Workforce Prescriptions

Evidence-Based, Outcomes Focused

Labor Utilization Audit™ FAQ

Find the answers to commonly asked questions here.
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Questions

1. What is the Labor Utilization Audit™?
2. What does the audit examine?
3. What is the methodology deployed?
4. How does implementation work?
5. How long does the audit take?
6. How much does an audit cost?
7. What happened to the Pay Practice Audit?
8. I don't see my question here, can I submit it?

Answers

1. What is the Labor Utilization Audit™?

   The Labor Utilization Audit™ is a service offering designed to allow an adult acute hospital to identify areas of labor waste/redundancy that can be eliminated without creating a derogatory impact on staff. The audit comes with a $1,000,000.00 annual recapture guarantee (to the bottom line) and the average return is nearly $6,400,000.00 without downsizing.

   The goal of the audit is to move away from examining, "how many people are being paid" in favor of, "how they are being paid and for what work". Successful outcomes derive from lowering the cost-per-hour of labor and overall labor need rather than from attacking people or programs.

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2. What does the audit examine?

   During the Labor Utilization Audit™, Workforce Prescriptions (WRx) examines 9 different areas of labor performance:

   • The level of productivity
   • The impact of key processes on labor utilization
   • The effectiveness of scheduling practices
   • Staffing Levels/Staff availability
   • The use of Premium Pay
   • The flexibility & portability of the workforce
   • The cause of delays in care & avoidable days
   • The impact of policies on labor availability/waste
   • The impact of time-off and leave management on labor availability
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3. What is the methodology deployed?

   The Labor Utilization Audit™ gathers 3 kinds of data encompassing over 1500 distinct data-points:

   • Quantitative data (through online data requests)
   • Qualitative data (through onsite interviews)
   • Statistically driven data (through 5 online surveys)

   WRx then compares all the datasets to differentiate between correlations and root causes. We only report back on issues that have a minimum of 3 points of data redundancy. This eliminates, "chasing after cultural ghosts" and saves time in implementation.

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4. How does implementation work?

   WRx follows the philosophy of, "Staying in the game" with customers. We build detailed implementation plans based on our assessment of your organizations change readiness and current systems. We create a customized roadmap built from lessons learned during implementations in over 150 other facilities. We charge a minimal 1 time fee for implementation and continue to work with a customer for a period of up to 12 months to ensure the success of both firms (although standard implementation time is 90 days).

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5. How long does the audit take?

   A standard Labor Utilization Audit™ requires 7-9 weeks:

   • 2-3 weeks for initial payroll data exchange
   • Followed by 1 day onsite to perform interviews, introduce the data portal and launch surveys.
   • The survey period typically requires 3 weeks
   • Followed by 10 days of off-site analytics
   • A "preview call" is scheduled for 4 weeks after the onsite day
   • A final presentation of findings & introduction to implementation meeting occurs within 2 weeks of the preview call
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6. How much does an audit cost?

   Pricing for the audit is based upon 3 key factors; Profit status, Faith based status, and GPO affiliation.

   For-profit non-faith-based facilities have the highest pricing and not-for-profit faith-based facilities have the lowest.

   Our pricing philosophy: "We believe that those organizations whose mission requires them to take substantial risks in caring for the least of our society deserve the greatest price sensitivity".

   For more detailed information, please see our Pricing Guide.

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7. What happened to the Pay Practice Audit?

   The 'Pay Practice Audit' has been renamed to the 'Labor Utilization Audit'.

   In the past, the name has been a source of confusion and misunderstanding for years. Due to this fact we came up with a few alternative names and asked some of our clients to pick the one that fit the best. We hope the new name eliminates any confusion and allows more organizations to consider participating in the audit process.

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8. I don't see my question here, can I submit it?

   Yes, questions can be submitted via email to cdawson@workforcerx.org.

   Please state in the email that you would like your question answered directly or that you believe your question should appear in this FAQ.

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