Article: The Cost of the Health Care Workforce
Introduction
There are many drivers that contribute to the rising cost of the health care workforce across the board. Notable contributors are cultural demands and changes, demonstrated compliance, training and certifications, regulation changes, increase in compensation and newly developed technology. This article will focus on the drivers specifically in nursing, the registered nurse. Nursing is a very demanding yet essential service in health care. In my opinion, nurses are the nucleus to caring for patients in both in and outpatient settings such as the physician’s offices, hospitals, skilled nursing facilities, and nursing homes to name a few. Registered nurses are responsible for coordinating detailed patient care, patient education, and support. According to Office of Occupational Statistics and Employment Projections (2017), “An entry level RN with little to no experience has a median pay of $68,450 which is $32.91 per hour. Also, the number of jobs were 2,955,200 with a projected increase of registered nurses of 15% from the year 2016 to 2026”.
Labor Cost Drivers
Three drivers of labor costs within the nursing field, specifically registered nurses, are use of technology, formal nurse education of new regulations, laws, and standards as well as hands on training. First, nurses need to be educated and trained on newly developed and implemented IT systems in health care such as the electronic health record (EHR). The labor cost can vary depending on how many nurses, physicians and non-clinical staff need to be trained in the practice. According to Health Affairs (2011), “For an average five-physician practice, implementation cost an estimated $162,000, with $85,500 in maintenance expenses during the first year” (para.1). New regulations such as Health Insurance Portability and Accountability Act (HIPAA), Affordable Care Act (ACA), and the FDA Safety and Innovation Act. Finally, additional labor costs related to the implementation are training hours and overtime compensation for the nurses. Not only to they still need to care for patients, they still need to incorporate the time needed to learn the new systems.
Industry Solutions
In conclusion, current industry solutions to address these identified labor costs without interrupting the quality of care provided to patients is the receipt of federal funding to offset hospital expenditures such as ACA, and evaluate labor costs trends monthly to asses what can be reduced. For example, the necessary overtime hours needed to train the nurses versus incorporating the training during their “regular” shift. Labor costs will always be under a necessary component especially in the health care environment with so many different facets. It will always need to be evaluated especially throughout the evolution of health care.
Introduction
There are many drivers that contribute to the rising cost of the health care workforce across the board. Notable contributors are cultural demands and changes, demonstrated compliance, training and certifications, regulation changes, increase in compensation and newly developed technology. This article will focus on the drivers specifically in nursing, the registered nurse. Nursing is a very demanding yet essential service in health care. In my opinion, nurses are the nucleus to caring for patients in both in and outpatient settings such as the physician’s offices, hospitals, skilled nursing facilities, and nursing homes to name a few. Registered nurses are responsible for coordinating detailed patient care, patient education, and support. According to Office of Occupational Statistics and Employment Projections (2017), “An entry level RN with little to no experience has a median pay of $68,450 which is $32.91 per hour. Also, the number of jobs were 2,955,200 with a projected increase of registered nurses of 15% from the year 2016 to 2026”.
Labor Cost Drivers
Three drivers of labor costs within the nursing field, specifically registered nurses, are use of technology, formal nurse education of new regulations, laws, and standards as well as hands on training. First, nurses need to be educated and trained on newly developed and implemented IT systems in health care such as the electronic health record (EHR). The labor cost can vary depending on how many nurses, physicians and non-clinical staff need to be trained in the practice. According to Health Affairs (2011), “For an average five-physician practice, implementation cost an estimated $162,000, with $85,500 in maintenance expenses during the first year” (para.1). New regulations such as Health Insurance Portability and Accountability Act (HIPAA), Affordable Care Act (ACA), and the FDA Safety and Innovation Act. Finally, additional labor costs related to the implementation are training hours and overtime compensation for the nurses. Not only to they still need to care for patients, they still need to incorporate the time needed to learn the new systems.
Industry Solutions
In conclusion, current industry solutions to address these identified labor costs without interrupting the quality of care provided to patients is the receipt of federal funding to offset hospital expenditures such as ACA, and evaluate labor costs trends monthly to asses what can be reduced. For example, the necessary overtime hours needed to train the nurses versus incorporating the training during their “regular” shift. Labor costs will always be under a necessary component especially in the health care environment with so many different facets. It will always need to be evaluated especially throughout the evolution of health care.
