Week 1 Assignment: The Cost of the Healthcare Workforce
As the health care industry continues to evolve towards a more technological approach, health care providers and healthcare organizations, are seeing an increase in internal and external challenges. One of the major challenges that health care organizations, such as hospitals, are currently facing is related to the cost of their health care workforce. According to CHWS (2021), “The health workforce refers to all of the people who deliver or assist in the delivery of health services, or help operate health care facilities.” Although all medical personnel are deemed an essential part of a hospital’s success, financial hiccups have hindered the progression of medical professionals, from flourishing within the industry.
Key Drivers of Labor Costs
The primary reason for this dilemma, stems from increased labor costs, that have plagued the health care industry, as of late. Three key drivers of labor costs within health care organizations such as hospitals, are an increase in quality requirements, consumerism, and an aging patient population (Daly, 2019). These drivers have forced health care administrators to enact strategic plans, that specifically look to incorporate elements of organizational change, within their facilities. Over the past decade, the medical field has shifted its traditional semantics and delved into the realm, of implementing continuous quality improvements by adopting innovative technological advancements that will lead to major changes, in the healthcare landscape. These improvements allow better management of big patient data, by allowing the use of EHR’s, IT initiatives, and Artificial Intelligence. Investing in these quality improvements, will improve patient outcomes, but it also drives labor costs, to an extreme. Consumerism, also plays a major role, in driving labor costs. Health care facilities must find ways to engage consumers and ensure the patient experience is elite, in an attempt to maintain their business. Consumers have the ability to make or break an organization, which is why consumerism has caused labor costs, to rise. Another key component of rising labor costs, is the aging patient population. Those who are in this age demographic, are faced with various health ailments, that require an increase in service demand. This causes a rapid need for an experienced medical personnel workforce (Daly, 2019).
Solutions to Effectively Mitigate Costs
These challenges have led medical industry insiders to evaluate solutions and remediation activities, to address the identified labor costs, accumulated within hospitals. According to LaPointe (2018), “Hospitals and health systems are under immense pressure to improve efficiency and reduce their healthcare costs as payers decrease claims reimbursement rates and hospital consolidation continues to grow.” Viable solutions found to effectively mitigate labor costs within hospitals are increasing the role of automation (which will decrease errors and enforce risk management concepts, that will lead quality improvements), improve the retention of clinical staff, outsource medical coding, and initiating other cost-cutting expenses that will address consumerism concerns, the tightening labor market, and the health of the aging population.
Accelerating the Solutions
These cost cutting initiatives, can provide much needed relief, for an oversaturated health care market. However, future changes to accelerate these solutions, must be spearheaded by policy funding initiatives. Currently, there are some regulatory statutes in place, that evaluate policies aiming to reduce cost by influencing market conduct primarily focused on the effects of competition, payment reform and care coordination. (Stahdouders, 2019). Future policy funding changes that must be enacted, to alleviate the stressors of an everchanging health care industry, must include addendums to effectively mitigate costs. Mitigating costs, without alienating the consumer base and employees within the medical field are the key concepts that must be evaluated, to accelerate the solutions and withstand exacerbation of all other resources.
Conclusion
The medical field, is a lucrative industry, that continues to propose ways to improve its overall function. Strengthening the health care workforce, is always on the forefront of concern. However, with the industry adapting to a new digital footprint, the health care workforce is put at a disadvantage. Finding ways to effectively mitigate costs and streamline production, are key concepts that must be addressed, to save health care jobs and strengthen the workforce.
References
CHWS. (2021). What is the Health Workforce?. What is the Health Workforce? | Center for Health Workforce Studies
Daly, R. (2019). Hospitals innovate to control labor costs. Hospitals innovate to control labor costs
LaPointe, J. (2018). Hospitals Target Labor Costs, Layoffs to Reduce Healthcare Costs. Hospitals Target Labor Costs, Layoffs to Reduce Healthcare Costs
Niek Stadhouders, Florien Kruse, Marit Tanke, Xander Koolman, Patrick Jeurissen, Effective healthcare cost-containment policies: A systematic review, Health Policy, Volume 123, Issue 1, 2019, Pages 71-79, ISSN 0168-8510, Redirecting. (Effective healthcare cost-containment policies: A systematic review - ScienceDirect)
As the health care industry continues to evolve towards a more technological approach, health care providers and healthcare organizations, are seeing an increase in internal and external challenges. One of the major challenges that health care organizations, such as hospitals, are currently facing is related to the cost of their health care workforce. According to CHWS (2021), “The health workforce refers to all of the people who deliver or assist in the delivery of health services, or help operate health care facilities.” Although all medical personnel are deemed an essential part of a hospital’s success, financial hiccups have hindered the progression of medical professionals, from flourishing within the industry.
