Ted Chien, President and CEO of SullivanCotter, highlights the challenges facing the healthcare industry in transforming how health systems are managed, care is delivered, and performance is measured. While progress has been made in areas such as value-based care and patient-centric experiences, the ongoing crisis in labor shortages continues to be a major source of pain for the industry. Factors such as unprecedented labor pressures, a smaller pipeline of health graduates, and an aging population have contributed to the current crisis.
With nearly 50% of physicians experiencing burnout and projections of significant shortages in nurses and physicians in the coming years, it is clear that without a stable and engaged workforce, health systems are limited in their ability to truly transform. Chien emphasizes the importance of thinking long-term about how to attract and retain talent, reward performance, leverage technology, and create pipelines of future clinicians to address these challenges.
Redefining clinical performance in a value-based care model is essential to improving the patient experience, reducing costs, and streamlining care delivery. However, many current care models still incentivize clinicians based on short-term fee-for-service performance goals, which may not align with the long-term outcomes desired in value-based care. Chien advocates for compensation plans that incentivize both short and long-term goals to create a sustainable balance.
Modernizing compensation and care delivery models is crucial in addressing the labor crisis in healthcare. Increasing base salaries or bonuses is not enough to solve the problem, and organizations need to shift towards performance-based rewards that focus on affordability, quality, outcomes, and patient access. By redesigning physician compensation models and expanding the scope of practice for healthcare providers, organizations can optimize care delivery in the face of labor shortages.
Embracing technology to ease administrative burden is another key strategy to support clinicians and reduce burnout. Automation of tasks can help clinicians focus on care delivery by reducing paperwork and administrative tasks. By deploying technology that enhances engagement and provides resources to ease workload, organizations can support a leaner and more efficient workforce while maintaining quality of care.
Creating better pathways to employment in healthcare is essential to building a sustainable pipeline of future clinicians. With projections of growth in healthcare employment but a decrease in students pursuing health-related majors, organizations must invest in initiatives such as discounted education, scholarships, grants, and early education programs to attract and retain talent in the healthcare field. Overall, redefining performance, adjusting compensation strategies, and embracing technology are essential for healthcare organizations to navigate the challenges of labor shortages and deliver best-in-class care.
