Healthcare Human Resource Management Flynn Mathis Jackson Langan The Nature and Challenges of Healthcare HR Management Chapter 1 PowerPoint Presentation by Tonya L. Elliott, PHR

After you have read this chapter, you should be able to: Learning Objectives After you have read this chapter, you should be able to: Identify the types of healthcare organizations Describe the current and future states of the healthcare industry Discuss several of the human resource challenges in healthcare List and briefly describe human resource management activities Explain the unique aspects of managing human resources in healthcare organizations

Human Resource (HR) Management What is Human Resource (HR) Management? The strategies, tactics, plans, and programs that healthcare organizations utilize to accomplish the work of the organization through its employees.

Key Initiatives of HR Management Workforce Planning Staffing and Selection Compensation and Benefits Employee and Labor Relations Government Compliance Training and Development Health, Safety and Security

Nature of Healthcare Organizations Figure 1-1

Types of Healthcare Organizations Physician Offices and Clinics Hospitals Nursing and Personal-Care Facilities Home Care Health and Allied Services Medical and Dental Laboratories Offices and Clinics of Other Health Practitioners Dentist’s Offices and Clinics

Employment in Healthcare Healthcare Employment Statistics: 11 million jobs in the U.S. 20 of the fastest growing positions in the U.S. Hospitals account for less than 2% of all health service facilities, yet they employ nearly 40% of all healthcare workers

Employment in Healthcare Figure 1-2

Healthcare Positions Hierarchy Figure 1-3

Changing Nature of Healthcare Current Strengths of U.S. Healthcare: Reasonably easy access to care Effectiveness of treatment Continuous advancement in technology Current Issues Facing U.S. Healthcare: Financial Crunch Rise in Consumerism Labor and Talent Shortages Scientific Advancement Assessing & Applying Information

Balanced Budget Act of 1997 Designed to significantly reduce Medicare spending by 2002 spending reduced beyond expectations financial impact Medicare spending projected at $191.5 billion less than anticipated Expanded Medicare definition of a hospital transfer expanded the definition so that acute care hospitals that discharge Medicare beneficiaries classified in one of ten specified diagnosis-related groups (DRGs) are now paid primarily based on length of stay and no longer automatically receive the full DRG rate financial impact $3 billion between 1998 and 2002

Joint Commission on Accreditation of Healthcare Organizations JCAHO is a quality accreditation organization whose members subscribe to a standard-based review process to ensure that the consumers of healthcare are receiving consistent levels of safe, quality care. 11 Hospital Standards or Performance Areas Figure 1-4

JCAHO – Standards That Impact HR HR departments in healthcare organizations that are surveyed by JCAHO are responsible for the HR standards; however, there are standards in other functional areas that have a significant HR focus. These include: Leadership (LD) Environment of care (EC) Information Management (IM) JCAHO Standard Responsibility HR, LD Staff competency HR, LD, IM, EC Education and training needs HR, LD Staffing plans and levels

The HR Function in Healthcare HR Management is becoming an equal contributor to other organizational areas: Need to provide more efficient and effective HR services Greater need for human resource training, skills, understanding, and competency As challenges and complexities of healthcare HR management has grown, healthcare managers are requiring more strategic support from their HR departments

HR Management Activities Figure 1-5

HR Management Roles

HR: A Strategic Business Partner HR becomes a strategic business partner by: Analyzing the internal strengths and weaknesses of the people in the organization Developing the capabilities of all individuals in the organization Working with executives and managers to revise the organization and its components Participating in strategic planning Ensuring financial accountability for HR results Advising on decision making on mergers, acquisitions, and downsizing

HR Challenges in Healthcare Recruitment and Retention A growing number of healthcare professionals are retiring An increasing number of aging baby boomers requiring care Fewer younger people are choosing the profession: Shift in view of profession from high tech to low tech Shift from a secure & prestigious profession to chaotic & unstable Many more employment options for women to choose from Healthcare workers have less connection with patients due to shift to shorter-stay hospital systems Shift from mass-production society to information society makes the 24/7 schedule demands less attractive

HR Challenges in Healthcare Managing Change There are many changes happening in healthcare: Organizational Consolidation Declining margins affected by lower reimbursements Technological advances Consumers demanding improvement in clinical performance Environmental forces Market forces

HR Challenges in Healthcare Managing Change Key issues for HR Management include: Doing more with less Compliance with quality standards Implementing diversity planning and culturally competent care Preparing healthcare workers for new technologies Balancing professional and personal lives Succession planning