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The Business of Health Care Report
On today's show, I will discuss how
increasing labor costs are putting the pinch on health care. Compensation for hospital workers is
the single largest expense for health care systems such as Texas Health Resources. In fact,
the most recent industry data available, compiled by Price Waterhouse Coopers late last
year, shows that almost 60 percent of hospital costs go to wages and benefits for hospital
employees. It's no secret that hospitals are
labor-intensive facilities. For example, as many as 12 people are involved in patient
care for a colonoscopy -- from admitting to pre-op to recovery. But, health care's labor costs have
soared over the last few years, mostly due to supply and demand. Between 1997 and 2001,
hospital wage and benefit increases nearly tripled nationwide, according to the same
Price Waterhouse Coopers report. By 2001, the average hourly wage for a hospital employee
was about $18 per hour. Much of this increase has been fueled
by increased demand for nurses, who have several employment options besides hospitals,
including private practice, managed care companies and home health agencies, and by the
overall nursing shortage. THR alone will need to hire hundreds
of nurses in the next few years to keep up with expected demand. Statewide, it's estimated
that Texas needs to add almost 28,000 nurses to catch up with the national average of
nurses per 100,000 population. There also are shortages of radiology
techs, pharmacists, physical therapists and other specialized positions. And, because of the growing population
of North Texas and needed hospital expansion, labor costs in this area will likely continue
to grow as a percentage of a hospital's overall costs. For Texas Health Resources
and its family of hospitals - Harris Methodist Hospitals, Presbyterian
Healthcare System and Arlington Memorial Hospital - I'm CEO
Doug Hawthorne
with "The Business of Health Care Report" on NewsRadio 1080 KRLD.
©
2003 Texas Health Resources |
I'm Doug Hawthorne, President and CEO of Texas Health Resources, with
"The Business of Health Care Report" on 