New Study Spotlights $3.9 Billion Overspend in US Healthcare
LOUISVILLE, KY, July 21, 2005 – A study released today by American
Hospital Directory Inc. (ahd.com) suggests that as much as half of the
$7.8 billion spent by American hospitals on contract labor could be
saved through better management. The finding is one of several startling
conclusions prompted by the report, Trends in the Use of Contract
Labor among Hospitals.
With ballooning costs pushing America’s healthcare system toward
full-blown crisis, rigorous financial analysis of our healthcare
delivery system is more important than ever. Since personnel expense
typically consumes more than half of a hospital’s operating revenue, and
contract labor is significantly more costly than salaried staff, the use
of contract labor in our hospitals represents a key metric in assessing
the big picture of American healthcare.
“Staffing an American hospital with skilled and experienced workers is
more difficult than ever,” says Paul Shoemaker, CEO of American Hospital
Directory. “We put together this study to help hospital management and
the public get a better understanding of the dynamics of this problem,
along with some possible solutions.”
In addition to analysis of current and historical data, Trends in the
Use of Contract Labor among Hospitals contains a case study of an
integrated healthcare company that has faced its staffing problems head
on and achieved positive results through the innovative solution it
created.
American Hospital Directory published its first contract labor study in
August 2004 using data through 2002. The study released today is the
second in this series of reports, and incorporates data through 2003 and
preliminary data for 2004.
The full report, Trends in the Use of Contract Labor among Hospitals,
may be downloaded (free) from www.ahd.com
About American Hospital Directory
American Hospital Directory has been providing the operating details of
virtually every hospital in the United States as a free on-line service
since 1997. On-line reports describe a hospital’s general
characteristics, services provided, financial information, volumes,
average lengths of stay, average charges and much more. A free service
is provided to thousands of users daily. Custom data services are also
available. For more information on free and subscription services, visit
www.ahd.com
| Contacts: | Barbara Eilert Phone: (502) 396-2637 Email: barb@evokeinc.com |
| George Daffin Phone: (502) 558-2196 Email: george@evokeinc.com |
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