Leveraging the Contingent Workforce as a Strategic Element of Talent Acquisition
People in Healthcare Summit 2018 | March 21, 2018
Today’s Presenters
Leanne Oatman President & Co-Founder
RightSourcing
Christopher Henry Vice President of Talent & Change
Management Sutter Health
Serving More Than 100 Communities With: • 12,000+ physicians • 54,000+ employees
~15,000 RNs • 24 acute care hospitals
Licensed beds: 4,311 Births: 33,749 Discharges: 193,161 ED Visits: 873,992
• Home Health Visits: 519,703 • Hospice Visits: 217,084 • Sutter Health Plan • $12 billion in revenues (2016) • Community Benefit: 2016 $669M
Sutter’s Mission We enhance the well-being of people in the communities we serve through a not-for-profit commitment to compassion and excellence in health care services
Sutter’s Vision Sutter Health leads the transformation of health care to achieve the highest levels of quality, access and affordability
Community impact, national leadership
Pioneered Contingent Workforce Management Solutions for Hospitals and Healthcare Systems
Vendor Neutral MSP Unmatched Compliance Expertise Clinical & Non-Clinical Labor Expertise Best-in-Class Technology & Workforce Analytics Customized Service-Delivery $2.5B+ Under Management Across 250+ Locations National Network of 2,600+ Suppliers
Top Vendor- Neutral MSP by
Healthcare Spend
The Joint Commission Certificate of Distinction
Ranked #1 for Contingent Workforce
Management
Staffing Suppliers & Volunteers
Single MSA for all vendors
Requisition Oversight
Vendor Management
Worker Credentials Audits
Onboarding Optimization
Automated Time/Expense
Consolidated Invoicing
Best Practices
Contractor Compliance
RFI Automation
Market Intelligence
Strategic Analytics
Streamlined Contingent Workforce Management
Improve Worker Quality Increase Process Efficiencies Mitigate Risks Reduce Costs
Independent Contractors
Statement of Work
Healthcare Talent Supply & Demand Shifts
Next Decade in Healthcare*:
Growth Service Demand > 10% GDP Jobs >15%
Shortages
> 45,000 Primary Care Physicians > 46,000 Surgeons + Medical
Specialists
Technology Skills Gap > 50% *Sourced from H. Landau, CEO - First Health Pro Inc. & T. McDonough, CEO – Strayer@Work
FTE Fill Fatigue Factors
25% of U.S. workforce are
Millennials, with 1:3 freelancing
The healthcare industry is becoming the largest employment sector in
the U.S. and will account for one-third of the nation’s job growth
by 2024
In 2016, a reported 50% of healthcare jobs
across the nation went unfilled
51% of FTE workers not engaged with jobs & commonly burn-out
Sourced from nonprofit HR
Sutter Health Opportunity
25% Turnover in critical areas of
nursing
Hard-to-fill specialty
experience nationally
Over $190M annual contract
labor spend
Initial Sutter Health Challenges
Too Many Suppliers /
Agreements
De-Centralized Management
Lack of Internal Expertise
No Contingent Workforce Visibility
Not Leveraging Economies of Scale
Inconsistent & Inefficient Processes Data Analytics &
Workforce Planning
2013
2014
2015
2017+
2016
Successful Implementation Central Valley,
followed by EBR, IS & SPS
772 Legacy workers and 180 workers
placed
Growing Adoption Five more regions
live 1,551 workers
placed Successful Expansion Bay Area
Nursing & East Bay
3,095 workers placed
Program Optimization
Sac Sierra Nursing & Sutter
Coast added 3,634 workers
placed
Strategic Partnership Ongoing discussions to
optimize the MyTempStaffing
program
MyTemp Staffing Timeline
Holistic View of Workforce
Customized Dashboards
Track Key Success Drivers
Sutter gained visibility to the enterprise-wide temporary workforce.
Dashboards customized to provide actionable insights that are important to Sutter.
Allowing Sutter to: • Compare costs across all worker types, job titles,
locations, etc. Know when, where and how to source cost-effectively.
