1. 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

2. 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

3. 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.

4. 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

5. Nature of Healthcare Organizations
Figure 1-1

6. 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

7. 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

8. Employment in Healthcare
Figure 1-2

9. Healthcare Positions Hierarchy
Figure 1-3

10. 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

11. 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

12. 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

13. 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

14. 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

15. HR Management Activities
Figure 1-5

16. HR Management Roles

17. 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

18. 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

19. 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

20. 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