When you line up all of the treatment cent out there, how are they different? The funding sources are finite; PE-backed, publicly traded, government funding or privately held. The model has some variability; size, scale, quality, outcomes, or M&A strategy. Each of these factors contributes to their identity in a variety of ways. The other (and most important) variable is human capital or talent, which is arguably infinite but also temporary. In fact, within a market, many of the same staff (e.g., techs, nurses, directors, C-suite, etc.) rotate through each of the facilities over the course of time. To that end, patients that have multiple admissions will generally end up going through a variety of the facilities in that market as well. So what is different?
The cost of labor is approximately the same (give or take), the reimbursement rates are approximately the same, but what each organization does to cultivate talent is a complete differentiator. Cultivating human capital has become increasingly important in today's healthcare industry, and unique and current strategies are emerging to meet this demand. One such concept is the gig-economy in healthcare, which involves creating an economy where staff can cross-train in other departments and work outside their primary duties. Antiquated positions on this hold that one must work only in the duties they are hired for. That perspective is outdated and modern staff want the opportunity to work on a flexible schedule and maintain a work-life balance, which is a significant factor for Gen Z employees seeking job satisfaction. It doesn't mean they need to work from home but just that adopting some of the options that exist in today's workforce will allow you to compete. (see image below)
For long-term employees, it's important to emphasize career paths rather than just jobs. Providing programs for training and leadership development can encourage employees to see a future with their organizations. Providing a robust employee benefits package and a culture focused on well-being can also help attract and retain a talented workforce. Employees want to feel fulfilled and engaged in their work, and organizations that provide opportunities for growth, flexibility, and balance can prime themselves to attract the best of the best. If your only strategy is to pay more, you will find yourself with high-turnover and poor outcomes.
You can't just build or open a bunch of treatment centers and not have a plan beyond your financial projections. Instead, your projections must include a line-item addressing your initiatives to work force differentiation. After all, in the addiction and mental health treatment space, the "product" is the people and the people are the "product." With so few areas for differentiation, an organization has to commit to where they will invest. The answer is and always was in the area of talent. However, the menu of items that area available have been updated. What are you doing to focus on your investment in human capital?
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