Grady Health + HWL
How One Health System Transformed Contingent Labor Management by Saving Millions on Agency Spend
About Grady Health
Grady Health System (GHS), founded in 1892, and located in Atlanta, Georgia, is the tenth largest public hospital in the United States and one of the country’s busiest Level I Trauma Centers. In addition, Grady Health System employs 3,000 physicians representing over 80 medical specialties and is recognized as having some of the nation’s top physicians. The health system combines the best medical care in Atlanta.
The Situation
Grady Health System faced post-pandemic financial challenges, driven by expenses tied to contingent workers and nurse burnout.
The unstable demand for contingent workers and rising rates from traditional agencies pressured Grady Health System to cut costs, leading to a continued partnership with HWL, known for its track record of success in healthcare collaborations.
Key Challenges
Post-Covid, rates for contingent labor had skyrocketed and created an unsustainable financial requirement for GHS and other hospitals nationwide.
The high demand for nurses in all specialties added another element to the predicament
Limited visibility into what the hospital was paying their contingent workers versus what the bill rates the hospital received.
No real ability to set their rate versus agency-guided feedback. The client was driving the bill rate based on what the market was doing.
To meet the high demand for clinical staff during and after the Covid-19 pandemic, our hospital developed a reliance on travel nurses. However, we needed more direct insight into the market rates for contingent staff and struggled to source quality candidates at competitive rates. That is until Grady Works was created. Thanks to this solution, we now have a clear understanding of the market rates and can drive competition for top candidates. As a result, our organization has saved money and improved our approach to staffing contingent labor.
Sabrina Broadnax
Vice President, Human Resources Grady Health System
The Goal
Develop and execute a Grady-branded private label that would provide real-time visibility into the contingent labor market to drive competitive rates and generate cost savings for Grady
The Solution
After the pandemic strained hospital finances nationwide, Grady Health System, like others, urgently sought relief from high costs of hiring contingent workers. Nurse burnout was rampant due to intense working conditions, leading to a surge in healthcare worker resignations and exacerbating the scarcity of available staff. Meanwhile, the post- pandemic demand for contingent labor remained unstable, with traditional agencies offering costly rates to attract workers. Grady Health System faced immense pressure to cut expenses and find innovative cost-saving solutions.
HWL had successfully collaborated with the Georgia Department of Health and Georgia Emergency Medical and Homeland Security to boost vaccination rates at four major sites in Georgia. When Grady Health System decided to maintain a contractual relationship, they opted for HWL's private label solution, which came at no extra cost. This decision was based on HWL's reliability and track record of delivering results.
Grady Health, much like other hospitals, has had pressure from leadership to find solutions that would significantly reduce costs. Grady had the added challenge of recruiting for a hospital with numerous surrounding hospitals for nurses to choose assignments. Grady needed the advantage of using branded agency marketing on multiple platforms to attract nurses to their hospital. Through working with HWL and Wanderly, Grady was able to increase market visibility.
Claudia Jayne
HWL Workforce Management Director
Outcomes
Average cost savings of 21% on Grady's contingent labor through visibility into rates.
Market penetration into the healthcare workplace.
Quality staff and an average fill rate of 78% among contingent workers
Results
Grady Health System utilized HWL’s Grady Works to gain insights into the labor market, setting competitive rates based on real-time data. This visibility drove down market rates, making Grady a prominent vendor. Marketed through platforms like Wanderly, Grady Works saved costs by setting sustainable rates, utilizing Atlanta’s allure and competitive pricing to directly source contingent workers, reducing reliance on external agencies.