building the business case for investing in recruitment
DESCRIPTION
Hospitals lose significant revenue when a physician position goes unfilled. This presentation was given to members of the Northeast Physician Recruiter Association. It explains why and how to build the case for a health system to invest in recruitment.TRANSCRIPT
A case study showcasing Carolinas HealthCare System
John Larson, Vice President, Physician & Advanced Practitioner Recruitment & Retention, Carolinas HealthCare System
Shawn Kessler, Senior Strategist, ab+c Creative Intelligence
Building the business case for investing in recruitment
Shawn Kessler
Introductions
• Senior Strategist, ab+c• Founded Zero-In Recruitment Marketing• Marketing Specialist – Geisinger Health System, PA• Support multiple recruiter groups:
• ASPR• NEPRA (Northeast Physician Recruiters Association)• MAPRA (Mid-Atlantic Physician Recruiter Alliance)
About ab+c
John Larson, MHA
Introductions
• Vice President, Physician & Advanced Practitioner Recruitment & Retention, Carolinas HealthCare System
• Formerly: • Director, Physician & Advanced Practitioner Recruitment,
Baystate Health, Springfield MA• Physician Recruiter, Dreyer Medical Clinic, Aurora IL• Physician Recruiter, Alexian Brothers Medical Center, Elk
Grove Village IL
About Carolinas HealthCare System
• One of the nation’s largest and most innovative healthcare organizations
- Nearly 900 care locations- More than 40 hospitals- Academic affiliation
• Located in North and South Carolina• Diverse opportunities:
- center-city opportunities- rural opportunities- specialized/generalist
• Diverse geographic locations
Looking to the future
Where our story begins…
• Organization understands the importance of promoting themselves nationally for recruitment
• Show the business case behind investing in a stronger recruitment function
Things to keep in mind:
This is the business case…
• Leadership within the organization will not be swayed by something “feeling right”
• It is critical that all materials presented are as relevant to the organization as possible
• Check, then check again, to make sure all calculations are correct… then have someone else check
• Don’t present the problems without your ideas for a solution
Effective Physician & Advanced Practitioner Recruitment
An Organizational Imperative
Success requires the right tools• Solid understanding of our Employment Brand
– What is better about CHS compared to our competition?– What are our marketable traits?– What are our key messaging points?– What are the character traits of our ideal candidate?– What are our weaknesses? So we can defend them!
• Effective provider recruitment Web Portal– Written specifically for providers, not patients– Organized to make our large system manageable– Easy to use, guiding candidates down the path to employment
• Consistent and clear Marketing Tools– Direct mail templates, email templates, journal ad templates, etc.
The growing physician shortage
The growing physician shortage• Physician population will grow by 7%• 36% increase in the number of Americans over 65• In 2011 only 51% of searches were filled nationally—a
decrease from 60% in 2010• Searches that were open for more than one year rose from
36% in 2010 to 42% in 2011• Primary Care saw its average time-to-fill increase 20%• The “most urgent health problem facing this country at the
present time” = access
The cost of a physician vacancy
On quality and patient experience:• See more patients in less time• Retain patients and continue growth• Cover additional call• Family pressures due to more time
working• Negative patient perception -
physician time = quality• Patient migration
The cost of a physician vacancy
On the bottom line:• Felt beyond the department –
pushing into testing, diagnostic and rehab services
• Average net revenue = $1,543,788• $1 paid = $9.38 received• Thousands “at-risk” every week$
Carolinas HealthCare SystemWhat it means to usYear to date (9 months): CHS consolidated and non-consolidated employed physicians (1,278.57) accounted for $727,895,549 CHSMG net revenue. This equates to $759,072 CHSMG net revenue per physician, per year.
Carolinas HealthCare System is currently seeking 275 physicians.
Some of these positions have been open for as long as 2.5 years.
Carolinas HealthCare System
For every month a physician position stays open, Carolinas HealthCare System suffers an average
CHSMG net revenue loss of:
$63,256
Carolinas HealthCare System
Currently, the average time to fill a position at Carolinas HealthCare System is 10.7 months.
If we improve our time-to-fill by just 5%, the organization would realize a CHSMG net revenue gain of
$9,306,547 Per Year
How we will accomplish our goal
• Research our unique employment branding value proposition
• Develop a best-in-class recruitment web portal
• Create consistent and clear marketing tools to push candidates to the portal
10 benefits of a strong employment brand
• Creates efficiencies and drives strategies• More candidates that match organizational culture • Increased attraction and closing of passive candidates• Lower rate of offer rejection• Larger number of employee referrals • Higher likelihood of employee brand ambassadorship• Increased levels of employee engagement • Provides a competitive advantage • Improved patient satisfaction • Shorter recruitment cycles
Bottom-line benefits• Two times lower cost per hire• 28% lower turnover rates• Research shows a connection between developing an
attractive workplace and performing financially well• 70% of job candidates willing to accept less than their lowest
desired salary• Attract at least 3.5 times more applicants per job
Proposed architecture and content
TOP SECRET!
Carolinas HealthCare System
Currently, the average time to fill a position at Carolinas HealthCare System is 10.7 months.
If we improve our time-to-fill by just 5%, the organization would realize a CHSMG net revenue gain of
$9,306,547 Per Year
Carolinas HealthCare System
If we improve by 20%:
$37,226,186Per Year
“Creativity is intelligence having fun.”— Albert Einstein
Questions?
Thank you!
Shawn Kessler, Senior Strategist, ab+c Creative Intelligence