Health systems are continuing to face extreme challenges. These include staffing shortages, operational complexities and margin pressures. In this environment, health systems often look to technology solutions to automate and improve efficiency. However, at times technology can add to an organization's challenges since attempting to deal with disparate point solutions can create more work and stress for burned-out staff, without resolving margin pressures.
At Becker's Hospital Review's 13th Annual Meeting, symplr sponsored an executive roundtable to explore how hospitals are working to deal with their persistent financial and operational challenges, with a particular focus on the importance of technology and partnerships. Nicole Rogas, symplr's president, discussed recent survey results about the challenges that health systems are facing and invited input from roundtable participants.
Three key takeaways were:
1. Major financial challenges persist — and are driving all actions and decisions in hospitals and health systems. A recent symplr survey found that 53 percent of hospitals expect to have negative margins this year and those that don't have negative margins have very modest positive margins. It's no surprise that this survey found that financial pressures are the top threat and the top priority for healthcare organization in 2023. Ms. Rogas frequently hears from customers that "the cost of doing our work is higher than our revenue." Roundtable participants agreed and mentioned that ROI is now a critical component in every decision.
Part of the reason for these financial pressures is that because of staffing shortages, the majority of hospitals are running at less than full capacity, since they don't have the staff to be able to schedule the number of procedures that are being demanded. Less staff and fewer procedures mean less revenue.
2. Hospitals are taking creative approaches to recruit staff. Even with investments in technology, healthcare is fundamentally a people business as people drive everything. Since people are so important and since most organizations are experiencing staffing shortages — for clinical and other positions — virtually all healthcare leaders are focused on finding and retaining staff.
One leader from a non-profit health system in the Midwest with 26 hospitals is successfully recruiting retired nurses. These part-time workers — who often work four-hour shifts — assist with triage and other tasks, freeing up full-time staff. Perhaps somewhat surprisingly, the interest among retired nurses who are invited back to the workforce is high: for every five retirees the organization contacts, two or three express interest. These experienced nurses are willing to work at normal market rates — not the excessively high travel nursing rates — and don't require benefits.
A leader from another hospital mentioned a creative approach of recruiting students and bringing in individuals early in their career. These unique hires help increase staffing levels, and as several participants mentioned, help sustain the future of healthcare by bringing a new generation into the industry.
Not only are leaders showing creativity in who they are recruiting, but also in how they are recruiting and supporting employees. For example, roundtable participants mentioned using technology-based tools to support recruiting as well as using technology systems to support the physician credentialing process.
3. Top-performing organizations go beyond just surviving; they are intent on thriving. Rogas constantly hears from customers how crazy and challenging the environment is. But she asks, "Are you surviving during this crazy time? Or, are you thriving?" Based on speaking with leaders from numerous hospitals and health systems across the country, she has seen that thriving is possible. A key part of thriving is forming a true IT partnership that provides support through thick and thin. One underlying cause of the increased costs in healthcare — and of increased burnout among staff — is the presence of disparate point solutions that aren't interoperable and don't work together. In symplr's survey, almost all CIOs agreed that "working with disparate IT systems and applications complicates my job."
Technology leaders within health systems need a vendor partner who can help them address this issue of disparate systems and applications — and can help them work through all known and unanticipated issues. Software alone, including the best platforms in the industry, is not enough. Health systems need partners who will listen, observe, educate, consult, bring expertise and solutions, share in the risk and be there at all times, through the high and the low. The importance of a trusted partner was emphasized by one CIO who said, "We will go with a current vendor that we know and have a partnership with for 80 percent of the feature functionality versus a new vendor that has 90 percent."
Although the current healthcare environment is extremely challenging, it's important for leaders to remember that key innovations and operational improvements often emerge during downturns, when leaders are forced to be more nimble and resourceful and to find partners who can truly meet their needs. This is how organizations don't just survive but they thrive.