In an industry where tech advances have traditionally been focused on medical devices, one entrepreneur is using technology to drive down costs in healthcare.
Standalone hospitals with a human resources department interviewing doctors, nurses and staff for hiring is a model that’s rare in the United States. In today’s healthcare industry, healthcare systems are spread out across multiple hospitals and clinics making the process of hiring a complex process.
Labor costs in healthcare are the single largest expense representing over 60 percent of costs, one that is driving the cost of healthcare in the United States.
Jill Schwieters, the founder and president of Cielo Healthcare, headquartered in Milwaukee, Wisconsin, has disrupted healthcare recruitment to drive down costs and creating a new standard for hiring in the healthcare industry.
The method introduced by Cielo Healthcare to help drive down costs is called recruitment process outsourcing. This process allows expert recruiters to match the right candidates with the right positions, which in turn helps save hospitals millions.
Schwieters said the hardest challenge is getting hospitals warmed up to the idea of change.
“The greatest challenge has been getting hospitals to think differently about how they recruit,” Schwieter said in a written statement. “Taking a proven practice from other industries and customizing it for healthcare organizations was an obvious approach. But change is hard and the healthcare industry tends to be slow to change and risk adverse.”
According to a team of Vanderbilt University nursing researchers, one of the biggest problems for hospitals is nursing shortages.
The study showed 1.2 million vacancies will emerge for registered nurses between 2014 and 202. By 2025, the shortfall is expected to be “more than twice as large as any nurse shortage experienced since the introduction of Medicare and Medicaid in the mid-1960s.”
Another issue hospitals face is RN turnover rates, which can also drive up costs to hospitals making a huge impact on a hospital’s profit margin.
Schwieters said Cielo Healthcare’s process alleviates the problem by hiring the right person the first time which in turn reduces the cost of turnover and retains the best talent to care for patients.
Additionally, by filling these positions faster and more effectively Cielo Healthcare reduces the costs of overtime, external agency, premium pay and bonuses hospitals have to pay to address their staffing shortages.
Steven P. Johnson, Health First president & CEO, said Schwieters’ expertise has given his company not only time savings but also saved the company $3 million in retention.
“Prior to our partnership with Jill and her team at Cielo, our leaders were tasked with all aspects of recruitment, from reviewing resumes to setting up interviews and then conducting them,” Johnson said in a written statement. “That in itself is very time consuming and doesn’t even touch on the onboarding process once an applicant is hired. Tapping into Jill’s expertise is not just a time saver, but a cost saver. New hire and manager satisfaction rates have significantly improved, as well as our retention numbers. We’ve seen at least $3 million in savings from an improved retention rate alone.”
Schwieters added that her favorite aspect of her job is solving some of the toughest challenges facing the healthcare industry.
“Serving the healthcare industry and making a difference is the best part of my job. I get to work with leaders who are committed to improving healthcare outcomes and partnering to solve today’s toughest challenges,” she said. “Organizations that are serious about reducing costs, hiring the best staff and working in collaboration with Cielo Healthcare are what make my job great.”