Labor Cost Analysis

With the ever worsening economic conditions, the challenges faced by the healthcare industry have become even more pronounced. Understanding and optimizing your labor costs is a strategic priority that needs to be implemented now. At Healthcare Performance Solutions we are experts in performance measurement and much more. Using our proven approach, we help you map and understand the economics of labor. Then we assist you to implement short-term and long-term strategies to optimize costs, maximize productivity, and recapture lost funds. The two areas we concentrate on are outlined below:

Front-line manager performance. A major study we conducted

Over a six-year period concluded that ineffective front-line leadership is ‘the #1 Contributing Factor’ of poor employee engagement, high turnover, inconsistent patient service and low overall performance in healthcare organizations. Our key premise is that the fastest and most effective way to improve performance indicators across the board is to improve the effectiveness of front-line leadership. Our analysis will show the economic impact (i.e., gains and losses) of poor front-line leadership. Perhaps for the first time, you will see how the caliber of your leaders and the mini cultures of excellence or mediocrity they create impacts performance, budget compliance, employee engagement, and the net operating margin. Having quantified the economic impact of poor leadership, we then show you how to achieve the best alignment and probability of success by matching the most effective leadership talent available with the demands of the position (AKA appointing the right people in the right roles).

Pay Practice Audit.

Using deep analytics of your current payroll and pay practices, we help you uncover where pay-related waste is taking place. Our process will identify a) the use of premium pay by type of pay and b) the use of by individual and cost center. You will receive detailed reports that explain what is being used, why it is being used, and more importantly how to sustainably reduce premium pay. One 380-bed hospital that was recently audited showed a staggering $26,000,000 in premium-pay expenses. If they recaptured just 40% of it, they would be able to give every employee a $2/hr. raise and still add $2,000,000 to the net operating margin. Isn’t it time you find out how much wasted money you can recapture?

For a customized proposal, please contact us today.

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LABOR COST ANALYSIS ::