HWL Insights

In healthcare staffing, promoting diversity and inclusivity is not only ethically imperative but also strategically beneficial. Disadvantaged Business Enterprises (DBE) programs play a central role in achieving these goals. DBEs are businesses owned and operated by individuals confronting social and economic challenges, encompassing minority-owned, women-owned, veteran-owned, and disabled-owned enterprises, among others. These programs are designed to provide equitable access for DBEs to participate in federally funded contracts, particularly in healthcare staffing, thereby fostering supplier diversity and advancing equity in the healthcare sector.

In the wake of the COVID-19 pandemic, mental health has emerged as a critical area of concern within the healthcare sector. As healthcare organizations grapple with the economic impact of mental health costs and workforce shortages, the need for reliable staffing solutions has never been more pressing. According to recent data, the annual economic burden of mental and medical healthcare costs combined with lost productivity exceeds a staggering $220 billion in the United States alone. This figure underscores the urgency to address staffing challenges effectively to mitigate further financial strain and ensure quality patient care.

In the world of healthcare, where the lines between day and night often blur, the concept of work-life balance can seem like a distant dream. But as a mental health expert and a leader in healthcare workforce solutions, I understand the impact that a lack of balance can have on both healthcare professionals and the patients they serve. Addressing this issue is imperative and it starts with an awareness of the impact mental health has on our workforce.

The primary concern for organizations globally lies in the realm of workforce challenges, and this is evident across various sectors. Nowhere are these challenges more pronounced than in healthcare, with continuous shortages of providers of all types.

Healthcare organizations of all types of focus on addressing their staffing challenges in many ways, and one area that is of growing focus is physician and provider internal resource pools (IRP), often more generally referred to as “float pools”.

The healthcare industry stands at a pivotal moment in its evolution, particularly in how it approaches staffing. Traditional models, while stable, often lack the flexibility to meet the dynamic demands of modern healthcare environments. Enter the concept of internal gig pools—a revolutionary staffing model that combines the adaptability of gig work with the structure of traditional employment. This model is transforming healthcare staffing, presenting a future where adaptability, efficiency, and employee satisfaction converge. 

The advent of the gig economy has revolutionized the way organizations think about work, offering flexibility and autonomy that traditional employment often lacks. This shift has permeated various industries, with healthcare being no exception. The unique demands and stresses inherent in healthcare make the sector ripe for the benefits the gig economy can offer. Adapting gig economy principles to healthcare staffing strategies presents a forward-thinking approach to addressing some of the most persistent challenges in healthcare delivery and workforce management.

In today's fast-paced healthcare environment, agility is not just a buzzword—it's a critical strategy for success. The ability of healthcare organizations to quickly adapt to changes, whether in patient care demands, technological advancements, or unexpected crises, hinges practical the agility of their workforce. An agile workforce is characterized by flexibility, resilience, and a proactive approach to change. This blog explores effective strategies for creating an agile workforce in healthcare, ensuring organizations can meet the evolving needs of their patients and the industry at large.

One of the most significant challenges that hospitals have faced for years is the shortage of skilled workers. This, in turn, has made recruiting extremely competitive — if hospitals are all vying for the same candidates in the same labor pool, whoever offers the most will win. So, it's no wonder the industry average time to fill positions is 49 days.

Every day, healthcare workers strive to provide the best possible care for patients. However, a growing crisis threatens their well-being and the quality of patient care. Recent research by the University of Pittsburgh School of Social Work reveals startling statistics: 73% of hospital workers who left their jobs cited understaffing as the primary reason, and a staggering 87% reported high levels of burnout.

Even pre-pandemic, the healthcare industry as a whole had staffing shortages. But the past few years have exacerbated such pre-existing issues, often to the point where organizations of all sizes began pivoting and re-examining their hiring and employee retention practices. This has been particularly true when hiring nurses.

For the past few years, already-existing labor shortages in the healthcare space have been exacerbated by the pandemic, thus shifting the way facilities operate. Pre-pandemic, there were already ongoing discussions about nursing shortages. In its current state, industry projections state that shortages are slated to last until 2030, with a total supply of nurses decreasing by ~100,000 from 2020 to 2021, the largest drop in four decades.

Recent years have seen the healthcare industry battling increasing obstacles, but according to multiple surveys and polls, from ACHE and MGMA respectively, staffing shortages remain the top concern of healthcare leaders. While staffing shortages have long plagued the industry, the rapidly rising agency rates for contract nurses and other staff are no longer sustainable for many organizations.

It's no secret that healthcare organizations have had the need for quick, efficient staffing solutions, even before the pandemic started. While coronavirus certainly put extra strain on these systems as well — between the "Great Resignation", unprecedented rates of burnout, and more — healthcare organizations have been struggling to attract and retain the talent that they need to provide quality patient care and improve patient outcomes, including in pediatrics. In fact, nationally, around 80% of pediatric hospital beds were occupied as of late October 2022.

The Situation

Upstate New York healthcare systems were no exception to the staffing crisis felt by virtually every hospital in the country amidst the onset of the COVID-19 Pandemic. The recent 2022 NSI National Healthcare Retention & RN Staffing Report revealed that the average hospital turnover rate was 25.9% in 2021 – a 6.4% increase over the prior year. Pre-Pandemic, many hospitals relied on traditional staffing agencies to fill their vacancies. By the summer of 2020, reliance had turned into dependence, and there seemed to be no end in sight. Particularly in the more rural areas, hospital executives were faced with the most difficult decisions they could possibly imagine- would they be able to meet the financial demand for contingent labor, with hourly bill rate increases of 100 to 200% or would they inevitably be forced to close their doors on the communities that needed them now more than ever?  

From the moment the World Health Organization (WHO) issued a global health emergency to the conclusion of 2020 surpassing 20 million infections nationwide, healthcare workers have been stretched to the max. In the climate of panic and fear that characterized the early days of the pandemic, defining a workable strategy to deliver thousands of providers was anything but simple.