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For LTACHs, labor costs represent an average of 60% of hospital operating expenses, of which nursing comprises more than half. Hence, demands on LTACHs to manage labor cost, increase the quality of care, and lower the cost of delivering services have increased exponentially.

On the other hand, LTACHs can control and plan their admissions and should ideally have zero staffing issues via a proactive scheduling process that incorporates admissions, acuity, and the right resource. This is an advantage that LTACHs have and they need to exploit it instead of relying heavily on the agency, overtime and other options that drive high turnover.

According to IDC Health Insights – An aging population and increased prevalence of chronic conditions will drive consumer demand for more healthcare services and for nurses and other caregivers who deliver these services. As demand increases, a shortage of skilled, experienced nurses will continue to increase. This along with an aging workforce is driving the need for healthcare organizations to efficiently manage their workforce.