• Determine why workers come and go. Leverage data to create new strategies to attract / retain top talent.
• Identify trends / outliers in data. Pinpoint gaps or areas of opportunity.
Gaining Workforce Visibility
Department with EEOC, FLSA, Co-Employment Expertise
Compliance/Credentialing Team of 5 dedicated Compliance Analysts for Sutter Health
Standardized Contract Terms for Suppliers
Validation/ Monitoring of Supplier Insurance Certificates
Former IRS Auditors and Insurance Specialists
1099/IC Worker Classification Audits
• Since program go-live RightSourcing has participated in 26 audits with 100% compliance
Contract and Compliance Consistency
• Since go-live 1,026 workers have been converted to full time, resulting in a 9.5% conversion rate
• Generating an estimated $5.2M in cost-savings
Workers Converted to FTE
2017 Q1-Q2
400
2013 2014 2015 2016
28
137
345
116
Self-Sourced Eligibility for Rehire 2014 96%
96%
95%
92%
2015
2016
2017
2014
Optimizing Workforce Quality
• Self-sourced workers driving high worker quality scores and cost savings
Self-Sourced Talent Pools
High Worker Quality
FTE Conversions Cost Savings
Rapid Response Hours Utilization 2014 – Q1 2015
Cost Savings through Lower Rates
• RightSourcing implemented demand planning procedures allowing optimal time to source workers at competitive rates
• Reduced utilization • Estimated $16.7M* in savings for 2015 and 2016 combined
Eliminated Rapid Response
$2.4M in Cost Avoidance
COST SAVINGS
STAFFING PLACEMENTS
Percent of workers completing assignments eligible for rehire
QUALITY RESULTS
Compared to 2016 average
DECREASED NURSING TIME-TO-FILL
$7.7M 92%
3,327 6.3 Days
Highlights
2017 Program Results
Sutter Health-RightSourcing program has driven $35.7M in cost savings and avoidance since go-live in Q3 2013 through:
Market-rate benchmarking Competitive-bidding on all requisitions Resource forecasting to eliminate rapid
response rates Reduction in orientation Overtime reductions Self-sourced talent pools No-fee FTE conversions Process efficiencies
Value Through Cost-Savings
$3.4M
$7.3M
$9.3M
$7.7M
$1.1M
$2.1M $2.5M $2.3M
K
$1M
$2M
$3M
$4M
$5M
$6M
$7M
$8M
$9M
$10M
2014 2015 2016 2017
Cost Savings Cost Avoidance
Private Talent Network Your Network. Your Talent. Your Savings. By leveraging Sutter Health’s strong employer brand, RightSourcing’s Wand VMS technology is helping to build a Private Talent Network of workers exclusively for Sutter Health - including alumni, retirees, ‘silver-medalists’, referred workers, etc. Sutter hiring managers will leverage this functionality to easily identify, engage and assign quality talent in a very short amount of time – and with cost-savings of 10% – 20%.
Workforce Demand Planning
Ability to address critical planning
needs Assignments
ending in under 30 days
Planning needs can be addressed by manager, cost center, operating
unit, etc.
With key strategic decision points on workers, roles, tenure, time-to-fill, current and benchmarked rates, replacement costs, etc., the Sutter/RightSourcing program is able to optimize their workforce through a flexible
forecasting model to reduces costs, create efficiencies and improve patient care.
All-inclusive Total Talent Dashboard
SUPPLIER SCORECARDS Alignment with Sutter’s new
Operating Units
SUPPLIER EVALUATIONS Who’s In? Who’s Out? Who’s On
Watch List?
RECOMMENDATIONS RightSourcing to provide initial
recommendations and obtain Sutter approvals
SUPPLIER NEGOTIATIONS RightSourcing to facilitate negotiation
and contract adjustments based on final decisions
• Financial benefits – pricing leverage • Heightened supplier focus and engagement
• Tighter controls to increase candidate quality • Increased supplier alignment to business objectives
Supplier Optimization Framework