Current Healthcare Battles: Adequate Staffing and Cost of Care

Before the COVID-19 pandemic, patient numbers were relatively predictable, allowing for easier staffing decisions. There were also fewer cases of burnout and lower turnover numbers. However, data from 2023 and 2024 reveals two major issues that remain: The need to ensure adequate staffing and the need to control the cost of care.

This blog takes a look at both issues and offers possible solutions and information on what some medical facilities are currently trying as they meet the situation head-on.

In their efforts to provide excellent patient care, healthcare organizations are exploring various approaches, including utilizing temporary nursing staff. Top hospitals and health systems have discovered that these professionals not only help optimize revenue and ease staff fatigue but also offer a valuable pool of potential full-time hires.

A traditional staffing or temp agency won’t work because hospitals and healthcare systems need specialized solutions to address complex challenges. Now, there are companies in this market sector designed to offer services that help improve patient flow by addressing issues like bed and staffing shortages, both of which can hinder patient care.

These healthcare-adjacent companies partner with hospitals to find the right balance between full-time and contingent staff, leveraging insights from across their brands to provide broader perspectives beyond local experiences.

Read More: “Navigating the ‘New Normal’ of Healthcare Staffing” by Becker’s Healthcare & Ingenovis Health

Looking ahead, healthcare leaders must anticipate changes in care models and create environments that attract talent. With the potential decline in the number of registered nurses (RNs), hospitals may need to incorporate other team members, such as CNAs and patient care techs, to maintain proper care delivery. Additionally, healthcare facilities must adapt to the needs of a changing workforce, recognizing that nurses from different generations may have varying preferences, such as avoiding 12-hour shifts.

Are Temporary Nurses More Expensive Than Full-Time Staff?

Healthcare leaders are facing a new reality when it comes to staffing. Hospitals and healthcare systems must now tackle the challenge of maintaining the right staffing levels — at the right time — all while managing costs.

To meet patient care needs, some hospitals are relying on mandatory overtime, which is putting extra pressure on already overworked clinical teams. This approach can backfire, leading to employee dissatisfaction and higher turnover rates. Hospitals should monitor key metrics such as overtime, turnover, and vacant positions. High overtime may be a red flag, signaling the need for temporary staff to prevent burnout and maintain smooth operations in the long run.

Read More: “Are Your Nurses Leaving by the Droves? (Or wanting to?)”

There’s also a common belief that temporary nurses are more expensive than full-time staff. However, this “apples-to-apples” comparison overlooks hidden costs associated with full-time employees, such as recruitment expenses, sign-on bonuses, and reduced productivity during training. When these factors are taken into account, temporary nurses can sometimes be a more cost-effective option.

Another challenge is turnover among full-time employees, particularly newer nurses. Research shows that nearly 50% of newly licensed nurses leave their hospital positions within three years. In 2023, the cost of replacing a full-time registered nurse ranged from $45,000 to $67,000 per nurse.

Suggestions for Balancing Healthcare Staffing Needs and Cost Control

Even though healthcare systems are adopting various strategies to address staffing shortages, the balance between effectiveness and cost control is complex. Here are five strategies to balance necessary staffing with the need to control costs.

1. 1. Increased Use of Travel Nurses and Temporary Staff: Many hospitals and healthcare systems are hiring travel nurses, locum tenens physicians, and other temporary staff to fill gaps. This can quickly address shortages but may come at a higher cost. While this route helps maintain staffing levels short-term, it’s not typically sustainable long-term due to increased operational expenses.
2. 2. Upskilling and Cross-Training Current Employees: Healthcare systems are investing in upskilling programs, enabling staff to perform multiple roles, such as training nurses to handle more administrative tasks or operate in different departments. This can help cover gaps and improve staff flexibility, but it might affect morale or lead to burnout. On the positive side, while there is an upfront investment in training, this option can be cost-effective in the long run as it improves workforce efficiency.
3. 3. Telemedicine and Remote Care Expansion: The use of telemedicine allows healthcare providers to manage patient loads more efficiently, reducing the need for in-person staffing. It also enables specialists to consult from different locations, increasing their reach. This option reduces the pressure on in-person staff while improving efficiency and patient access. It can even reduce operational costs over time, but initial setup (technology, training, etc.) can be expensive.
4. 4. Retention Programs and Mental Health Support: Hospitals are offering better retention programs, including mental health support, wellness programs, flexible schedules, and financial incentives like loan repayment plans. These aim to reduce burnout and turnover, keeping existing staff in place. These initiatives might increase upfront costs, but they may save on the expenses associated with recruitment and turnover.

Read More: “Ergonomics & Economics: How to Increase Job Satisfaction And Improve the Bottom Line”

5. 5. Foreign Recruitment and Immigration Sponsorship: Healthcare systems are increasingly recruiting internationally to fill nursing and physician shortages. Some hospitals sponsor visas for international healthcare workers. This approach can help provide a steady pipeline of skilled workers. Sponsorship and relocation can be expensive, but over time, it may be more cost-effective than relying on temporary staff. While some of these solutions help mitigate staffing issues, they often come at a cost, particularly in the short term. Solutions like upskilling, retention programs, and telemedicine may offer longer-term savings, but strategies like using travel nurses or international recruitment are typically more expensive. The overall trend indicates that addressing staffing shortages often requires a trade-off with rising costs, though some approaches are more sustainable in the long run.

Champion Chairs Can Help in the Budget Battle

At Champion, we recognize that the healthcare landscape is ever-changing, and we pride ourselves on staying current and remaining relevant. We research cutting-edge technologies, healthcare design trends, and engineering best practices to create comfortable, safe, and supremely functional products.

We also understand that decision-makers must limit costs, so we offer a range of medical seating to meet various budgets. The medical chairs in Champion’s Premier Collection and Select Collection are all patient-first and provider-first, meeting the needs of a wide range of facilities and clinical applications.

To view our entire portfolio of medical seating, fabrics, and accessories, browse our digital catalog. Then, request a quote for your facility today.