Key Drivers of Labor Costs
The primary reason for this dilemma, stems from increased labor costs, that have plagued the health care industry, as of late. Three key drivers of labor costs within health care organizations such as hospitals, are an increase in quality requirements, consumerism, and an aging patient population (Daly, 2019). These drivers have forced health care administrators to enact strategic plans, that specifically look to incorporate elements of organizational change, within their facilities. Over the past decade, the medical field has shifted its traditional semantics and delved into the realm, of implementing continuous quality improvements by adopting innovative technological advancements that will lead to major changes, in the healthcare landscape. These improvements allow better management of big patient data, by allowing the use of EHR’s, IT initiatives, and Artificial Intelligence. Investing in these quality improvements, will improve patient outcomes, but it also drives labor costs, to an extreme. Consumerism, also plays a major role, in driving labor costs. Health care facilities must find ways to engage consumers and ensure the patient experience is elite, in an attempt to maintain their business. Consumers have the ability to make or break an organization, which is why consumerism has caused labor costs, to rise. Another key component of rising labor costs, is the aging patient population. Those who are in this age demographic, are faced with various health ailments, that require an increase in service demand. This causes a rapid need for an experienced medical personnel workforce (Daly, 2019).
Solutions to Effectively Mitigate Costs
These challenges have led medical industry insiders to evaluate solutions and remediation activities, to address the identified labor costs, accumulated within hospitals. According to LaPointe (2018), “Hospitals and health systems are under immense pressure to improve efficiency and reduce their healthcare costs as payers decrease claims reimbursement rates and hospital consolidation continues to grow.” Viable solutions found to effectively mitigate labor costs within hospitals are increasing the role of automation (which will decrease errors and enforce risk management concepts, that will lead quality improvements), improve the retention of clinical staff, outsource medical coding, and initiating other cost-cutting expenses that will address consumerism concerns, the tightening labor market, and the health of the aging population.
Accelerating the Solutions
These cost cutting initiatives, can provide much needed relief, for an oversaturated health care market. However, future changes to accelerate these solutions, must be spearheaded by policy funding initiatives. Currently, there are some regulatory statutes in place, that evaluate policies aiming to reduce cost by influencing market conduct primarily focused on the effects of competition, payment reform and care coordination. (Stahdouders, 2019). Future policy funding changes that must be enacted, to alleviate the stressors of an everchanging health care industry, must include addendums to effectively mitigate costs. Mitigating costs, without alienating the consumer base and employees within the medical field are the key concepts that must be evaluated, to accelerate the solutions and withstand exacerbation of all other resources.
Conclusion
The medical field, is a lucrative industry, that continues to propose ways to improve its overall function. Strengthening the health care workforce, is always on the forefront of concern. However, with the industry adapting to a new digital footprint, the health care workforce is put at a disadvantage. Finding ways to effectively mitigate costs and streamline production, are key concepts that must be addressed, to save health care jobs and strengthen the workforce.
References
CHWS. (2021). What is the Health Workforce?. What is the Health Workforce? | Center for Health Workforce Studies
Daly, R. (2019). Hospitals innovate to control labor costs. Hospitals innovate to control labor costs
LaPointe, J. (2018). Hospitals Target Labor Costs, Layoffs to Reduce Healthcare Costs. Hospitals Target Labor Costs, Layoffs to Reduce Healthcare Costs
Niek Stadhouders, Florien Kruse, Marit Tanke, Xander Koolman, Patrick Jeurissen, Effective healthcare cost-containment policies: A systematic review, Health Policy, Volume 123, Issue 1, 2019, Pages 71-79, ISSN 0168-8510, Redirecting. (Effective healthcare cost-containment policies: A systematic review - ScienceDirect)