IT spending within healthcare is expected to increase to more than $34.5 billion next year, as large North American organizations grapple with the impact of healthcare reform, privacy regulations and the federal government’s call for consolidated data and increased efficiencies.
Over the last 12 years the industry has consolidated considerably having gone from approximately 9,500 health systems and hospitals to around 5,000. This number is projected to plummet even further to fewer than 2,500. Between ongoing implementations and a wave of upgrades, Meaningful Use 2, along with the ICD-10 deadlines, it is a busy time in the Healthcare IT market.
Throughout the course of this year, health systems have trended towards hiring certified talent for full time opportunities. However, it can be difficult to attract full time employees given the high consulting rates available to seasoned professionals. There is a large disconnect between the ability to easily hire in-house when consulting work is still so prevalent. This gap between consultant pay and FTE total compensation can still be significant. That being said, we have seen some health systems starting to bridge the divide successfully.
When’s the last time a hospital re-calibrated their compensation programs with an eye on what is happening in the Healthcare IT marketplace? It is safe to say that some have done it recently and shuddered at the dramatic increases in base salary needed to solidify top talent on a full-time basis. As you can imagine, these figures are not always met with open arms and conflict can arise quickly when comparisons are made internally. It takes a strong communication plan and buy-in from the leadership team to make these changes a reality.
With an ongoing skills shortage, health systems may continue to struggle securing the professionals needed to meet their long term objectives, but the good news is that we are seeing more and more talent considering full time employment as a stable and fulfilling alternative to the road warrior consulting game.
In response to these trends, Greythorn conducts an annual Market Survey, and the data collected benefits both clients and candidates alike. The final report is designed as a tool to help health systems make more strategic decisions with regard to hiring, as well as help consultants and candidates benchmark their compensation, benefits and job satisfaction, against others in the market. The more input we have, the more robust the output will be. Take the survey ►