Health Reform Will Change Hospitals’ Labor Demands, Report Says

The federal health reform law will change labor demands significantly at hospitals in California and around the U.S. in the next few years, according to a survey by consulting firm Towers Watson, Payers & Providers reports.

The survey includes responses from executives at 100 hospitals and hospital systems around the country.

Key Findings

More than three-fourths of surveyed organizations said they will need to recruit executives with much more diverse skills. Physician management skills will be especially sought after, according to the survey.

The survey also found that:

• 93% of respondents said they expect reimbursement rates to be reduced in the next few years; and
• 70% of respondents estimated there would be labor shortages -- particularly with nurses and physicians -- in the next several years.

Conclusions

Heidi Toppel -- a senior consultant for Towers Watson -- said that "hospitals have to rethink and refine core business and operating processes while continuing to deliver quality care to the communities they serve."

According to Towers Watson, health care organizations that are not taking steps now to prepare for impending changes "could find themselves with a limited pipeline of talent with the right combination of skills to drive transformation" (Payers & Providers, 1/12).