Assignment Task:
Topic: "The financial implication and operational challenges of staff turnover in nursing home"
Introduction
The nursing home industry serves as a vital component of the United States healthcare system, providing long-term care to over a million vulnerable individuals, many of whom are older adults and people with disabilities (Sengupta et al., 2022).This sector has been historically vital in providing long-term care services for the elderly and disabled people (Pradhan et al., 2024), yet it is now grappling with a myriad of issues that have compounded over the years and intensified in the wake of the COVID-19 pandemic. The nursing home industry stands at a critical juncture, facing a cascade of challenges that threaten its financial stability, and the quality of care afforded to some of society's most vulnerable populations (Sharma & Xu, 2022). Key among these challenges are fierce competitive pressures from alternative providers, such as home health agencies and community-based services, which have gained traction and appeal among families seeking personalized care for their loved ones (Pradhan et al., 2024).
In light of these complex challenges, it is crucial to recognize the role of staff turnover as a significant factor influencing the financial performance of nursing homes Sengupta et al., 2022). While various external pressures contribute to the industry's predicament, addressing staff turnover presents a unique opportunity for nursing home operators and stakeholders to implement targeted interventions that can yield substantial improvements in both financial stability and quality of care (Rodriguez-Rodriguez et al., 2022). By fostering a supportive work environment, offering competitive wages, and investing in employee development, nursing homes can mitigate staff turnover rates and enhance employee retention. This, in turn, can create a virtuous cycle where improved financial performance allows for better compensation and benefits, further promoting staff loyalty and reducing turnover. This qualitative exploratory case study will examine the financial implications and personal feelings of nursing home employees surrounding staff turnover in nursing homes in the northeast region of the United States of America.
Background of the Problem
The nursing home industry has struggled to remain financially solvent due to a variety of reasons such as the growing competition from a slate of alternative providers (home and community-based services), insufficient Medicaid reimbursement rates, declining occupancy rates, high staff turnover, and the ever-shifting regulatory environment (Pradhan et al., 2024). In nursing facilities, staff turnover has long been a problem, with rates averaging 40% each year since the 1990s (Zheng et al., 2022). The effectiveness of nursing homes' operations, the standard of care they provide, and eventually their financial stability are all negatively impacted by this frequent turnover (Pradhan et al., 2024). Studies have indicated a direct correlation between staff turnover and reduced quality of care, heightened operational inefficiencies, and a detrimental effect on resident satisfaction (Castle et al., 2020; Zheng et al., 2022). But turnover has far-reaching financial ramifications and operational inefficiencies that go beyond its impact on care quality and can endanger the long-term viability of nursing homes.
The expenditures associated with finding, hiring, and training new staff members are only a few of the significant expenses brought on by staff turnover (Orewa et al., 2024). Staff turnover in nursing homes breaks the continuity of care by forcing current employees to work overtime or cover extra shifts, which raises labor expenses (Zheng et al., 2022). Moreover, when care quality deteriorates, which it frequently does with high turnover rates, nursing homes frequently come under additional regulatory scrutiny and risk financial fines (Castle et al., 2020). These costs put further financial strain on care homes, which already have low profit margins (Zheng et al., 2022).
Medicaid reimbursement, which is sometimes insufficient to pay escalating operating costs, is a major source of income for many nursing homes (Gadbois et al., 2022). Because of this, facilities are compelled to make other cost cuts, which could increase employee discontent and prolong the turnover cycle (Orewa et al., 2024). A high staff turnover rate jeopardizes the continuity of care residents rely on because new hires might not be acquainted with each resident's unique requirements and preferences (Pradhan et al., 2024). According to studies, turnover results in worse care outcomes and decreased resident satisfaction, which can harm an organization's reputation and even affect occupancy rates (Orewa et al., 2024). Nursing homes that are financially constrained often experience lower resident quality of care and a higher risk of consolidation and closure, which can have significant consequences for long-term services and supports access, particularly in the northeast region of the country where access to long-term care service is already a challenge (Gandhi., 2021, H. Nelson et al., 2023).
