Overview:
Hospitals continue to grapple with persistent staffing shortages, especially in nursing, while continuing to rely on travel nurses to bridge gaps. At the same time, organizations are piloting new models and adopting technology to boost efficiency, control costs, and expand service delivery beyond the hospital walls.
Key Trends and News:
Continued Reliance on Travel Nurses: Hospitals remain heavily dependent on travel nurses despite the post-pandemic downturn, with contract labor spending remaining high. Contributing factors include retirements, burnout, and stricter staffing mandates.
Efforts to Reduce Reliance on Travel Nurses: Health systems are pursuing strategies to cut travel nurse dependence by hiring more permanent staff and testing alternative staffing models, according to Staffing Industry Analysts.
Nursing Shortages Persist: The nursing shortage endures, with a large cohort of nurses nearing retirement in the coming years.
Impact of Staffing Shortages: Gaps in key roles such as billing and coding specialists are affecting revenue cycle management, driving up claim denials and adding financial stress for hospitals.
Adoption of AI and Automation: Hospitals are increasingly leveraging AI and automation to streamline hiring, onboarding, and other operational processes.
Hospital-at-Home Models Evolving: Staffing models for hospital-at-home programs are evolving as these programs expand, presenting new workforce considerations.
Mergers and Acquisitions: Some healthcare staffing firms are acquiring competitors to broaden service offerings and strengthen market position.
Focus on Cost Efficiency: Per diem staffing, technology adoption, and other cost-control measures are being explored to address shortages while managing expenses.
Increased Demand for Specialized Staff: An aging population is driving higher demand for specialized nurses and other medical professionals.
Burnout and Retention: Provider burnout continues to drive turnover and exacerbate staffing shortages, underscoring the need for supportive workforce strategies.
What this means for hospitals:
Balance between cost control and coverage remains critical; innovative staffing models and tech-enabled workflows will be key.
Investment in permanent hiring, along with AI-driven processes, can help reduce reliance on costly travelers over time.
Strategic focus on geriatric and specialized skills will grow, aligning with demographic needs.
Supporting clinician well-being and resilience is essential to improving retention and stabilizing staffing levels.
