Leadership

Rethinking travel contracts: A better approach for hospitals

Man in scrubs in front of a computer monitor

Hospitals face the ongoing challenge of ensuring they have the right clinical talent at the right time. Travel contracts have long been a go-to option for hospitals needing additional clinical support. While they serve a purpose, they don’t address every use case and come with a few significant drawbacks: they can be costly, wasteful and rigid. In contrast, tech-driven solutions offer a more flexible, per diem approach that allows hospitals to better manage workforce needs in real-time, providing a more efficient and cost-effective alternative to traditional travel contracts.

The drawbacks of travel contracts

1. Short-term fixes, long-term problems

While travel contracts can provide immediate relief, they often only offer a temporary solution. The transient nature of travel assignments means hospitals frequently face the same workforce shortages once the contract ends. This constant cycle can lead to instability, affecting team cohesion and continuity of care.

2. Rigid scheduling and lack of flexibility

Travel contracts often lock hospitals into expensive, multi-week commitments, making it difficult to adapt to fluctuating patient volumes. As patient census and acuity rise and fall, hospitals are stuck with the terms of the travel contract, unable to adjust their workforce as needed. This lack of flexibility can result in having more clinicians than necessary during low census periods or not having enough clinical support when patient numbers spike, hindering a hospital’s ability to respond effectively to changing circumstances.

3. Impact on permanent employees

Hospitals often face the difficult decision of prioritizing internal nurses over contracted travel nurses. Travel contracts typically guarantee a set number of hours per week, meaning hospitals must pay travel nurses even if they aren't utilized. This can lead to duplicate payments if the hospital allows an internal nurse to take a shift that a travel nurse was scheduled for. Such scenarios not only strain budgets but also impact the morale of permanent employees, who may feel overlooked or undervalued. A more flexible workforce solution, providing access to independent professionals, allows hospitals to prioritize internal employees who can take extra shifts or earn overtime as needed.

A better approach

Given these challenges, it's clear that hospitals need a more flexible and sustainable solution to their workforce needs. Here’s why a modern, technology-enabled approach providing access to independent professionals can be a better fit for hospitals and other acute care settings.

1. Flexibility and scalability

A tech-driven model offers unparalleled flexibility. Hospitals can quickly and easily find nurses for shifts, whether it's for a few hours, days, or longer-term needs. This scalability allows workforce levels to be adjusted in real-time, effectively responding to fluctuations in patient volume and acuity. Unlike rigid travel contracts, this approach provides the ability to scale up or down based on patient needs.

2. Enhanced patient care with local expertise

Connecting with local nurses who are familiar with a hospital’s operations enhances the quality and consistency of care. These professionals often already have experience in the local healthcare community and hospital networks, which helps them integrate smoothly into the care team. Their proximity also allows for faster, more reliable access when needed. This familiarity reduces the learning curve and ensures continuity of care, especially during times of high patient volume.

3. Workforce retention and morale

Providing a reliable and predictable method for filling shifts with independent professionals helps hospitals alleviate pressure on their permanent employees. This helps maintain a stable and motivated workforce, reducing burnout and turnover. Additionally, by fostering a collaborative environment where internal employees feel valued and supported, hospitals can improve overall job satisfaction and retention.

A clear choice

While travel contracts provided essential support during the pandemic, their limitations make it clear that a shift is needed. By adopting a more innovative and sustainable approach to workforce management, hospitals and health systems can not only improve their operational efficiency but also enhance the quality of care they provide to their patients. This modern model ensures that hospitals have access to the right workforce at the right time, creating a more stable and effective healthcare environment.

To explore this better alternative, consider trying ShiftKey, a leading technology marketplace that connects hospitals with local, credentialed nurses and other independent professionals. Unlike traditional agencies, ShiftKey offers strategic workforce solutions that meet the dynamic needs of acute care settings, including Medical/Surgical (Med/Surg), the Emergency Department (ED), and the Intensive Care Unit (ICU). Discover how ShiftKey can transform your workforce strategy today.