Article Attribution: This is an excerpt from an article on Healthcare Finance
Original Author: Beth Jones Sanborn – Posted August 30, 2018
Majority of execs said they face increases in their labor budgets and staffing shortages are worse this year than last.
According to a joint survey from the Healthcare Financial Management Association and Navigant, healthcare executives are predicting labor budget increases and continued shortages of physicians, nurses and mental health providers. As such, reducing hospital operating expense will be a primary focus over the next year.
HFMA and Navigant surveyed 101 CFOs and operations executives and 78 percent of them said their labor budget would be increasing. Of those, 18 percent are expecting increases of more than 18 percent. A significantly lesser share, 14 percent, are predicting a decrease in their labor budget, but none more than 5 percent.
With widespread labor cost increases on the horizon, it’s logical that when it comes to the top priority areas for reducing operating expenses, labor expenses take the top slot with 44 percent of CFOs and executives surveyed saying it’s their top priority.
Purchased services and supply chain were the next two areas, with 21 percent and 17 percent of respondents naming them their top priorities respectively.
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