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Despite the rapid rate of consolidation in the healthcare market, staffing shortages continue to plague care facilities across the U.S. Because facilities are short-staffed, physicians and care providers are working longer hours, spending less time with patients, and spending more time logging clinical data into electronic health record (EHR) systems. All of these factors are contributing to physician burnout.
Burnout is largely fueled by increased reporting demands and widespread adoption of EHR systems and other technologies, such as telemedicine and patient portals. New technology implementations require user training, pulling staff away from patients and necessitating the hire of locum tenens staff and other contracted labor.
We’ve compiled a list of the top hospitals reporting the greatest spending on contracted labor in 2017, the most recent reporting year available. Of the 25 facilities listed, 19 are part of the Kaiser Permanente Health System. In 2017, Kaiser saw dramatic growth, which could be a contributing factor in labor expenses. With a 10 percent membership increase, the health system likely hired locum tenens staff while holding trainings on policy, reporting standards, and technology for new member facilities.
None of the remaining six facilities were members of the same health system at the time of reporting.
Top 25 Hospitals by Contract Labor Spend
| Hospital Name | Contract Labor Spend | Number of Discharges | Number of Staffed Beds | |
|
1. |
Mayo Clinic Hospital - Saint Marys Campus (MN) |
$196,632,765 |
55,689 |
1,186 |
|
2. |
Kaiser Permanente - Fontana Medical Center (CA) |
$131,782,553 |
31,539 |
626 |
|
3. |
Kaiser Permanente - Los Angeles Medical Center (CA) |
$131,430,479 |
23,702 |
460 |
|
4. |
Kaiser Permanente - San Leandro Medical Center (CA) |
$123,021,408 |
12,092 |
206 |
|
5. |
Kaiser Permanente - Oakland Medical Center (CA) |
$122,596,188 |
20,430 |
365 |
|
6. |
Kaiser Permanente - Zion Medical Center (CA) |
$120,674,466 |
24,802 |
556 |
|
7. |
Kaiser Permanente Santa Clara Medical Center (CA) |
$99,327,714 |
19,691 |
327 |
|
8. |
Kaiser Permanente Roseville Medical Center (CA) |
$98,929,695 |
23,364 |
336 |
|
9. |
Kaiser Permanente South Sacramento Medical Center (CA) |
$96,226,976 |
15,945 |
217 |
|
10. |
Kaiser Permanente Sacramento Medical Center (CA) |
$90,213,568 |
11,788 |
287 |
|
11. |
Kaiser Permanente - Downey Medical Center (CA) |
$83,545,614 |
16,554 |
352 |
|
12. |
Kaiser Permanente - Manteca Medical Center (CA) |
$66,515,202 |
11,167 |
213 |
|
13. |
The Johns Hopkins Hospital (MD) |
$66,273,161 |
45,086 |
1,007 |
|
14. |
Kaiser Permanente San Francisco Medical Center (CA) |
$65,339,876 |
11,973 |
239 |
|
15. |
Kaiser Permanente San Jose Medical Center (CA) |
$63,000,546 |
11,446 |
235 |
|
16. |
Kaiser Permanente - Baldwin Park Medical Center (CA) |
$62,782,808 |
11,364 |
257 |
|
17. |
UPMC Presbyterian (PA) |
$60,688,190 |
51,490 |
1,181 |
|
18. |
Kaiser Permanente Walnut Creek Medical Center (CA) |
$59,610,746 |
11,957 |
233 |
|
19. |
Kaiser Permanente Vallejo Medical Center (CA) |
$55,393,474 |
8,911 |
200 |
|
20. |
Grady Hospital (GA) |
$50,184,956 |
32,252 |
646 |
|
21. |
UCHealth University of Colorado Hospital (CO) |
$49,926,457 |
31,207 |
634 |
|
22. |
Kaiser Permanente - South Bay Medical Center (CA) |
$49,099,932 |
10,240 |
293 |
|
23. |
Kaiser Permanente Santa Rosa Medical Center (CA) |
$48,821,923 |
9,958 |
173 |
|
24. |
Kaiser Permanente - West Los Angeles Medical Center (CA) |
$47,957,948 |
8,564 |
265 |
|
25. |
Banner - University Medical Center Tucson (AZ) |
$47,132,301 |
21,277 |
479 |
Fig 1. Data from Definitive Healthcare based on combined net patient revenue reported by IDN member hospitals from fiscal year 2016, the most recent data available. Number of discharges based on compilation of reports from IDN member hospitals.