Post on 17-Mar-2018
Implementing an Effective
Change Management Strategy
to Optimize Your Workforce
and Drive Savings
Session ID: 147
The Current State of Healthcare
Average Vacancy Rate
7.2%
Average Time to fill a Vacancy
85 Days
Average Turnover Rate
17.2% (CNA: 23%)
Average cost of Turnover (Bedside RN)
$57,300
(it’s not great)
Learning Objectives
• Identify the labor management challenges
most common at a large health system.
• Discover the management competencies
that are essential to create a culture that
embraces change.
• Learn the fundamental components of an
enterprise-wide workforce optimization
strategy.
About Mercy
• 5th Largest Catholic healthcare system in
the United States
• 36 hospitals; over 700 clinics & outpatient
facilities
• 11 Specialty Hospitals (Rehab,
Orthopedic, Heart, Children’s)
• 40,000 co-workers and over 2,100
physicians
• Service Area: Arkansas, Kansas,
Missouri, Oklahoma
• Outreach Ministries: Louisiana,
Mississippi, Texas
• Twentieth largest non-profit health care
system in the U.S.
Challenges
• Believe it or not, OKC is one of the most
competitive healthcare markets in the U.S.
• Economy, Thunder, Oil & Gas, rural state, &
wild wild west…Boom or Bust!!!
• Increased Overtime & Use of Core Staff as
Contingent Labor
• Staff not working to their FTE commitment -
Leakage
• No focus on incidental worked time above a
scheduled shift
• Local Market contracting directly with
Nurses at $50 - $60 per hour for 13 weeks
• Turnover Increased from 19% to 24% as
high as 40% in some areas
• Open Positions 650 plus & Vacancy Rate
Increased 11%
Planning for Success
• Year 1: Realigning resources
and standardizing processes
• Year 2: Focused attention to
advance strategies
• Year 3: Establishing a
sustainable environment
• Ultimately Regional Resource
Center for West
• Self Actualized from Workforce
Perspective
Enterprise Strategy
• Business Intelligence
• Core Staff Strategies
• Flexible Staff Strategies
• Enterprise Deployment
• Optimization / Predictive Modeling
Embracing Significant Change
Core to leading any significant change effort is
Organizational Alignment.
There is no substitute for having an entire
organization that has:
• Clear vision of goals
• Shared responsibility
• Personal accountability
Decisions Implemented Without Veto
“I don’t agree with
the changes
either…”
“My unit is
special, we’ll do
our own thing…”
“The ministry says
we have to…”
Success to Date
• Weekend 35% reduction in absence calls
• Contingency consolidation of PRN to float
pool
• Open shift incentive adoption
• Developing optimal core staffing levels
Success to Date: Vacancy Rate
5.1% 5.2% 5.3%
7.0%6.5%
5.2%5.8% 5.6% 5.5%
7.9% 8.1% 8.3%
10.3%
9.3% 9.3%
8.2% 8.1% 8.1%
Replacement Vacancy Rate Replacement Vacancy Rate Goal Total Vacancy Rate Total Vacancy Rate Goal
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
Strategy
Progress
Success to Date: Recruiting & Branding
• Use online recruitment to promote the brand
• Utilize job boards and aggregators to drive
candidates to Mercy.net
• More attractive job postings (not descriptions)
• Social Media
• Implemented new applicant tracking system
• 40% increase in traffic in last 60 days
(Indeed/Simply Hired)
• Vacancy Rate reduced to 8.2%
• Turnover in OKC reduced from 24% to 18%
• Partnership with Nursing and Bayard to draft
posting (in progress)
• Expanding presence on Facebook, YouTube, etc.
Success to Date: Talent Journey
Strategy
• Continue to hire for Talent, Mercy, and
Criteria Fit
• Nurse Talent Center of Excellence
• Hire Nurse Talent Scout
• Lead OKC & West in Nurse Recruitment
& Retention
• Boomerang Nurse Hiring
• Revised Talent Plus Assessment
• New Leader Orientation 2-day immersion
• Nurse Leader Training-in Process
• RN Interview Guide
• 6% Market Adjustment
• Implemented Track 1.05 Program
Progress
Persistent Challenges
• Resource constraints
• Reimbursement Changes (volume to value)
• Surging patient volumes
Future State
• Integration about aligning parts
• Software automation with standardization
on progress and application
• High performing centralized &
regionalized resource management
center
• Enterprise float pool model for West,
Mercy, & Beyond…
Takeaways
• Labor optimization deserves to be a
strategic initiative
• Change is not going to be easy
• Culture is the most important element of
any initiative