UW Health is tackling rising workforce costs by reducing reliance on contract labor. This is crucial as these expenses can consume a large portion of operational budgets.
Jodilynn Vitello, the Vice President of Finance at UW Health, is at the forefront of a strategy that prioritizes long-term workforce stability amidst a national labor crunch. “We’re using significantly more contracted labor now than before the pandemic—sometimes five to ten times higher,” Vitello shared, highlighting the financial strain that ongoing staffing challenges have created.
Contract labor helped keep services running during the worst of staffing shortages. However, the ongoing use of these high-cost positions has put financial viability to the test. “We’re seeing shortages in nursing and other essential roles like respiratory therapy and surgical techs,” she noted.
To combat this, UW Health is investing in internal talent pipelines. “We’ve launched several apprenticeship programs aimed at filling hard-to-fill roles,” Vitello explained. These initiatives will help cultivate and support new talent from the beginning of their careers.
Retention is just as important. The health system has made consistent efforts to align compensation with market trends, introducing raises and targeted bonuses when necessary. “While retention bonuses are used sparingly, they are tracked closely to assess their impact,” Vitello mentioned.
Collaboration is key for UW Health. Finance and HR teams work hand-in-hand with clinical leaders to tackle immediate staffing challenges. “This synergy allows us to address labor gaps quickly, ensuring our investments are in line with patient care needs,” Vitello added.
UW Health has also adopted advanced labor tracking tools to manage the shift from contract to permanent staffing. By monitoring labor needs for the upcoming weeks, leaders can anticipate staffing changes and adjust recruiting efforts accordingly. “We have visibility into which travelers might stay or leave, helping us decide if we need to extend contracts or absorb positions internally,” she explained.
Though UW Health hasn’t fully incorporated AI into its labor management just yet, they are exploring possibilities. “We’re carefully evaluating what AI can offer and how it fits our operating reality,” Vitello noted. Their investment in Oracle Cloud has already streamlined operations across finance, HR, and supply chains. Moving forward, they plan to enhance scheduling tools for better workforce deployment.
Currently, UW Health is concentrating its agency relationships to improve pricing and transparency. “Working closely with a single partner allows us to manage contracts better and streamline operations,” Vitello said. The goal is to reduce contract labor dependency while fostering a workplace culture that encourages employee retention.
Indeed, the challenge is not just about operational efficiency. “We want to attract people who are willing to work off-hours, like night shifts or weekends,” Vitello explained. Her finance team is working on making these positions more appealing through enhanced compensation and career growth opportunities.
As health systems face ongoing workforce challenges, UW Health’s proactive measures could serve as a blueprint for balancing cost and culture in the healthcare industry.
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