SOURCE: The Healthcare Management Council, Inc.

The Healthcare Management Council, Inc.

February 24, 2009 08:00 ET

Avoid Across-the-Board Hospital Layoffs With HMC's Span of Control Review™

NEEDHAM, MA--(Marketwire - February 24, 2009) - As the U.S. recession deepens, and hospitals see their revenues falling and costs increasing, pressure is building for hospital layoffs and cutbacks.

Reduction in Force (RIF) actions are difficult decisions but are sometimes necessary to keep hospitals financially sound. Savvy hospital CEOs are making RIF contingency plans should their economics demand it. However, it's very important that they be targeted, rather than across-the-board, and include hospital management, not just front line employees. Here's why:

--  Across-the-board hospital layoffs reward prior inefficiency. The
    managers and staff of the best hospital departments are penalized for their
    good work.
--  Across-the-board actions may actually increase overtime costs and
    lower performance. For example, if nurses are the target of the hospital
    layoff, when demand increases temporarily, overtime is required and quality
    of care may suffer. The right strategy is for hospitals to set up these
    front line positions to flex with demand.
--  If managers are not included in the across-the-board cuts, morale
    erodes and the hospital's culture of fairness weakens.
--  Thinning the ranks of working supervisors neither saves significant
    money or improves decision making.
--  Thinning middle and senior management ranks usually benefits decision-
    making by reducing fragmentation and layers, making hospital organizations
    more nimble during hard times.

HMC's Span of Control Review™ provides an alternative to across-the-board RIF cuts and hospital layoffs, using the twin strategies of management reductions and controlled area consolidations.

The HMC Span of Control Review™:

--  Defines the actual number of managers a hospital actually needs
--  Targets specific managers who are managing fewer employees than their
    counterparts at peer hospitals
--  Shows which management positions may be eliminated without overloading
    the remaining managers
--  Details excessive management layers
--  Shows the smallest practical organizational structure for managing a
--  Provides a blueprint for a lean, flat hospital organization

Contact The Healthcare Management Council today to view an online demonstration of how the HMC Span of Control Review™ helps hospitals lower costs while avoiding the problems associated with across-the-board layoffs and Reduction in Force actions.

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