A benchmark to look at is the Labor Ratio. This metric is calculated based on total labor costs divided by total revenue. According to American College of Healthcare Executives 2015 Congress, the median labor ratio for U.S. hospitals is 55 percent, but the highest and lowest performers vary by 20 percent. Best practice is about 45 percent. In perfusion, I would agree with that. Finding ways to work lean can result in an improved labor ratio -- meaning a better bottom line. Very good.... theoretically.
Let's not overlook the fact that it's not just about the bottom line these days! In my last newsletter (copy on
Trident's blog), I expounded upon the perfusionist staffing shortage that currently exists within hospitals and perfusion contractors nationwide. What we are facing is very real and as the problem lingers and/or intensifies, we must delve a bit deeper to find ways to enliven our programs and keep our best perfusionists happy and financially healthy. That said... are we actively doing that beyond offering just a paycheck? Total compensation includes recognition for additional work, benefits, time off, etc. During times of shortage, it's time to look at creative ways for recruitment and retention.
Alongside supply and demand for quality staff, we've got to ask ourselves what else drives our program costs?
The competitive marketplace.... that's what drives costs. What do other hospitals and contractors pay clinicians? How do salaries compare? What premiums are paid for experience or for filling hard-to-fill geographic assignment locations or more difficult populations of patients? Does anyone REALLY know the skinny on this? Also, it's hotly debated whether the costs for outsourcing perfusion staffing equate to cost savings, efficiencies, and quality of clinical care. Many programs are founded in belief systems that are philosophical and not supported by the facts or experience of others.
To know the competition is to research the market. This can include scientific research, media articles, expert opinion by those working in the industry, observation within the workplace and through first hand reports of peers and colleagues, etc. Facts are our friends and it is good businessmen and businesswomen who rely on solid data. While we pride ourselves at Trident for being informed, there's always still more to capture among our informational arsenal.
Salary information is one of the deepest secrets of the labor market and key information impacting the cost effectiveness of perfusion programs. How do you know if your program is cost effective unless you know the market rate for labor? Until now, no statistically validated compensation study results exist for perfusionists. That's why Trident Health Resources, Inc. decided to fund the independent research:
The 2015 Perfusionist Salary Survey, the first validated salary survey of its kind that uses an independent medical research company (Medpanel) to validate surveys and retain confidentiality of respondents. Now underway, we will look to results of this independent study which will be published free to the public upon completion.
Everyone will have access to this information to the exclusion of no one. Trident stakes no claim to unjust enrichment from the study - it is open access to all.Even though the results of the study will stand on their own, future articles within a series are planned that will provide our take on the state of the industry, posted at our website. We hope to see evidence that supports a bright career future for perfusionists that ensures increasing compensation. We hope the research enlightens the perfusion community and employers with consideration to diversity, geography, experience, and workloads. We all need this knowledge. Who knows... the answers might surprise all of all us.
Stay tuned for the next installment on these very important topics.
