The “Value” of Human Capital in Healthcare
What is Human Capital? Google it and you will get a whole host of definitions. Strip out the fluff and it comes down to one key item – VALUE. No matter which definition you prefer, the intent of Human Capital is to drive positive value through the delivery of goods, services, or knowledge. This does not always just have to be to your organization, but given this is a business blog, we will focus on that (plenty of human capital exists to drive value in your family and community).
Human Capital is Value
So, if you are comfortable agreeing that Human Capital is value, which inherently leads to improved organizational effectiveness, what is next?
Next we must look at the focus and execution of bringing the highest quality resources into your organization for all roles – the key being ALL roles.
Too often within Healthcare Delivery Systems, the focus is solely on Providers and their skills since they “bring in the revenue.” Providers must undergo rigorous credentialing and privileging procedures just to be hired, and then undergo the same scrutiny every two years – not including the mandatory CME, Training, and Procedural Upskilling throughout that timeframe. The understanding is that through that process, you inherently get a high-level of Human Capital. This cannot be argued, but it’s a rather simplistic view of organizational structure.
All Resources are Human Capital
What about the people who ensure that these Providers accomplish these activities on time to meet robust regulatory standards. What about the people who maintain the systems that integrate the information to the various systems that drive billing (ensure that the Provider revenue is actually recognized)? What about the leaders who set the strategy and direction for the hospitals and technicals to invest in new tools and techniques? You see where I am going – any Healthcare Delivery System has a lot of resources and ALL of these resources must be considered Human Capital. Take a few quick steps in order to start moving down the right path:
Attract Top Talent
Learn how to attract the best resources for all roles within your organization – competitive analysis of your market, other healthcare organizations, and industry trends will ensure that your compensation and benefits are in-line.
Develop Role Profiles
Develop robust role profiles for your organization that outline the knowledge, skills, and abilities that are required to not only perform the job, but excel – internal job profiles are not the same as job requisitions. There is a distinct difference between skills needed to get a job versus perform a job.
Establish a Culture of Communication
Establish a culture of open communication where strategy is cascaded throughout the organization.
Utilize Technology Resources
Technology savvy resources are required in today’s healthcare environment – perform an upskilling of resources to work with the new technology, as opposed to adapting new technology to prior processes and skill-sets.
Remember, due to current economic conditions, the market is flooded with excess talent. Seize the opportunity to acquire an improved level of Human Capital within your organization.
About the Author
Matt Gretczko is a Founding Partner of SEERhealth primarily responsible for leading the development of the SEERhealth platform, initial client roll-out strategy, and ongoing implementation methodology. Matt has nine years of consulting experience, previously working at Deloitte where he provided global process redesign, technology implementation, workforce analytics, and change management services. VIEW FULL PROFILE