As "value-driven healthcare" becomes more important, hospitals will face increasing pressure to simultaneously reduce costs while improving quality of care.
Most healthcare organizations attempt to manage their labor costs with a simple productivity metric that measures hours worked to fluctuating patient census or other unit of volume. But that approach doesn’t provide managers with critical information about the costs and quality-of-care implications related to workers’ skill level, source of labor, and use of nonproductive time.
Download this white paper to learn how you can incorporate the following four strategies into your labor management process and significantly reduce labor costs without jeopardizing quality of care:
1) Use Net Cost Variances to Drive Authorized FTEs by Skill
2) Manage Supplemental Labor
3) Control Distribution of Nonproductive Time Throughout the Year
4) Monitor Rate and Efficiency Variances