Not astoundingly, hospital care is a huge driver of general healthcare expenditure growth, accounting for 33 percent of each healthcare dollar disbursed. However, what is the main factor is responsible for spending growth in hospital patient care? The answer is labour cost. Sertkaya, Wong, Jessup, & Beleche (2016) observed "The Cost of Caring." The increase of labour cost is responsible for 35 % of the entire growth in hospital costs. Hospitals are facing a crisis in dealing with the present shortages of technicians, pharmacies, registered nurses and other clinicians. Sertkaya et al. (2016) observed, "Continued workforce shortages during a period of rising service demand likely will put further cost pressure on hospitals." This paper will identify three key drivers of labour costs in Yale-New Haven Hospital, facility, or other health sector-related occupation. Also, the paper will depict future changes that the company that might exacerbate or accelerate the solutions.
Drivers of Labor Costs Within
Labour supply
When the labour supply of medical practitioners in Yale-New Haven Hospital is low, that means that the cost of hiring medical practitioners will be high since they will demand more salary because they know the hospital has no any alternative but to spend. Labour supply works on the same concept of demand and supply which states if the supply is high the prices of a commodity drops and when demand is low then the pieces of the commodity escalates (Sertkaya et al. 2016). Also, wages play an important role in attracting medical practitioners; high wages attract experienced nurses who offer quality services whereas low salary or wages attract less medical practitioners. Being one of the top hospitals in America Yale-New Haven Hospital has to spend more money to attract qualified and registered medical practitioners.
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Productivity improvement
To improve productivity, each employee of America Yale-New Haven Hospital must be able to produce more output. The only way the hospital could attain improved productivity is through increasing either human capital or physical capital. For Yale-New Haven Hospital to increase its Physical capital, it has to purchase buildings or machinery that will help to increase the output of medical practitioners. For instance, if one PCR Thermocycler can analyse 50 blood samples at a time, Yale-New Haven Hospital can buy a PCR Thermocycler that can analyse 100 blood samples at a time. Therefore, Yale-New Haven Hospital would have increased output of laboratory technicians by availing new equipment that can do many could do more tasks. On the other hand, human capital is important; it entails increasing the output of medical practitioners through re-training ( Baghai, Silva, Thell, & Vig, 2017) . For instance, if a doctor can screen three cancer patients in an hour, the doctor can increase his or her output by undergoing re-training to increase his or her human capital.
Technology
Technology is one of the key drivers of labour costs; it has reduced immensely the cost of labour that Yale-New Haven Hospital incurs each year. Activities in Yale-New Haven Hospital have been automated, and robots have assumed some responsibility at the hospital. This not only helped in decreasing labour cost but it has helped to increase efficiency (Sertkaya et al. 2016).
The Current Industry Solutions or Remediation Activities to Address the Labor Costs.
Labour supply: The government should encourage and sponsor many students to enrol in medical courses to boost the workforce in the medical sector ( Baghai et al. 2017) .
Productivity improvement: Re-train medical practitioners by organising workshops and seminars to enhance the skills to enhance human capital. Also, many hospitals have purchased machines that serve a large portion of patients.
Technology: Automate every aspect of the hospital to reduce redundancy of workforce.
Future Changes That might exacerbate or accelerate the solutions
Policy
The government should implement policies that support students that are willing to pursue medical courses; this policy might include offering a full scholarship for a student who pursues medical courses ( Baghai et al. 2017) .
Funding
The government should ensure that hospital is funded so that it can secure modern technologies that would serve many patients at a time. This will help to maximise ton the human capital (Sertkaya et al., 2016).
References
Sertkaya, A., Wong, H. H., Jessup, A., & Beleche, T. (2016). Key cost drivers of pharmaceutical clinical trials in the United States. Clinical Trials, 13(2), 117-126.
Baghai, R., Silva, R., Thell, V., & Vig, V. (2017). Talent in distressed firms: Investigating the labour costs of financial distress.
