How Hallmark’s technology helped Norton Health gain control of their contingent labor management practices
Labor Management Practices
Norton Healthcare, a leading healthcare provider, faced significant challenges with their contingent labor resources. The sudden surge in patient numbers led to a 900% increase in the use of travel nurses, escalating labor costs, and causing inefficiencies in workforce management. Norton’s reliance on travel nurses was unsustainable, and the organization needed a solution to regain control and efficiency in its healthcare labor management. Enter Hallmark, whose innovative approach transformed Norton’s labor management practices and positioned them for future success.
The Problem: Escalating Labor Costs
Norton Healthcare’s reliance on travel nurses became a critical issue, with a staggering 900% increase in traveler use at its peak. This reliance led to skyrocketing labor costs and inefficiencies in workforce management. The organization found it challenging to manage scheduling, communication, and invoicing efficiently. Furthermore, Norton’s existing Managed Service Provider (MSP) system proved inadequate in addressing these challenges, adding to the complexity and inefficiency of labor management.
Betsy Coomer, Director of Norton Clinical Agency, points out, “The problem with MSPs is that they have skin in the game – their primary goal is to gain more contracts, not ensure our rates are right where they should be.” The MSP system was unable to provide the real-time data and control that Norton needed, resulting in higher costs and operational inefficiencies.
Hallmark’s Solution
Hallmark introduced the Einstein II contingent labor platform to Norton Healthcare, addressing their labor management challenges with a comprehensive, technology-driven approach. The platform’s robust features and seamless integration capabilities played a crucial role in transforming Norton’s labor management practices.
- Einstein II Contingent Labor Platform: This platform offers self-scheduling, real-time updates, and automated communication, ensuring seamless integration with Norton’s existing software. This allowed Norton to streamline its scheduling processes, reducing the time and effort required to manage shifts and ensuring staffing levels matched patient needs.
- Efficiency Gains in Reporting and Invoicing: The platform’s integration capabilities improved efficiency in reporting and invoicing, reducing administrative burdens. Automated processes replaced manual tasks, minimizing errors, and freeing up staff to focus on patient care and other critical activities.
- Real-Time Rate Control and App-Enabled Connectivity: Real-time rate control and app-enabled connectivity allowed Norton to manage staffing more effectively, ensuring the right resources were in the right place at the right time. The ability to adjust rates in real-time helped Norton stay competitive and attract quality staff while controlling costs.
Key Achievements with Implementing Hallmark Einstein II
Within seven months of implementing Hallmark’s solution, Norton Healthcare achieved remarkable results:
- Hiring 300+ New Clinicians: Norton successfully hired over 300 new clinicians, significantly bolstering its internal resources. This growth in internal staff reduced the dependency on travel nurses and provided a more stable and committed workforce.
- Cost Savings: The organization saved $30-40 per hour on travelers, a substantial reduction in labor costs. These savings were reinvested in other critical areas, enhancing overall operational efficiency and patient care.
- Conversion of External Staff: Norton converted 30-40% of externally contracted staff to internal resources, reducing reliance on expensive travel nurses and creating a more stable workforce. This change not only reduced costs but also improved staff unity and patient care quality.
Regaining Control and Efficiency over Contingent Labor
With Hallmark’s platform, Norton regained rate control and improved visibility into labor management. The platform enabled Norton to reduce average rates by as much as 24% shortly after implementation. This significant reduction in labor costs was achieved without compromising on the quality of care. The transition from the MSP to Hallmark’s platform brought operational benefits, streamlining processes, and enhancing overall efficiency. Norton’s management team could make more informed decisions with real-time data and insights provided by the platform.
Expanding the Labor Market to National Nursing Talent
Norton’s successful conversion of external travelers to internal staff marked a significant achievement. Additionally, Hallmark’s platform allowed Norton to expand its labor market from local to national levels, broadening the pool of available talent and enhancing workforce flexibility. By tapping into a national talent pool, Norton could fill staffing gaps more efficiently and ensure that they had the best possible candidates for each role. This expansion also provided opportunities for clinicians across the country, enhancing Norton’s reputation as an employer of choice.
A Sustainable and Long-Term Solution for Healthcare Labor Management
Hallmark’s innovative Einstein II platform not only addressed Norton’s immediate challenges but also provided sustainable, long-term solutions. By regaining control over labor costs, improving operational efficiency, and expanding its labor market, Norton Healthcare achieved significant improvements in labor management.
The partnership with Hallmark has set Norton on a path to continued success, ensuring they can provide high-quality care to their patients while managing costs effectively. For a detailed account of this transformation, read the full case study here.