<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=353110511707231&amp;ev=PageView&amp;noscript=1">

Healthcare Financial Pressures Make Successful Hiring Systems an Imperative, Not a Luxury

August 4, 2011
Healthcare providers are already feeling the pressure of increasing costs and declining reimbursements.  We are seeking ways to do more with less.  Unlike other industries, though, in healthcare we can’t simply cut staff, cut costs and perhaps even skimp on quality to get by.  At the same time that our resources are being limited, the quality bar is being raised.

Just in the past week there was news that:
  1. Skilled nursing facilities can expect significant Medicare cuts.
  2. The powers that be are working on the “hospital readmission rules.”  These will define in what situations a hospital must treat a patient’s complications, but won’t be paid for that treatment; and
  3. Congress’ much publicized debt-ceiling deal could lead to further cuts to Medicare and Medicaid payments.
  4. And we already know that programs like HCAHPS are tying reimbursement to outcomes including patient satisfaction scores.  What does all of this mean for the hiring process?
  5. High turnover – a constant challenge for human resources, is simply unacceptable.  It makes it more difficult to provide high quality care and it is a huge financial drain.  Moderate reductions in turnover can save millions of dollars
  6. Quality is king, but processes and technology only get you so far.  You need a hiring process that increases the likelihood that every person you bring into your organization has the requisite  behavioral skills -  to provide truly patient and family centered care, to follow important procedures, every time, to collaborate, and to find innovative solutions.
  7. Risk management is critical.  Employment discrimination suits are on the rise and the EEOC and OFCCP are more aggressive than ever.  How would your current process survive such scrutiny?  Have you calculated the potential costs of a challenge?
  8. We can no longer rely on the traditional, and often ineffective, methods of identifying, developing and hiring managers and senior leaders.

The changes will continue to come, fast and furious.  The pressure will increase.  It’s time that human resources is seen not as an administrative function but as a central strategy in facing these challenges.

Bryan Warren Bryan Warren was the former Director of Healthcare Solutions at PSI. He was responsible for developing and promoting tools and services designed specifically for the unique challenges faced by healthcare organizations.