Rising from the Ashes in Phoenix: AHE Exchange24 Summit Recap

Under the blazing July sun of Phoenix, attendees baked in the invaluable learnings and insights shared at the Exchange24 Summit hosted by the Association for the Healthcare Environment (AHE). This annual event is all about discussion and idea-sharing, and that it was! This blog highlights some of the key lessons learned from the session titled “Leaning in During Lean Times: Resource Management Solutions” presented by Ben Kenyon and myself. This session offered practical solutions and best practices to help environmental services leaders navigate these turbulent times.

Current state of U.S. healthcare finances and staffing

The pandemic has left an indelible mark on the U.S. healthcare system, exacerbating financial struggles and staffing shortages. The session highlighted that by the end of the second year of the pandemic, 75% of Americans had contracted COVID-19, leading to high hospitalization rates and deferred treatments for other critical conditions.^1,2 This disruption significantly impacted hospital finances, with operating margins remaining negative throughout 2022 and only returning to profitability in March 2023.³ Despite this, 40% of hospitals continue to lose money, and the margins remain below pre-COVID levels.⁴

Impact on Environmental Services (EVS) departments

EVS departments, which are crucial for maintaining patient safety and satisfaction, face many challenges in the post-pandemic era. The pandemic led to a 258% increase in contracted labor costs and a 20% longer average length of stay (LOS) for patients.⁵ Additionally, the cost of supplies and medical equipment surged by 15-30%, while reimbursement rates failed to keep pace with inflation.⁵ These financial pressures, coupled with the mass exodus from the workforce known as the “Great Resignation”, have resulted in critical staffing shortages, with some hospitals experiencing turnover rates as high as 100%.^6,7

Drivers of staffing shortages

Three primary drivers of staffing shortages were identified:

1. Burnout: Characterized by emotional exhaustion, depersonalization, and a low sense of personal accomplishment, burnout was fueled by excessive workloads, long hours, lack of organizational support, and working short-staffed.⁸

1. Better pay elsewhere: Many lower-paid workers left healthcare for safer jobs with comparable or better pay. While we don’t have specific data, we do know that 9 in 10 EVS workers experienced burnout in the last few years.⁷ Given the physical nature of EVS work and that their pay is less than food service workers, these statistics should not be surprising.⁹
2. Aging workforce: With a significant portion of the workforce nearing retirement age, the healthcare industry faces a looming crisis as these workers leave the field.¹⁰ In fact, every day, 10,000 Americans turn age 65 and by 2030, every single Baby Boomer in the US will be 65 or older.^10,11 For the first time in our history, there will be more older adults than children.¹⁰

Practical solutions and best practices

Strategies to address these challenges include:

• Training and education: Investing in training programs to upskill employees and provide career advancement opportunities.⁶ This is key to staff retaining the staff you do have.
• Competitive wages: Ensuring competitive wages to attract and retain staff.
• Outreach programs: Reconnecting with previous employees and reaching out to veterans, immigrants, and incarcerated persons through apprenticeship programs.⁶
• Employee referral programs: Offering recruiting bonuses to current employees for referring friends and family.¹²

• Improving workplace culture: Keeping lines of communication open, making work enjoyable, and recognizing employee achievements.⁶

Efficiency and innovation

To improve efficiency, the session recommended that attendees identify time-consuming tasks and inefficiencies in the cleaning process.^13,14 Leveraging technology, such as automation and artificial intelligence, can also help optimize workflows and reduce costs. Last, standardizing products and protocols helps to ensure consistency in cleaning practices to improve compliance and effectiveness.¹⁵ Look for ready-to-use products as they maximize efficiency.

Conclusion

The session concluded with a call to action for healthcare leaders to re-examine old ways of working and embrace new strategies to overcome the current challenges. By offering competitive wages, investing in training and education, and improving workplace culture, healthcare facilities can retain their staff and ensure high-quality patient care. Just as the city of Phoenix rises from the desert heat, the healthcare industry can emerge stronger and more resilient from these challenging times.