A case study of cost-efficient staffing under annualized hours

Area of Science:

• Operations Research
• Management Science
• Healthcare Management

Background:

• Workforce planning is complex, involving variable demand and labor costs.
• Annualized hours offer flexibility but require sophisticated planning models.
• Optimizing staffing levels is crucial for cost efficiency in healthcare.

Purpose of the Study:

• To develop a flexible mathematical programming formulation for tactical workforce planning.
• To incorporate annualized hours and model various contract types effectively.
• To minimize total salary costs while meeting workforce demand.

Main Methods:

• Developed a novel mathematical programming formulation.
• Integrated annualized hours as a key planning variable.
• Applied the model to a case study in a Dutch hospital setting.

Main Results:

• The proposed model effectively handles diverse contract types and workforce demands.
• Annualized hours were demonstrated to be a flexible and cost-saving approach.
• A potential annual saving of 5.2% in personnel wages was identified for the hospital.

Conclusions:

• Mathematical programming with annualized hours provides a powerful tool for tactical workforce planning.
• Implementing annualized hours can lead to significant cost reductions in personnel wages.
• The model offers valuable insights for optimizing staffing and managing labor costs in healthcare organizations.