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Understanding Professional Employer Organizations [ PEOs]
By Eric Galtress
www.BusinessofMedicalPractice.com
One way to improve human resources [HR] is to recruit physicians, nurses, technicians, allied healthcare providers and other hospital personnel who bring in a certain expertise and disseminate it to other employees.
Hospitals, larger practices and medical clinics are increasingly hiring materials managers from other industries, for example, to upgrade their materials management capabilities; so why not medical and other related professionals, as well?
Hospitals Lag Conventional Industry
And, hospitals often lag far behind other industries with regard to professional human resource activities. For example, hospitals can hire personnel with experience in other professionals settings in order to gain new perspectives in physician management and leadership. With these new perspectives, agreements with doctors and other providers can be renegotiated to make a hospital or clinic more competitive.
Internal Recruitment
Internally, improving the financial performance of any healthcare organization is a skilful balance between cinching the belt and investing in the right growth strategies. Whether that strategy calls for expanding a clinic, moving into a key market, or adding a new clinical program, recruiting the right physicians and medical personnel becomes all important in achieving economic goals. Without physicians and ancillary personnel there are no patients. Indeed, doctors, nurses, and providers are key drivers in any healthcare organization’s growth strategy.
Simply put, finding and hiring the right medical professionals is a surefire prescription for success. A winning centralized operational process includes: needs and criteria determinations; materials for sales, marketing and recruiting; interviews and onsite visits; and the correct reimbursements package with employment contract.
External Recruitment
External recruitment, on the other hand, may involve use of a professional employer organization (PEO) as hospitals and healthcare entities may find that employee leasing, also referred to as co-employment, can be an effective strategy to combat the spiraling costs of having a professional recruitment and clerical support staff. PEOs can offer financial and administrative benefits to hospitals, which in turn, can increase staff loyalty and reduce turnover. Office-based physicians will find that the personnel services of an employee leasing company will give them more time to address the efficiency of their practices and the quality of care they provide for patients.
Simply put, instead of the healthcare organizations, clinic, hospital, or practitioner being the employer of record of the workplace employees, this responsibility is outsourced to an off-site PEO that specializes in hiring, retention, labor management, and cost control.
Assessment
In a PEO, the healthcare organization retains functional control of the employees, and the PEO handles the HR management issues. The PEO can provide these HR services more cost effectively by combining employee groups and servicing their needs along with the employees of the many other healthcare organizations they already serve. Outsourcing becomes a matter of simple economics.
Conclusion
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Filed under: Career Development, Practice Management | Tagged: Hospital Personnel and Physician Recruitment, Hospital Recruitment, PEOs, Physician Recruitment |
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Medical practices are expected to add jobs in the immediate future, according to government surveys. But, how do you know if the time is right to hire more staff members? There are several signs that it is time for a practice to add full-time staffers, such as when patients complain about how long they are placed on hold when they call in. When they call, can they get through on the first try? Are physicians complaining that patients are not in an exam room when they are supposed to be because staffers are weighed down with other duties? Have physicians been added to a practice, and do they have the support to do their jobs? Have new service lines increased patient volume?
Looking at benchmarking data from organizations such as the Medical Group Management Association [MGMA], and our new book, may offer insight into appropriate staffing levels. Practices with more than one office also can create their own benchmarking data by comparing the workflow of each office.
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