Healthcare facilities across the U.S. are grappling with significant staffing challenges, with burnout and turnover rates at an all-time high. According to a recent survey by the American Hospital Association, nearly 94% of healthcare facilities reported experiencing a shortage of healthcare workers, directly impacting patient care and operational efficiency. These challenges, compounded by an aging population and the ongoing demands of the healthcare system, have made it increasingly difficult for hospitals and clinics to maintain optimal staffing levels.
In response to these pressures, many healthcare providers are turning to per diem and local staffing solutions as a flexible and cost-effective way to address workforce shortages. By leveraging these staffing models, healthcare facilities can better manage fluctuating patient volumes, reduce labor costs, and ensure that high-quality care is consistently delivered. This blog will explore how per diem and local staffing can improve healthcare efficiency, helping organizations navigate the complexities of modern healthcare delivery.
Understanding Per Diem and Local Staffing
What is Per Diem Staffing?
Per diem staffing refers to a flexible employment arrangement where healthcare professionals work on an as-needed basis, often filling in for full-time staff who are on leave or covering shifts during peak demand periods. Unlike traditional full-time or part-time roles, per diem staff do not have a fixed schedule and are typically called in to work for a single day or short-term assignments. This flexibility allows healthcare providers to quickly adapt to changing patient volumes, ensuring that staffing levels are always aligned with the facility’s needs.
What is Local Staffing?
Local staffing involves employing healthcare professionals who live within the community or region where the healthcare facility is located. This model leverages the proximity of staff to reduce travel time and associated costs, allowing healthcare facilities to respond quickly to staffing needs without the delays often associated with temporary or traveling nurses. Local staffing ensures that facilities have access to a pool of qualified professionals who are familiar with the local healthcare system, regulations, and patient demographics, contributing to more efficient and effective patient care.
Benefits of Per Diem and Local Staffing for Healthcare Efficiency
Flexibility in Workforce Management
One of the most significant advantages of per diem and local staffing is the flexibility it offers in workforce management. Healthcare facilities often face unpredictable patient volumes due to factors such as seasonal illnesses, emergencies, or sudden staff shortages. Per diem and local staffing models allow facilities to quickly scale their workforce up or down in response to these fluctuations. This ability to adjust staffing levels on short notice ensures that patient care remains uninterrupted, even during periods of high demand, without overstaffing during slower times.
Cost-Effectiveness
Per diem and local staffing models can lead to substantial cost savings for healthcare facilities. Unlike full-time employees, per diem staff typically do not receive benefits such as health insurance, retirement plans, or paid time off, which reduces the overall cost of employment. Additionally, these staffing models help avoid the high costs associated with overtime pay. By strategically utilizing per diem and local staff, healthcare facilities can maintain optimal staffing levels without incurring the expenses associated with hiring and retaining full-time employees, making these models a cost-effective solution for managing workforce needs.
Improved Patient Care
An adaptable and responsive staffing model is crucial for delivering high-quality patient care. Per diem and local staffing provide healthcare facilities with the flexibility to ensure that they have the right number of skilled professionals available at all times. This adaptability helps to prevent overworked staff from becoming overwhelmed, which can lead to errors or compromised patient care. By having the ability to bring in additional staff as needed, healthcare facilities can maintain a high standard of care, improve patient outcomes, and reduce wait times, leading to a more positive patient experience overall.
Reduced Burnout and Turnover
Healthcare professionals often experience burnout due to long hours, high-stress environments, and heavy workloads. Per diem and local staffing options can help alleviate this issue by distributing the workload more evenly and preventing staff from becoming overburdened. When facilities can rely on a flexible workforce to fill gaps, regular staff are less likely to experience the exhaustion that leads to burnout. This, in turn, reduces turnover rates, as employees are more likely to stay in their positions when they feel supported and are not constantly overworked. Lower turnover not only improves staff morale but also contributes to greater continuity of care and overall operational efficiency.
Successful Implementation of Per Diem Staffing
Case Study: Mount Sinai Health System
Mount Sinai Health System in New York City, one of the largest and most respected healthcare systems in the U.S., successfully implemented a per diem staffing model to address its fluctuating patient volumes. During the COVID-19 pandemic, Mount Sinai faced unprecedented surges in patient admissions, requiring rapid scaling of its workforce. The hospital system leveraged per diem nurses to fill critical staffing gaps, ensuring that all units were adequately staffed without the delays associated with hiring full-time employees. By utilizing a pool of per diem professionals, Mount Sinai was able to maintain high standards of care while efficiently managing labor costs during a time of crisis. The flexibility of this model also allowed the system to scale back staff when patient numbers declined, avoiding unnecessary expenditures.
Case Study: Cleveland Clinic
Cleveland Clinic, a globally recognized healthcare provider, has long utilized per diem staffing to enhance its workforce management. The facility regularly experiences variable patient volumes, particularly in its surgical departments. To address this, Cleveland Clinic employs per diem surgical nurses who are available on short notice to support scheduled procedures or cover for full-time staff on leave. This approach has allowed the clinic to maintain optimal staffing levels, ensuring that surgeries are not delayed due to personnel shortages. The use of per diem staffing has not only improved operational efficiency but also contributed to better patient outcomes by ensuring that experienced and specialized staff are always available when needed.
Local Staffing in Action
Case Study: Kaiser Permanente
Kaiser Permanente, one of the largest not-for-profit health plans in the U.S., has effectively utilized local staffing to meet the needs of its diverse patient population across multiple regions. In California, where Kaiser Permanente operates numerous hospitals and clinics, the organization has focused on hiring local healthcare professionals who are familiar with the community and its specific healthcare challenges. This localized approach has enabled Kaiser Permanente to respond quickly to patient needs, reduce travel costs, and improve continuity of care. For example, during seasonal flu outbreaks, Kaiser was able to deploy additional local nurses and physicians to high-demand areas, ensuring that patient care was not compromised. The familiarity of local staff with regional health trends and patient demographics has further enhanced the efficiency and effectiveness of care delivery.
Case Study: Mercy Health
Mercy Health, a leading health system in the Midwest, has successfully implemented local staffing strategies to improve healthcare delivery in rural areas. Recognizing the unique challenges of providing care in rural communities, where access to healthcare professionals can be limited, Mercy Health prioritized hiring local staff who live and work within these communities. This approach has allowed Mercy Health to build strong, long-term relationships between healthcare providers and patients, leading to improved patient satisfaction and better health outcomes. By investing in local talent, Mercy Health has also been able to reduce turnover and enhance staff retention, contributing to greater operational stability and efficiency across its network of facilities.
Final Thoughts
Per diem and local staffing models offer healthcare facilities a powerful solution to some of the most pressing challenges in workforce management. These models provide the flexibility needed to adapt to fluctuating patient volumes, allowing facilities to scale their workforce efficiently without incurring the high costs associated with full-time employment. By leveraging per diem and local staff, healthcare providers can ensure consistent, high-quality care, improve patient outcomes, and reduce burnout among their permanent staff. Additionally, these staffing strategies foster stronger connections between healthcare professionals and the communities they serve, enhancing continuity of care and patient satisfaction.
