Business-Minded Legal Solutions

What effect will nurse shortages have on hospital profits?

It is no secret that the medical industry is extremely busy and seeing a significant labor shortage. While this is a historic moment, eventually, when pandemic hospitalizations slow, there may be a reckoning for medical industries over staffing.

Handling future staffing problems

Throughout the pandemic, nurses from across the country have left their stable jobs to become traveling nurses. This status is highly lucrative for the individual nurse, but it does cost the provider more to employ an entire staff. Now, the healthcare industry is in a bind and must use this labor source. Eventually, medical providers will shift to a new staffing strategy with long-term goals.

The time to plan for that future is now, by considering several contractual possibilities such as:

  • Higher retirement matches
  • Better healthcare benefits
  • Career counseling for advancement
  • Greater bonuses
  • Higher base rate salaries

While on the surface, these may not seem like cost-saving initiatives, but the trick is to retain staff for the future. The hope is to build loyalty in your staff. These measures aim to create a respectful workplace, which can lead to a great deal of retention.

Retention is a cost-saving measure

Even experienced candidates need training on your medical facility’s procedures. Even something as simple as storage methods takes time to learn. Onboarding costs are unavoidable, but any step you take to minimize such expenses is a wise choice.

Furthermore, by building an attractive standard employment contract, you may be able to retain greater control over your workforce level. No matter what happens, the next few years will prove to be a crucial period for all industries in terms of employee compensation. How your company works through these vital matters will have a long-term impact on your business’ profitability.

Archives