The financial viability of nursing homes has become a pressing issue in recent years, exacerbated by numerous factors such as declining occupancy rates, and the devastating effects of the COVID-19 pandemic (Rodriguez-Rodriguez et al., 2022). COVID-19 exacted a devastating toll on nursing homes. According to a U.S. government report, two in five Medicare beneficiaries in nursing homes were diagnosed with COVID 19 (Stephenson, 2021). According to Stephenson (2021), in February 2020, the US reached the grim milestone of 200,000 fatalities among residents and staff in nursing homes, highlighting the severity of the crisis. In response, nursing homes occupancy rates plunged from 81% in 2019 to 72% in 2022, exacerbating concerns over financial sustainability (Gadbois et al., 2022, Stephenson, 2021).
Orewa et al. (2024), state that, as the world transitions towards a post-pandemic world, it is important to consider nursing home financial viability as a pressing issue. However, addressing poor nursing home financial performance is complex as it requires simultaneously balancing multiple competing interests including minimum staffing mandates, high rates of staff turnover, falling occupancy rates, high liability insurance costs, state Medicaid funding cuts, and the threat of new pandemics that can decimate the demand for institutionalized long-term care (French et al., 2022, Grabowski & Mor, 2020).
Despite the evident complexity, it is crucial to recognize individual factors such as staff turnover, particularly because it can potentially be managed at the facility or organizational level (French et al., 2022). There is a significant body of work on the operational and care-related difficulties brought on by excessive staff turnover in nursing homes, but little of it particularly tackles the financial effects of turnover (Cimarolli et al., 2024, Miller et al., 2023, Temkin-Greener et al., 2024). Most research to date has concentrated on the effects of turnover on resident satisfaction and care quality, but it has not thoroughly examined the financial burden that turnover places on nursing home operators and how this impacts their capacity to continue operations and deliver high-quality care (Miller et al., 2023, Pradhan et al., 2024).
The gap in the literature is crucial because creating practical solutions to lessen the effects of turnover requires an understanding of its financial burden (Sharma & Xu, 2022). Research frequently ignores the reality that nursing facilities, especially those that depend on Medicaid money, have very few financial safety nets, making them susceptible to fluctuations in staffing levels or occupancy rates (Gadbois et al., 2022). Furthermore, research on the ways in which focused interventions, such raising pay, offering better benefits, or creating a positive work atmosphere, could end the cycle of employee turnover and unstable finances is lacking (Rodriguez-Rodriguez et al., 2022).
Understanding the financial implications of staff turnover in nursing homes is essential for developing effective strategies to address this issue and improve the overall quality of care in nursing homes. This study aims to address the gap in the literature by exploring the financial implication of staff turnover on nursing homes in the northeastern region of the US. By exploring the poor financial performance of nursing homes due to high staff turnover rate, the study will provide insights for nursing home operators, policymakers, and healthcare administrators seeking to improve the financial sustainability of nursing homes while maintaining quality care for residents.
Problem Statement:
The problem is the financial and operational challenges experienced by nursing homes due to a high staff turnover rate, resulting in increased recruitment and training costs, overtime expenses, job dissatisfaction and low-quality of care (Orewa et al., 2024). The financial and operational challenges on nursing homes due to staff turnover have emerged as a critical concern within the healthcare industry, particularly as these facilities struggle to maintain operational viability (Sharma & Xu, 2022). Staff turnover, which has averaged around 40% annually since the 1990s, presents a significant challenge for nursing homes, directly impacting care quality, resident satisfaction, and financial stability (Pradhan et al., 2024, Zheng et al., 2022). High staff turnover rates lead to increased recruitment, training costs, and overtime expenses, while disrupting continuity of care, which in turn diminishes the quality of service and subject facilities to additional regulatory scrutiny and potential fines (Gadbois et al., 2022; Orewa et al., 2024). According to Zheng et al. (2022), high staff turnover rate negatively impact the well-being of frontline workers (nurses and CNAs), which in turn lead to job dissatisfaction, burnout and poor quality of care. Understanding these financial and operational burdens on nursing homes is crucial for formulating effective interventions to enhance strong financial and operational viability (Pradhan et al., 2024).
