Staffing shortages, rising costs, compliance complexities, and more have been some of the most common challenges in the healthcare space for the past few years. Legacy systems and medical devices also pose cybersecurity risks that are often overlooked. Outdated staffing protocols foster inefficiency and lost revenue.
Despite these hurdles, the future of our industry is bright. Around 60% of industry leaders have a favorable outlook for the coming year, with rising revenue and expected profitability. This is in no small part thanks to the technological advancements that are continually built to address these challenges and more. Leveraging these systems is the key to success in 2025 and beyond; and one of the most significant costs healthcare organizations face is within their staffing models.
So let's dig into some of these challenges and find out how you can utilize technology in your healthcare workforce management to contain costs and have a profitable 2025.
Recent Healthcare Staffing Trends
Let's begin by analyzing some of the recent trends in staffing:
Increasing demand for healthcare workers
More recently, there has been increasing demand for healthcare workers generally. There are multiple reasons for this. For one, the baby boomer generation are now aging, causing massive influxes of patient volume for general healthcare. This aptly named 'Baby Boomer Effect' has two key impacts on the healthcare industry: around 69.7 million are expected to become eligible for Medicare by 2030, and Medicare's annual acute care costs are forecasted to rise to $259 billion in that time.
Couple this with the fact that chronic diseases are on the rise, affecting more than 129 million Americans. Additionally, the pandemic had lasting effects on how hospitals recruit talent. It highlighted the importance of having a more robust workforce to accommodate unexpected influxes, rather than keeping minimal staff on hand.
Staffing shortages
Meanwhile, portions of the industry have struggled to rebuild themselves in a post-pandemic era. According to Becker's Hospital Review, by the year 2030, we'll see a deficit of around 63,000 nurses.
Recently, companies have been trying to mitigate these staffing shortages by improving their offerings (benefits, competitive wages, etc.) and reworking their recruiting methods, often finding success on a case by case basis. Nevertheless, high turnover rates, burnout, difficulty recruiting specialized physicians, financial constraints, and geographic disparities still persist.
Shift towards flexible staffing models
We've said it before and we'll say it again — contingent labor has been on the rise and it's not going to stop anytime soon. A recent survey concluded that around 60% of participating hospitals' expenses were labor exclusive.
Key Technology Advances Transforming Healthcare Workforce Management
Artificial Intelligence (AI) and Predictive Analytics
AI has taken the globe by storm, becoming an adaptive and critical tool regardless of industry. But is AI more A than I? In some cases, yes, but it's also proven to be a game changer for hospitals. So much so that in a healthcare survey conducted by Deloitte, 43% of respondents said they expect to strengthen their core business technologies, which includes AI. AI has already proven to be a useful tool in hospital settings, with Deloitte asserting that it is possible to free up to 50% of time for revenue cycle professionals and up to 20% for bedside nurses using this and other technologies.
Workforce Management Platforms and Tools
More and more companies are adopting integrated tools such as Vendor Management Systems (VMS) and Managed Service Providers (MSP) for their end-to-end workforce management strategies. These systems help streamline recruitment, onboarding, compliance management, individual worker performance, interviewing and screening, and more.
These workforce solutions have been adopted in a number of different industries, but healthcare specifically is playing catch-up.
But those who have already adopted these solutions have seen stark differences. VMS platforms such as HWL’s standardize contingent workforce management across the entire organization in order to maximize cost savings and keep a centralized database for all details pertaining to workers. Custom workflows, real-time data dashboards, electronic timekeeping, and more have proven to be vital in saving time and money for healthcare organizations if they expect to contain costs over time.
Mobile Technology for Staffing
Gone are the days of paper calendars and manual shift scheduling. Today's workforce expects all things digital for convenience and organization. This is especially true for companies that need elevated management of contingent labor. Mobile apps should handle myriad tasks, including but not limited to:
- Broadcasting open shifts
- Allowing workers to accept shifts
- Messaging and communication capabilities
- Real-time updates
- Timekeeping
- Analytics capabilities
This allows for more accessibility and flexibility for all staff types and gives them more autonomy over their lives — one of the top needs that arose during the pandemic and continues to this day.
HWL Ensures You can Improve the Future of Workforce Management in Healthcare
Predicted advancements in AI, machine learning, and other technology are expected to help bridge skill gaps and address staffing shortages in 2025. It's high time to embrace innovative technologies, lest you get left behind; and HWL can be your partner every step of the way.
From our MSP, VMS, EOR payroll services, internal agency services, and more, we'll help shape your staffing policies for future success.
Learn more by getting in touch today!