Contract labor and why it is Expensive



Contract labor and why it is Expensive

QUESTION
Assignment Description:

Only need to answer the following questions. Please answer each question separately. Please do not write on giant paper for all the questions. Please answer each questions (in question and answer format) and send it back to me ASAP!!!!

Just answer each question with one or more source. Write 250-300 words for each questions. Make sure the reference is suitable for APA format. use journal article or any source acceptable by APA 7th format.

Please answer these two questions and send me ASAP. Once you send me the answer for these two questions, you can write the answer for other questions and send me. But I need help with these two questions first.
• Contract labor is usually the most expensive man-hours. Why?
• What is a cost-to-charge ratio? Why should a nurse manager understand this ratio, and how would he or she use it?

Other questions that needs to be answered.
What is it important for a nurse leader to understand variance reporting? How does this reporting become a valuable tool?
• Because staffing is usually the most expensive resource in the provision of care, what reports would provide you with valuable information for this expense?
• Finance departments regard nursing units as not being revenue generators. Why do you believe they are inaccurate in their assessment?
• In the new value-based reimbursement environment, what other measures can a nurse manager take to enhance reimbursement and prevent revenue loss?
Contract labor and why it is Expensive

ANSWER
Nursing

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Contract labor and why it is Expensive
Contract labor in nursing refers to the work terms whereby the terms restrict the freedom of the nurses that the contract relation described based on the laws that are used to guide such arrangements; the laws are always permissible and enforceable as per the rules and regulations that region. A nurse’s contract labor covers a specified period and can be with healthcare providers working for for-profit or non-profit organizations; it can also be for hospitals or a given private practice in a region. Several nurses’ sign labor contracts because of personal reasons for example, traveling nurses and dialysis nurses are often known to sign contracts that enable them to pursue other private projects (Vainieri et al., 2019). An offer is given to the nurses, and after an agreement with the terms, they accept to get into the agreements after a collective bargain.
Contract labor terms of hiring employees usually occur when the hospital, in many cases, does not have any choice rather than hire more contract labor because they experience a shortage in nurses for care provision and allied healthcare professionals. Contract labor is expensive because it increases hire labor costs, and personnel spending also increases. Since the great recession in the USA, there have been increasing levels for demands of quality requirements, hospitals venture into various new missions, the number of the aging population has increased, and consumerism (Foster et al., 2019). Since hospitals and other healthcare organizations cannot hire every employee on permanent terms, contracts become the only option.
For this reason, contract labor has become very expensive because many hospitals and healthcare organizations lack options apart from maintaining adequate staff by turning to contract labor. The higher demands for more staff make it most expensive because of the terms the employees are given contracts. Again, the cost of labor has significantly increased across the country. Higher labor has become majorly driven by the contract labor utilization within the sector because it has significantly increased from 1 percent to more than 5 percent between 2019 and 2022. Wage rates for the contract nursing staff are high and have increased over the past years; for example, the median hourly rates for the nurses increased from 35 dollars to 39 dollars from 2019 to 2022; these dramatic wage changes make the contract labor very expensive.
Cost to charge Ratio
Generally, the cost to charge Ratio in the hospitals is used to establish the simple Ratio between the cost and the charges used to run and offer care services within the hospital facility. The cost to charge ratio generally applies to acute inpatient and outpatients services. Cost charge ratios are calculated from data in hospital cost reports, and they are dependent on total hospital payers and Medicare specifics. The calculation of the CCR is essential for the nurse manager to establish the clean-up cost reports. To calculate the hospital or facility’s specific CCR, they can check for any possible missing values and establish the facility’s costs (Laratta et al., 2017). The nurse manager also uses the cost to charge ration to save the resource for the facility; it also ensures that the hospital or facility keeps every detail of the information well taken care of.
The process of calculating the CCR requires to keep utilization of every significant information that the facility record. Since it requires much information, it ensures that the nurse manager also operates within the budgets that the facility can afford and optimizes the utilization of resources to realize significant profits (Xu et al., 2018). The nurse manager can use the insight provided in the CCR to optimize the utilization of resources within the facility and reduce any waste of resources that may occur within the facility. Overall, the reports should ensure that the patients are protected from potential medical errors due to lack of resources or negligence and should ensure that there are no health care disparities recorded within the facility. The CCR is also very important to ensure that the facility nurse manager balances the nurse-patient ration for optimal delivery of quality care services.

References
Foster, C. C., Agrawal, R. K., & Davis, M. M. (2019). Home Health Care for children with medical complexity: Workforce gaps, policy, and Future Directions. Health Affairs, 38(6), 987–993. https://doi.org/10.1377/hlthaff.2018.05531
Laratta, J. L., Shillingford, J. N., Lombardi, J. M., Mueller, J. D., Reddy, H., Saifi, C., Fischer, C. R., Ludwig, S. C., Lenke, L. G., & Lehman, R. A. (2017). Utilization of vertebroplasty and kyphoplasty procedures throughout the United States over a recent decade: An analysis of the nationwide inpatient sample. Journal of Spine Surgery, 3(3), 364–370. https://doi.org/10.21037/jss.2017.08.02
Vainieri, M., Smaldone, P., Rosa, A., & Carroll, K. (2019). The role of collective labor contracts and individual characteristics on job satisfaction in Tuscan nursing homes. Health Care Management Review, 44(3), 224–234. https://doi.org/10.1097/hmr.0000000000000177
Xu, F., Liu, Y., Wheaton, A. G., Rabarison, K. M., & Croft, J. B. (2018). Trends and factors associated with hospitalization costs for inflammatory bowel disease in the United States. Applied Health Economics and Health Policy, 17(1), 77–91. https://doi.org/10.1007/s40258-018-0432-4


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