The Great Resignation continues with millions of Americans quitting their jobs in search of higher wages and better working conditions.
In September alone, 4.4 million employees resigned. Healthcare workers are also seeking greener pastures, with an estimated half a million workers quitting since February 2020, according to the U.S. Bureau of Labor Statistics.
Hospitals and health systems face a crisis as global supply chain constraints and staffing shortages lead to increasing expenses. As the Omicron variant continues to spread, healthcare providers face additional pressure.
Over the past several months, Syntellis has published the Syntellis Performance Trends, a report capturing near real-time data from over 1,000 hospitals and 135,000 healthcare providers nationwide. We can look at labor data from the past several months to anticipate how the Omicron variant could impact health systems and how they can account for the continued staffing shortages.
Lessons from Delta
In summer 2021, COVID-19 cases jumped 1,000% nationwide during July and August, with the Delta variant accounting for 98% of new cases. To inform future potential surges, it’s critical to look at Delta’s impact on hospitals.
Intensive care unit (ICU) volumes picked up as individuals suffered with severe COVID-19 complications. The September Syntellis Performance Trends report revealed that Pediatric ICUs, in particular, saw dramatic volume increases, with Patient Days jumping 35% in August versus pre-pandemic levels. Adult ICUs also saw sharp increases, with Patient Days spiking 19% in August 2021 versus August 2019.
With this rise in Patient Days, hospitals faced significant overtime challenges: Medical ICUs’ national median overtime percentage rose 2.4%; median overtime percentages increased 4.7% in the Great Plains, 4.1% in the South, and 3.7% in the West; southern hospitals had the largest overtime increase at 8.2%.
If Delta’s impact is an indication of what hospitals can expect during future surges, healthcare systems will need to account for increased volumes and staffing challenges.
The Labor Crunch Continues
Following the initial Delta surge, healthcare organizations faced rapidly rising labor expenses as they competed for a shrinking labor pool. As noted in the October Syntellis Performance Trends report, ICUs saw high patient volumes even as overall COVID-19-related hospitalizations tapered, with new COVID-19-related hospital admissions dropping 35% throughout September after spiking more than 500% from mid-June to early September. However, ICU Patient Days increased 27.8% in Medical ICUs, 23.9% in Surgical ICUs, and 17.3% in Pediatric ICUs compared to pre-pandemic levels.
With these numbers, hospitals’ Labor Expense per Adjusted Discharge jumped 20.4% compared to September 2019 despite a 4.6% decrease in hospital staff per patient.
A prime example of the labor shortage impact was in respiratory care departments, where the hourly rate paid for respiratory therapists increased even as volumes recovered. Hourly rate for respiratory therapists rose 10.2% and median Labor Expense per Procedure was 21.9% higher in September 2021 versus September 2019.
In October, Judy Stroot, R.N., BSN, M.A., NEA-BC, managing director at Huron, said, “Organizations are using this time to take a step back and assess their core talent strategy and tactics, with a significant emphasis being placed on introducing innovative solutions to care delivery and re-examining total rewards offerings.”
Healthcare leaders who didn’t do so in the fall should conduct those assessments now and look for innovative solutions to support short- and long-term needs.
With Tight Competition Comes Higher Rates
The November Syntellis Performance Trends report showed rising hourly rates for registered nurses (RNs): +8.8% for Emergency Room RNs, +8.7% for Acute Medical or Surgical RNs, +8.5% for Intermediate Care RNs, and +8% for Intensive Care RNs. Additionally, hourly rates for respiratory therapists increased 11.5% in October compared to 2019, despite slower growth in respiratory procedures. Consequently, Labor Expense per Procedure jumped 27.5% in October compared to October 2019.
Though wages and labor costs climbed as patient demand and staffing levels decreased, competition for talent and stress among healthcare workers remain high. To address the labor shortage, healthcare organizations should look beyond pay by recognizing top performers, and creating a safe environment that encourages individuals to challenge the status quo, think innovatively, and bring new solutions forward.
Planning Ahead
Rising labor expenses challenge an industry already strained by the ongoing pressures of COVID-19. As labor shortages and global supply chain challenges continue, organizations must adapt and find new ways to build financial health and stability.
To face the labor shortage head-on, healthcare leaders need an in-depth understanding of the changes to the financial landscape. As utilized in the Syntellis Performance Trends report and Axiom™ Comparative Analytics, benchmarking data can identify opportunities for improvement and guide recovery efforts. With data-driven insights, healthcare organizations can ensure both exceptional patient care and long-term financial sustainability.
Steve Wasson is General Manager, Data & Intelligence Solutions at Syntellis Performance Solutions, where he directs the data and intelligence strategy and leads the teams overseeing Syntellis’ ever-expanding data footprint. With a focus on innovation, Steve drives how our portfolio and our customers accelerate value through data, artificial intelligence, and machine learning.
Steve has been a central figure in leveraging data as a strategic asset for over 25 years, previously serving as SVP and General Manager, Connected Analytics & Capacity Management at Change Healthcare and Vice President of Clinical Solutions at RelayHealth. He has led businesses through significant transformation and growth while delivering differentiating solutions and has applied the power of data across various sectors, with a primary focus on healthcare technology.
Steve holds a B.S. in Economics from Bloomsburg University of Pennsylvania and an Executive M.B.A. from San Diego State University.