INFOGRAPHIC

Is Overtime Exhausting Your Healthcare Budget?

If so, you’re not alone.

Labor costs consume most of a healthcare organization’s operating budget, and the ongoing talent shortage is complicating matters. To provide the highest quality of patient care, organizations must maintain sufficient staffing levels, but they also need to attract and retain top talent with higher salaries.

Labor costs account for

60%

of hospital expenses¹

Hospital labor costs
jumped by more than

$42.5B

between 2021 and 2023¹

The bottom line:

Layoffs, salary freezes, and other traditional labor cost-reduction methods likely won’t cut it.

Simple white outline icons of a woman and a man stand side by side on a light background. A plus sign above the man's shoulder suggests adding a person, symbolizing collaboration in quality improvement solutions.

To meet demand through 2032, the healthcare workforce must increase by about 15%²

Are savings hiding in plain sight?

Overtime is one of — if not the — biggest budget buster for most healthcare organizations, and decreasing it is often the quickest, most effective way to drive down labor costs.

But that’s only doable if you have real-time scheduling visibility like you get with Inovalon Schedule Management, a cloud-based shift management software solution accessible from any device.

A computer monitor displays a spreadsheet with rows and columns filled with colored cells in green, red, and blue, indicating various data statuses on a web-based interface for quality improvement solutions.

Stop guessing, start acting

Screenshot of a table listing staff in overtime, showing names, job types (LPN, CNA, RN), total hours, and overtime hours. Two shifts are highlighted as TODAY, supporting quality improvement solutions by tracking 56 total hours and 16 overtime hours.

Step 1

Instantly identify staff
nearing overtime.

A table lists nursing shifts for Justin, showing department, job type, start/end times, and hours. A CNA shift row is highlighted in red for attention—ideal for applying quality improvement solutions. Each row has a “Find Replacements” button. Total hours: 56.

Step 2

Review which shifts will trigger overtime costs.

A table lists three employees with details such as job type, status, contact info, wage, and hours worked. Featuring quality improvement solutions, each row has a Schedule to Avoid OT button, plus Back and Cancel buttons on the screen.

Step 3

Quickly find and schedule replacements who are under 40 hours.

Identify overtime issues with powerful reporting

See how much overtime is costing you by location or region, and forecast expenses for the next month with the Overtime Dollars report.

Take control of your labor expenses

With Inovalon Schedule Management as your sidekick, you can prevent staff overtime, better manage staff-to-patient ratios, and vanquish scheduling inefficiencies for good.

Speak With an Expert

Inovalon and design® and Inovalon® are trademarks of Inovalon, Inc.

“America’s Hospitals and Health Systems Continue to Face Escalating Operational Costs and Economic Pressures as They Care for Patients and Communities,” American Hospital Association, May 2024, https://www.aha.org/costsofcaring
“Reports on healthcare labor trends indicate an improved outlook for hospitals,” Healthcare Financial Management Association, September 21, 2024, https://www.hfma.org/operations-management/reports-on-healthcare-labor-trends-indicate-an-improvedoutlook-for-hospitals/