Dramatically Improving the Hospital's Bottom Line Through Effective Labor Management
Overview:
Labor is the costliest expense for any hospital. According to national benchmarking statistics, a leading metric indicates that 50% of not-for-profits spend slightly more than 50% of their total revenues on labor. By itself, this means nothing. But compared to some for-profit systems, the not-for-profits are spending 20% more on labor.
That is an astounding difference and represents a significant competitive disadvantage.
How is it possible that some hospitals can spend significantly less than other hospitals when they are doing essentially the same jobs and they have essentially the same or better clinical outcomes? This class is designed to present ways in which every hospital can design labor processes to improve their labor costs without sacrificing quality. Case studies will be presented that will highlight the areas that can be addressed to dramatically improve the labor cost outcomes without sacrificing quality or satisfaction.
Why should you attend:
With the advent of some revenue reduction elements of the Healthcare Reform Act (also known as the PPACA), hospital will need to continue to their cost reduction efforts in order to keep or improve their current bottom lines. The main areas for cost reductions are labor, supply chain, and to some extent, capital purchases.
In the labor area, there are many cost saving opportunities that are not always utilized by hospital leadership. Some of these opportunities are easy to implement, some are not-so-easy, but still need to be used for better financial outcomes. This class will highlight several of the labor opportunities that hospital leadership can turn on immediately if they so choose.
Areas Covered in the Session:
In this class, the participants will learn to:
- Recognize the importance of utilizing the "labor ratio" to set labor goals
- Determine the best practices in labor productivity and labor management in the healthcare industry
- Understand the differences between labor "rate" variances and "efficiency" variances and how they can be used to significantly improve the use of labor to meet organizational goals
Who Will Benefit:
- HospitalCEOs
- HospitalCOOs
- HospitalCFOs