Joint Venture Model
Over the years, numerous healthcare organizations have established internal “agencies” for the purposes of reducing both the cost and administration of contract labor. While significant operational efficiencies are typically realized in the first few years of the hospital sponsored “agency”, in many cases, over time, the ability of such agencies to meet the growing demand of their client, the hospital, is compromised. In these cases there are usually three reasons for decrease in active fill rates; 1) the contract labor market in healthcare has been growing at double digits annually and the ability to attract and retain top talent is a constantly moving target. Hospital agencies are not designed to tackle this dynamic $12 billion dollar industry that changes daily. 2) although reducing the cost of labor is a worthy and valuable objective for any healthcare entity, the best place to incur significant savings is in the mark-up of labor, not the labor itself. 3) effectively managing a very fragmented but productive workforce requires a technological solution that is geared to the “part-time”, or “just-in-time” workforce. Although most large IT solutions for HR include the ability to assign workers as “non-employees” or “contract labor”, few if any have the actual tools to run a full time, daily scheduling, monitoring, and payment system for these workers. Across the country, increased acuity, coupled with extreme census fluctuations are putting more pressure on existing systems to accurately meet staffing needs with qualified staff.
Halo’s joint venture model infuses industry professionals to address the ever-changing nature and needs of the contracted healthcare worker. Halo assists the facility in remaining “market neutral” over time for the successful acquisition of caregivers, while establishing the same operational savings. As a significant owner in the joint venture, the facility is able to significantly cut into the “mark-up” of labor without adversely affecting the market rates of pay to the caregivers.
If you have the equivalent of 10 (ten) or more contracted laborers in your system, you are already paying enough in mark-ups to fully fund the joint venture and begin taking serious bites out of current mark-ups. Sound easy? It is. Take a look.
Note: Joint Venture agreements are subject to both state and federal regulatory entities and must adhere to specific guidelines pursuant to anti-kickback, fraud, and other regulations. Halo has template documents to assist your counsel in theses areas.