workforce solutions, we're not just addressing challenges; we're revolutionizing how they operate. Our approach, rooted in true vendor neutrality and comprehensive data insights, allows them to reduce reliance on external labor, streamline processes, and ultimately, achieve their strategic goals.”

Results & Savings:

By focusing on a multi-layered approach and building a local flex team, local agency, private labeled internal agency, and managing external agencies in one place; the client achieved significant results rapidly, including:

• External labor savings of $8million (post covid rate reductions) within year 1
• Reduced external labor usage of 30%+ across all units
• Development of a local agency of over 300 active candidates staffing 40%+ of all coverage monthly
• Transition into a Private Label Agency model of over 250 staff for external coverage at a lower cost of almost 30%

By taking a holistic approach to their strategy and engaging the teams and tools of HWL, the health system is poised to truly strengthen their financial position and has been able to enhance their patient care delivery. To learn more about HWL or for a review of your situation by one of our expert team, connect with a team member today.