Vice President Operations
HCA - Far West Division
Understanding and optimizing overtime, reducing on-call vs. call-back, minimizing contract labor usage, and understanding bonus pay practices are all key components of premium pay. This presentation will equip you with tools and strategies to reduce your premium pay.
In times of decreasing revenues there is a renewed focus and interest in managing labor expenses since salaries and wages make up the largest controllable expense. There are different expense reduction strategies based on the type of premium pay. For example, overtime can be classified into four different types: inappropriate overtime, incidental overtime, scheduled overtime, and census overtime. In order to reduce overtime, several strategies can be employed:
For contract labor, there are five types of usage: contracted department, missing targets using contract labor, non-clinical contract labor, core positions, and volume. Strategies to reduce contract labor include: recruiting, retaining, re-educating, tracking, and developing policies.
Lessons learned include: