How One Hospital System Saved Millions and Improved Fill Rates with Smarter Labor Pricing

Using Data to Drive Real Change

Faced with rising labor costs and inconsistent staffing rates, a large hospital system identified a critical gap: the absence of a strategic pricing framework. Vendor rates were often set reactively—based on immediate need rather than market realities—resulting in inflated costs and limited control over workforce spend.

To address this, the organization partnered with GHR Healthcare to develop a more intelligent, data-driven pricing model. In close collaboration with their internal team, we conducted a comprehensive analysis of labor spend, uncovered key inefficiencies, and implemented a more targeted, scalable approach to position fulfillment.

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Quick Savings with Long-Term Impact

In just one quarter, the hospital saved millions by adjusting rates based on real-time market data and clinical demand. Each position was evaluated individually, allowing the team to offer competitive rates for high-need roles while scaling back in lower-demand units.

A major cost driver identified was hidden overtime—driven by “48-hour clauses” in vendor contracts. By eliminating these across affiliate agreements, the hospital reduced overtime and gained greater control over its workforce strategy.

With those insights, the team fine-tuned their pricing model:

• +$5/hour for OR nurses, where urgent coverage was needed

• –$5/hour for Med Surg Tele, where volume was highest

This focused approach helped fill critical roles in the OR—without increasing total labor costs.

 

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Stabilizing Spend Amid Rising Demand

Even as staffing requests increased, the hospital saw a steady rise in fulfilled positions while keeping overall costs stable. The new pricing model aligned labor investment with actual clinical needs—helping the team anticipate challenges instead of reacting to them.

 

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Operational Insight, Tangible Outcomes

The majority of staffing demand remained in Med Surg Tele, with lower volume in the OR. Prior to this strategy shift, OR vacancies were difficult to fill, and the hospital's only option was to raise rates across the board.
Now, the team is empowered with data and a proven model to:

• Prioritize spend where it matters most

• Fill high-skill positions faster

• Maintain budget control even during staffing surges

 

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Looking Ahead

This engagement shows the power of targeted strategy and proactive vendor management. By combining analytics, contract expertise, and deep market knowledge, GHR Healthcare delivered results that speak for themselves.

 

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Want To Learn More?

Let’s build a smarter workforce strategy together.
Connect with our team to learn how we can help your hospital system reduce costs, fill more positions, and gain real visibility into your contingent labor.