HAUPPAUGE, New York, March 30, 2022 (GLOBE NEWSWIRE) — To help hospitals and health systems assess their current bill rates for contracted labor – an expense that has skyrocketed in recent years due to ongoing nursing shortages compounded by the pandemic – Hallmark Health Care Solutions (HHCS) has just released the second edition of its semi-annual, state-by-state bill rate data report.
With input from a diverse panel of U.S. healthcare staffing agencies of all sizes, the Hallmark Health Care Solutions Spring 2022 Rate Summary Report aggregates the industry’s most up-to-date bill rate data and market feedback for nursing, allied health, and non-clinical contracted labor. In addition to detailing the highest and lowest rates in each state, the report also provides a data-driven “recommended rate” range.
The free report is available for download here.
“To reduce labor costs by making better decisions about agency procurement and your employment models, you need your finger on the pulse of real-time, market-driven bill rates for your area – that’s the insight this report delivers,” says William Reau, Principal and Chief Operating Officer at HHCS. “From there, you can see if you are overpaying and move to drive costs down by asking your agency partners to adjust the bill rates to align with current market rates.”
Key findings from the data analysis include:
- After a period of spikes and volatility from last August through December that saw rates reach highs ranging from $8,000 to $10,000 per nurse per week, bill rates are finally starting to come down. Barring unforeseen developments, this trend will likely continue for several months.
- Not all third-party vendors have lowered bill rates, and many healthcare organizations are overpaying. In general, the data indicated that hospitals in most regions of the country may now be able to expect bill rates to come down by 15-20%.
This kind of bill rate information is needed now more than ever. According to research from NSI Nursing Solutions, Inc., the national turnover rate for RNs reached 18.7% in 2021. This high turnover has forced hospitals and health systems to rely increasingly on contract agency labor – with many falling into competitive bidding wars that are unnecessarily inflated by uncertainty around what local rates really are. As a result, estimates from the healthcare consultancy group PINC AI indicate hospitals are paying $24 billion more for labor than before the pandemic.
With regard to the recent and long-awaited rate decreases, Reau notes that it’s wonderful to see, but he cautions against interpreting it as a sign that the workforce is ready to return to the old normal. “Declining bill rates provide some financial relief, but regaining control over high-cost premium labor means addressing the root problem – that today’s workforce wants the flexibility and engagement models like agency deployment. That won’t change, so healthcare organizations need to adapt.”
To hire more and contract less, explains Reau, the long-term solution lies in “creating your own agency,” which means modernizing your employment models and having the right technology in place to support those efforts. The Einstein II workforce management solutions for internal resource pools and continent labor management enable hospitals and health systems to design and execute flexible employment models that convert traveling nurses and contract staff to permanent hires, while also optimizing all aspects of labor and vendor management when contingent labor is needed.
For more information, download your bill rate report or visit EinsteinII.com.
About Hallmark Health Care Solutions, Inc.
Hallmark Health Care Solutions, Inc. (HHCS) is a healthcare technology firm headquartered in New York. Each of our experienced executive team members brings an average of 20+ years in IT, nursing, process engineering, finance, and healthcare. HHCS is ranked No. 318 in the 2021 Inc. 5000 List of Fastest Growing Private Companies in the U.S. The company’s software solutions are used by over 50,000 healthcare professionals in more than 1,500 healthcare facilities across all 50 states. In the past decade, we have collectively delivered over $100 million in cost savings and revenue gains to our clients and calculated nearly $5 billion in physician compensation, thanks to our best-in-class workforce and compensation management technologies.
HHCS’ workforce solutions include Einstein II, a workforce deployment and vendor management solution, and Heisenberg II, a physician compensation and contract management solution. For more information, visit einsteinii.com and heisenbergii.com.