The Hidden Truth: Why hospitals can't shake the agency bug
My conversation this month is with William Reau, CNO of Brighton, Michigan based FlexChoicxeRN, a consulting firm that specializes in Contingent Workforce Management.
Mr. Reau, a licensed Critical Care RN, founded FlexChoiceRN initially as a staffing agency but grew tired of being a “necessary evil” and has moved the firm in a different direction. Reau decided to take his clinical and staffing experience directly to hospitals that want to stop relying on external staffing agencies. By teaching them how think, act and recruit like an agency, hospitals are finding that they can attract “non traditional” employees just like agencies do. The results? In their most recent large scale engagement FlexChoiceRN has taken St. John Health, a 7 hospital system from a monthly agency spend of $900,000 down to $16,000 in less than 12 months. Simultaneously, St. John has hired an additional 250 nurses which make up their internal contingent labor pool. The estimated hard dollar cost savings are greater than $2 million and counting. The outcomes have not gone unnoticed. St. John recently won a national best practices award by parent company Ascension Health, the largest Catholic and non-profit health system in the country and new clients are lining up to be next.
JN: First of all, congratulations on your success with St. John.
WR: Thank you, it's been a very positive experience.
JN: What would you say is the biggest reason hospitals are so dependent on staffing agencies?
WR: Hospitals have not adapted well to the wants and needs of a growing segment of “non traditional“ nurses; however the agencies have. The very nature of healthcare is reactive; hospitals are always reacting to the next crisis that comes through their doors. Similarly, they are reactive in their recruiting strategies which typically involve a lengthy hiring process. Staffing agencies work proactively; they are always recruiting, always hiring, always receiving future availability from their nurses. Also, most hospitals offer lower pay than agencies and offer less flexibility. Staffing agencies offer complete flexibility and premium pay which is very attractive to the modern day nurse.
JN: What is the biggest challenge hospitals face in looking to create an effective in house “agency”?
WR: Embracing the cultural shift that accompanies a change from a traditional nursing department to one that adopts the best practices of an outside agency. This change in culture that is necessary to attract and retain the modern nurse is very different from the culture that most nursing leaders have been in their entire careers.
JN: I hear many hospitals say that the nursing shortage is the reason that they rely on agencies. How would you react to that statement?
WR: There is no doubt that nurses are in short supply. However, the staffing agency market is a multi billion dollar industry and has spent decades reinforcing the belief that agencies are the answer. Therefore hospital employees from recruiters/HR to nursing managers have spent their careers accepting this notion. So I ask the question back, how is it that those agencies can find and supply you with nurses, yet you're not able to attract them yourself?
JN: And the answer I presume is in your answer to my second question?
WR: Precisely. A fear or inability to change combined with a lack of know how.
JN: So I guess that's where you and FlexChoiceRN come in?
WR: Yes, we look to partner with healthcare organizations that have made it a strategic goal to eliminate the reliance on outside nursing agencies and develop an employment culture that addresses the changing demographic of nursing.
JN: What can our readers do to learn more about FlexChoiceRN and your business?
WR: They can call FlexChoiceRN and ask to speak to myself William Reau at 810-225-8380 or visit www.FlexChoiceRN.com
Contacts
William Reau
866-767-8233
www.FlexChoiceRN.com
Jeff Niles
630-544-6754
jniles@shiftwise.net
www.shiftwise.net
