Operational Challenges Facing the Healthcare Industry in 2024
The landscape of the healthcare industry is ever-changing. In Fitch Ratings’ 2024 predictions, as the demand for care continues to increase with an aging population, the need to develop qualified talent is also on the rise. With the nursing shortage showing no sign of slowing down, the rising cost to hospitals in providing treatment, and the need for specialized skills in the workforce, how can hospitals address these issues while continuing to provide patient-centered care?
Rising Treatment Costs for Hospitals
As the cost of labor and pharmaceuticals rise with the added pressure of high inflation, hospitals are having to make tough choices on how to address their bottom line. As reported by PwC, the 2024 medical cost trend is projected to hit 7%, increasing for the second year. Changing financial climates require healthcare organizations to examine their operations and assess how to modernize processes. One option for balancing the rising cost of treatment is by investing in onboarding programs to improve the retention of new nurses. Implementing a robust onboarding process develops a system for new hires to quickly become productive in their role. By investing in the incoming RN workforce, healthcare facilities are able to train nurses to their standards to provide consistent care while saving the costly expense of filling vacancy gaps with travel nurses or other temporary labor. With the ability to reduce staffing costs, healthcare facilities can increase their profit margins for 2024.
Fostering a Resilient Workforce
Burnout is one of the biggest factors contributing to the nursing shortage. Found in a study by Dr. Auerbach at Health Affairs, the number of nurses under the age of 35 decreased 4% in 2021 and 15% of nurses planned to leave the profession within their first three years. As RNs early in their career leave the field, facilities are left with a skill gap. In the pursuit of qualified labor, the ability to foster a resilient workforce is needed. Healthcare organizations can address this problem by cultivating an environment that invests in its staff. Providing nurses with career development and mentorship opportunities opens the door for a specialized workforce and boosts morale for long-term retention. Transition-to-practice programs can curb burnout and increase retention by offering structure, support, and a career pathway. As RNs are able to expand their skill set, they are better able to deliver patient-centered care and build confidence in their practice to continue in the field.
Modernization of Nurse Staffing Model
The face of the nursing workforce is constantly changing. In recent years, we have seen the rise of travel nurses, increasing retirement, and a struggling RN retention rate. This means a modernization of how healthcare facilities staff and onboard is needed. Adopting a robust in-house system allows organizations to optimize current and new talent. Integrating in-depth transition training forges a path for skill advancement while cultivating a relationship between healthcare facilities and nurses. By aligning incoming RN graduates with support and training in their first year of employment, their clinical skills can be refined, alongside building confidence in leadership to provide excellent care for tomorrow. Building transition-to-practice programs into a healthcare facility’s staffing model forms a sustainable pipeline of workers to meet increasing healthcare demand.
Conclusion
Although the healthcare industry is ever-evolving, hospitals and other healthcare facilities can continue to meet demand by staying ahead of the curve. Investing in the current and incoming workforce provides a way for organizations to save on costs of labor while developing nurses who provide consistent patient-centered care. Employing in-depth onboarding and training, such as is found in an RN Resident Registered Apprenticeship Program, ensures new hires have honed the skills to be successful healthcare workers and provides them with morale and career development opportunities to see the future of their practice. Resident apprenticeship programs have proven to resolve recruitment problems and improve new graduate RN retention. In a 423 Resident 2023 Spring cohort, the 6-month retention rate is 93%. As it becomes increasingly more difficult for hospitals to maintain profit margins, developing a consistent pipeline of workers through transition-to-practice programs, creates the opportunity to balance costs.
