HR management is notoriously complex in healthcare organizations – and even more so within hospital joint ventures. Administrators are charged with handling increasingly intricate operations, from compliance standards to hiring and onboarding practices. And when admin teams become overextended, tensions run high, problems build up, and overall efficiency and morale suffer.
Outsourcing HR functions to an independent provider can ease this administrative burden and result in significant benefits for hospital joint ventures. Here are a few of the ways healthcare organizations gain a competitive advantage when they transfer HR services from full-time staff to an expert external vendor.
Cost Savings
Managing HR services, such as payroll and benefits, time and attendance tracking, and local, state, and federal compliance is onerous and time-consuming. Many admin departments simply don’t have the budget or the staff to oversee all of these tasks in-house.
A 2011 PricewaterhouseCoopers report, The Hidden Reality of Payroll and HR Administration Costs, found that the average hospital or health system spent between $1,400 and $2,000 each year per employee on managing HR functions internally. The report showed that organizations had an HR total cost of ownership that was 32% higher than those that outsourced HR services.
Healthcare organizations that outsource some or all HR duties to an experienced provider gain access to a highly trained staff without the overhead expenses. This change often reduces both their HR costs and their employees’ stress levels.
Efficiency
Contracting out HR functions helps streamline complicated tasks, such as payroll processing and ACA reporting. It allows full-time employees to hand off paperwork, knowing that it is in capable hands, so they can focus on more strategic work.
“Outsourcing your HR contributes to better overall efficiency,” said MedHQ CEO Tom Jacobs. “It takes burdensome tasks off employees’ plates and lets them focus on higher level priorities, like improving patient outcomes or employee development.”
Risk Management
Keeping up-to-date with frequently changing laws, regulations, and policies is a formidable undertaking. HR service providers specializing in healthcare stay current on all relevant issues for their clients, reducing costly risks and protecting organizations’ best interests.
Interested in outsourcing your HR? Contact us and download our newest white paper to learn more benefits.