Report: Hospitals' long-term approach to healthcare reform underwhelming

Despite recognizing that success with new healthcare delivery and reimbursement models will depend on commitments to quality, service and efficiency, hospitals haven’t done enough to prepare for ongoing and planned healthcare initiatives, according to a report by Towers Watson, a financial management firm.

The survey, published September 2011, of 100 human resource executives from hospitals of various sizes in the U.S. and the U.K. revealed that 67 percent believe that new legislation will negatively affect their organizations, according to the New York City-headquartered firm.

“Already struggling to cover fast-rising costs, industry executives see a triple threat: a reduction in government reimbursements along with declining payments from private insurers–at the very time regulatory requirements and growth imperatives will require increased investments in technology,” the report read.

Although understanding of the respondents’ general sentiment, the report suggested that hospitals’ fiscal problems could be exacerbated if they don’t reassess their strategies for healthcare reform.

According to survey results, strengthening primary care capabilities scored poorly overall among respondents’ short-term concerns and between one-fourth and three-fourths of respondents believe labor supply would not drastically change in the future.

The report suggested that these results indicated complacency and that, although it noted a trend toward hiring more primary care providers, hospitals should do more to integrate new hires into their networks. Additionally, the report suggested that a larger population of insured patients and a trend among recent medical school graduates toward specialties may lead to a shortage in qualified healthcare professionals.

The report noted most respondents believe that their organizations attract employees with non-monetary incentives like job security, length of commute and career development opportunities, even though employees' responses to questions about leaving a workplace indicated most do so because of their relationship with their boss, their salary and stress.

“These differences between employer and employee views suggest hospital employers may need to refresh their employee value proposition over the next few years–taking closer note of what employees value and what the organization wants to reward,” the report read.

The report concluded with a set of recommendations for hospitals based on the survey’s results. They should:
  • Diligently train staff, build their skills and prepare them for career advancements;
  • Provide flexible schedules to their employees, especially their nurses, because flexibility might be as valued as small pay increases;
  • Offer a range of monetary and non-monetary rewards that employees value and that encourage behaviors that will help the organization succeed; and
  • Carefully monitor their workforce and think creatively about staffing arrangements to have the right staff at the right times at the right price.

The report is available in its entirety here.

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