Managing Health Services Organizations Quiz 3

Managing Health Services Organizations Quiz 3 - Managing...

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Managing Health Services Organizations Quiz 3 Human Resources Management Human capital is your largest asset: 43% of hospital expense is labor o o Purchased labor: 5% o Healthcare is a service industry o The product is produced/manufactured at the same time it is delivered o The quality of the product is tied directly to the delivery and, therefore, to the deliverer o An employee can ruin an otherwise good product through poor or insensitive delivery Value Chain – It Works o Health Care’s New Challenge o The major challenge facing health care today (and for at least the next decade) is finding and retaining talented people Western Society and Demographics: o Five significant western demographic and societal trends The workforce is aging Fewer potential workers following the retiring baby boom generation Increased need for health care services as baby boomers age Fewer potential workers are choosing health careers Employee dissatisfaction is high o Five significant trends in international health labor market
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Informal private sector dominates care in much of Asia and Africa Low resources in low-income countries: public sector unable to pay living wage to health care workers Supply unable to keep up with demand Brain drain: Skilled workforce is migrating AIDS is decimating workforce in Africa Increased need for health care services with epidemiologic transition to chronic diseases Supply = Demand o Labor Demand = Current Work + New Work +/- Technology +/- Productivity +/- Reengineering o Labor Supply = Existing workforce + New Entrants + Retrained Workers – Turnover – In/Out Migration Turnover is Costly – DoL Model o Cost of turnover = Cost per hire + Vacancy Impact A cost per hire = annual salary of position x .25 Vacancy impact = annual salary of position x .30 Silent Cost of Turnover o Cost not easily quantified Lost productivity as resigning employee leaves Lost productivity during orientation of new employee Premium costs (overtime or agency cost) to backfill for vacancy Decreased morale of remaining staff Human Capital Replacement Costs o Direct Recruiting Costs Advertising Agency fees Referral fees Signing bonuses Travel Expenses Testing/Profiling costs o Indirect Recruiting Costs
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Interviewing costs (time) Employee training (to interview) Travel expenses o Productivity and Training Cost to fill in for lost employees Other Employees time Training/orientation costs Seminars/conferences/e-learning Travel expenses Critical project involvement o Termination costs Exit interviewing costs (time) Severance pay Productivity losses o Market Availability of Talent: Every month that a typical hospital waits to improve workforce retention can cost over $300.00 per month in additional replacement costs Brain drain o 56% of migrating physicians move from less-developed countries to developed
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This note was uploaded on 04/17/2011 for the course PH 551.601 taught by Professor Ward during the Fall '09 term at Johns Hopkins.

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Managing Health Services Organizations Quiz 3 - Managing...

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