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CASE STUDY

$100M+ Savings in Contract Labor Expenses Projected for Major Health System

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0M

First quarter savings

0%

Reduction in contract labor expenses YOY
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About Health System

  • Statewide system serving diverse communities across multiple regions 
  • 12 hospitals within the network
  • 1,500+ beds across its facilities
Problem

Contract Labor Surges, Driving Up Costs

During the COVID-19 pandemic, hospitals across the country experienced an unprecedented increase in contract labor usage. According to the American Hospital Association, travel nurse labor expenses rose from 4.7% of total nurse labor costs in January 2019 to 38.6% in January 2022.

Our client faced the same challenge. The organization became increasingly dependent on travel nurses.

  • Rapidly escalating contract labor expenses
  • Increased operational complexity
  • Reduced control over long-term workforce stability
Solution

Build a Sustainable Workforce

Rather than focusing solely on negotiating lower bill rates, SimpliFi implemented a long-term workforce strategy designed to reduce contract labor reliance by strengthening the client’s permanent staff. Through its Confidence Accelerating Practice (CAP) Program, SimpliFi expanded onboarding capacity and accelerated new graduate nurse development, enabling the health system to rapidly grow its core workforce while maintaining exceptional retention.

Solution Highlights

  • 1,500+ new graduate nurses hired since 2021
  • 96% one-year retention rate
More About CAP
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two nurses reviewing patient data on tablet
Results

Significant Cost Reduction

SimpliFi’s workforce strategy delivered significant cost savings while helping the health system rebuild its core staff. By expanding permanent nurse hiring through the CAP program and reducing reliance on travel nurses, the organization quickly lowered contract labor expenses and created a more sustainable, long-term staffing model.

  • $26.1 million saved in Q1, contributing to $112 million in annual savings
  • 42% reduction in contract labor expenses year-over-year
  • Nearly 50% of savings driven by reduced traveler utilization as core staff hiring increased
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Ready to reduce contract labor costs and build a sustainable workforce?

Connect with SimpliFi to learn how your organization can achieve similar results.

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