ASCs battle hospitals' deep pockets for labor

ASCs in many markets are finding themselves in direct competition with hospitals, which can often offer higher salaries, for staff recruitment and retention.

Healthcare staffing costs continue to riseacross the board, impacting ASC budgets significantly. The percentage of ASCs with an operating budget of $3 million or more rose to 43% in 2023, up from 32% the previous year, according to a survey from OR Manager

"As a nurse who’s worked in one of the larger hospitals in the area, I understand the challenge,"  Jennifer Robinson, RN, is director of Norfolk, Va.-based Center for Special Surgery, currently in development, told Becker's. "Hospitals have the lion’s share of the healthcare workforce, and like everywhere else, there’s a nursing shortage."

Despite this, ASCs often attract staff with the promise of a more predictable schedule — Monday to Friday, no weekends, no holidays, no call.. But given the current economic climate, Ms. Robinson said, this appeal may not always be enough to sway candidates.

Meanwhile, labor costs continue to grow for hospitals as well. Labor expenses accounted for 84% of total expenses in the first quarter, according to Kaufman's latest "Physician Flash Report," based on data from more than 200,000 providers. 

"The draw for ASCs is still there, but if competitors offer a couple of dollars more per hour, it’s going to be hard to compete," Mr. Robinson said. "We’ll have to navigate that when the time comes, especially since I want good staffing ratios and to prioritize patient safety. We don’t have the same benefits as larger companies, but the work-life balance and set hours are huge draws."

While ASCs may not be able to compete with larger systems for compensation, other benefits, such as professional development, increased autonomy and educational opportunities, can also contribute to employees' overall satisfaction and retention. 

"Puerto Rico ASC Holding as the operator of three ASCs in Puerto Rico (Vista Ophthalmic, Caguas ASC and CALMA) is investing in our people. ASC staff truly make magic every day with their hard work for the benefit of our patients. Staff retention is one of the most challenging situations we are facing," Angie Jimenez, administrator of Vista Ophthalmic Ambulatory Surgical Center in Guaynabo, Puerto Rico, told Becker's. "We are investing in our staff's professional development to form future leaders and to help them achieve professional goals like completing a nursing master's degree or a surgical tech completing their nursing degrees and clerical staff achieving a coder certification."

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