HWL Insights

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.