Labor is a top-of-mind issue for most healthcare leaders nationwide.
Many are focusing on long-term strategies like building talent pipelines, as well as shorter-term programs to recruit and retain employees. The reality, however, is that contingent staff will continue to play a role in delivering care at hospitals and health systems.
Becker's Hospital Review recently spoke with Tim Teague, president of BlueSky Synergy, about how technologies like predictive analytics and artificial intelligence can help organizations better anticipate their staffing needs, utilize contingent labor more effectively and reduce staffing costs.
Note: Responses edited for length and clarity.
Question: Contract labor expenses for hospitals and health systems increased 244% between 2019 and 2024. In the aftermath of the pandemic, what notable trends or strategies are you seeing leaders adopt to manage these costs? What's working and what's not?
Tim Teague: The integration of predictive analytics for healthcare staffing can revolutionize how contract labor expenses are managed. By leveraging AI and machine learning algorithms to analyze historic trends and anticipate future census fluctuations, healthcare providers can make more informed decisions regarding staffing levels and utilization of contract labor.
Predictive analytics can help in a number of ways. The first is improved accuracy. By analyzing historical data and continuity of care trends, predictive analytics provide highly accurate projections of future census levels. This allows healthcare providers to better anticipate staffing needs and adjust contract labor accordingly.
Another important benefit is more timely decision-making. Predictive analytics can provide forecasts for the upcoming weeks, allowing healthcare facilities to proactively adjust staffing levels in response to anticipated changes in patient volume. A proactive approach minimizes the need for last-minute adjustments and reduces reliance on expensive short-term contract labor.
Regional considerations also can't be overlooked. As systems evolve, they can incorporate regional factors and health trends into analytics, providing a more nuanced understanding of expected admittances and ER visit. This allows healthcare providers to tailor their staffing strategies to specific regional and demographic demands, optimizing resource allocation.
Cost savings and predictive analytics go hand in hand. By accurately predicting staffing needs and optimizing the most efficient uses of in-house talent and utilization of contract labor, healthcare providers can reduce unnecessary labor expenses, while ensuring adequate staffing levels to maintain quality of care. This results in better quality and improved financial performance for healthcare organizations.
Overall, the integration of predictive analytics for staffing holds tremendous potential for enhancing the management of both internal and contracted labor expenses in the healthcare industry, leading to more efficient resource allocation, improved patient care and cost savings for healthcare providers.
Q: Looking ahead, how do you see contingent labor strategies in healthcare evolving? What can leaders do to prepare?
TT: Continent labor strategies in healthcare are likely to evolve in response to several factors:
- Greater integration of technology like AI and predictive analytics into contingent labor management systems. This will enable more accurate forecasting of staffing needs, improve matching of contingent workers to specific roles and enhance efficiency in managing contingent labor pools.
- Expanded remote work opportunities. As remote work becomes more prevalent, leaders may need to adapt contingent labor strategies to accommodate remote work arrangements. This could involve leveraging telehealth platforms for remote care or utilizing remote staffing solutions for nonclinical roles.
- Increased focus on flexibility and agility. Contract Labor strategies in healthcare must prioritize flexibility and agility in response to changing patient volumes, regulatory requirements and market dynamics. Potential solutions include flexible staffing models, engaging with contingent labor providers that offer scalable solutions and fostering a culture of adaptability.
- Greater emphasis on quality and patient safety. Healthcare leaders may implement rigorous screening and onboarding processes for contingent workers, provide comprehensive training and support and closely monitor performance metrics to ensure compliance with quality standards.
- More strategic partnerships with contingent labor technology providers. These can provide access to specialized talent pools, more favorable contract terms and insights into industry trends.
To prepare for the future, healthcare leaders can take several proactive steps to invest in workforce planning and predictive analytics, while fostering a culture of innovation and adaptability. Learning recruiting lessons from the staffing industry can also provide an excellent template for reaching workers that have become part of the “Gig” economy.
Q: What else would you like our readers to know?
TT: Currently, over 70% of staffing travel nurse staffing placements occur through a managed service provider (MSP). Between 2000 and 2005, MSPs were not affiliated with any staffing firms and provided a pure and transparent market. Today most of these MSP transactions are occurring through an agency-owned MSP. This has raised significant concerns in the staffing industry as many firms believe this has clouded the earlier times of pure transparency and has brought higher prices to the marketplace. Many smaller staffing agencies consider this model to be restrictive and anti-competitive.
Whether MSPs in healthcare staffing are considered anti-competitive depends on factors including market dominance, exclusive contracts, price fixing or collusion, barriers to entry and impact on healthcare quality.
Despite claims of market neutrality and fair pricing, when contract labor spend increases 240 % over 5 years, something doesn’t add up.