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DirectShifts Cost-Effective Healthcare Staffing Model

Challenges in Healthcare Recruitment During COVID-19

During COVID- 19, nearly all hospitals and healthcare systems saw an increased demand for labor and supplies, which led to an increase in operating expenses and a significant decline in revenue. The Cares Act was therefore passed to include several provisions designed to ease the financial burden on hospitals and healthcare facilities amid the COVID-19 pandemic. Now that the Cares Act has expired, many healthcare facilities are left without the necessary staff and coverage and cannot afford or compete with the higher "market" rates. 

These factors resulted in increased labor costs, which are entirely unsustainable. As a result, many healthcare organizations have to adopt less expensive staffing models for healthcare professionals. Healthcare facilities have developed a variety of models with strong effects. From simple strategies such as adopting employee engagement programs to a flexible staff model, healthcare institutions have found solutions to support healthcare workers while also incurring costs.

A recent survey reported that healthcare facilities spent 130% more on agency contracts and temporary labor as of September 2021 than pre-pandemic. It also noted that these labor sources cost 50% more than employees.

Challenges in Healthcare Recruitment Post-COVID-19

In the current scenario, healthcare industry workers demand more flexibility in how, where, and when they work. While COVID-19 has accelerated the telecommuting trend, the gig economy has led to a new on-demand workforce. On-demand clinicians form the basis of a flexible staffing model. 

Flexible options allow healthcare facilities to match the right healthcare worker with the right patient at the right time without leading to an increase in labor costs. So, instead of staffing at 90% capacity, which is hard to do during a labor shortage, healthcare facilities fill up to 60% on a per-diem basis. 

The Cost-Effective Healthcare Staffing Model

DirectShifts has designed an on-demand staffing model that completely removes agency overtime and cuts reliance on travelers by using a local pool of candidates. It is an AI-based model that helps healthcare organizations cut their costs by 40% immediately, so you don't have to get locked up in long-term contracts and can maintain the flexibility to meet the ebbs and flows of patient demands at the same time.

We connect healthcare employers directly with clinicians. Thus, helping healthcare facilities lean on technology-enabled platforms like DirectShifts, which helps them hire healthcare staff 10 times faster.

Save at least $600,000 per month, or $7.2 million per year, and improve annual ROI.

With a financially sustainable model, DirectShifts creates an "Uber-like" experience for healthcare employers who can easily find pre-verified and pre-credentialed candidates from a pool of 850,000+ clinicians at nearby locations. When you need support, you've got DirectShifts' team to help streamline your administrative tasks of setting standard rates, credentialing, training, onboarding, timesheets, billing, etc at your fingertips 24*7. 

Our flexible staffing model that leverages on-demand talent and technology is one of the most effective ways to staff your healthcare facility while supporting healthcare professionals. Combine this with other cost-effective healthcare staffing models to train your healthcare staff. This will improve employee retention, and your healthcare facility will have a winning model for your business and your people.

This model has also been featured as DirectShifts' On-demand Staffing Model helps Healthcare Facilities cut their labor costs up to 35% 

Visit here to understand more about our Staffing Model: Employer (


Post by Saniya Mahajan
July 12, 2022


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