Interim Staffing In Tough Financial Times

Many employers feel that, when financial times are tough, they need to start cutting back on spending and expenses, which often means employees as well. Truthfully, that’s an understandable position across the board, as companies need to be fiscally responsible to their organizations.

Health care is no different. Whether it’s physician’s offices, hospitals or clinics, everyone needs to keep their eye on the bottom line. One really can’t go around spending money on things that aren’t bringing in the proper return on their financial investment.

The problem with that is when hospitals start looking at departments that aren’t revenue generating and determining that they should be a big part of the cuts. It doesn’t get more problematic than looking at the accounts receivables area. Sure, it doesn’t generate any new revenue, but it’s responsible for bringing in your money, which is your facility’s life’s blood. Without cash, nothing runs. No doctors, no staff, no hospital. That’s not a good scenario.

A quick review should give you an indication of how you might use interim staffing, along with your own, for at least short term projects. First, determine how many bodies you actually have working on billing. Divide that number into your monthly cash. That gives you a quick down and dirty figure of what each billing person is worth to you at that moment.

Next, take that same amount and divide it into your previous 3 months worth of revenue. That tells you how much they’re worth to you in new outstanding receivables.

Then look at your receivables over 90 days. If it’s under 30%, you’re doing pretty well. If it’s more than 50% of your entire receivable, you could use some staffing help. At that point, it depends on how fast you want to get out of distress in determining how many people you need. Start with half of your staff for 3 months as a guide and proceed from there.

That should get you caught up, but remember that old receivables don’t always equate to the equivalent in cash. But the interim staff will bring your receivables down, and you will see your cash go up. And at that point, you’ll have a better idea of where your facility lies financially.

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