Purpose of the Study
The purpose of this qualitative exploratory case study is to explore the financial and operational challenges experience by nursing homes due to high staff turnover rate, resulting in increased recruitment and training costs, overtime expenses, job dissatisfaction and low-quality of care (Orewa et al., 2024). The study's findings could serve as a source of academic and organizational reflection for nursing home administrators as they assess the financial and operational challenges of staff turnover on nursing homes in the northeast region of America. The findings may also help nursing home administrators who are not sure how to implement and prioritize staff retention and organizational financial stability.
Population and Sample
The population for this qualitative exploratory case study will consist of nursing home employees, including executive directors, directors, managers, administrators, nursing managers and frontline workers (nurses and CNAs). The sample, which is a subset of the target population, will consist of the nursing home administrators, the chief nursing officer and frontline workers (Nurses and CNAs) that are currently employed within the selected nursing home in the northeast region of the U.S. Purposeful sampling will be used to recruit potential participants for the study. The sample size will consist of three healthcare leaders (nursing home administrators and chief nursing officer) and 10 frontline workers (nurses and CNAs) who work in the selected nursing home facility.
Annual financial documents associated with job advertainments, payment to employment agencies, cost of human resources personnel engaged in interviews, hiring and onboarding processes, training cost and overtime expenses within the last three years will be reviewed. These documents will provide objective financial data and information on the costs associated with staff turnover, which can be triangulated with the interview data. By analyzing these records, the study can gain a comprehensive understanding of the financial implications of staff turnover, including the specific costs incurred for recruitment, training, and overtime expenses on nursing homes.
Significance of the Study
The study is significant for several reasons. First, the study is distinctive in that it focuses specifically on the operational and financial implications of the staff turnover rate on nursing homes within the northeast region of the United States. While much of the existing literature has explored the effects of turnover on care quality and resident satisfaction, there has been relatively limited exploration of the direct financial and operational burden that staff turnover imposes on nursing homes. As Sharma and Xu (2022) present it, understanding the financial implication and operational challenges of staff turnover, such as increased recruitment and training costs, overtime expenses, regulatory fines, job dissatisfaction, and quality of care is essential for addressing the long-term sustainability of nursing homes. This study will fill this gap by exploring the economic ramifications and operational challenges of high turnover rates and how they contribute to the instability in nursing homes (Orewa et al., 2024).
Secondly, the findings of this study will be valuable for nursing home administrators, healthcare policymakers, and regulatory bodies. For administrators, the study will offer practical insights into how managing staff turnover can directly influence the financial sustainability of nursing homes. By implementing strategies such as improving wages, benefits, and workplace environment, nursing home operators may reduce turnover and enhance financial performance (Rodriguez-Rodriguez et al., 2022).
This study is relevant to the Scholar, Practitioner, and Leader (SPL) model and the overall objectives of the Triple Aim. According to McCaslin (2023) SPL learners are capable of responding quickly to emerging opportunities and diagnosing and addressing immediate and local problems. The study is significant to the three roles of the SPL model as it adds to the body of existing scholarship that healthcare practitioners refer to for making informed leadership decisions.
Significance to Researchers and Scholars
This study is important to researchers because it can stimulate more studies of efficient strategies that can reduce turnover and improve financial performance in nursing homes by clarifying the link between high turnover rates and financial instability. Building on these findings, researchers might investigate the long-term impacts of turnover on organizational outcomes and care quality, enhancing the conversation on labor management in healthcare settings (Rodriguez-Rodriguez et al., 2022).
Significance to Professionals
This study offers practitioners insightful information about the operational difficulties nursing homes encounter as a result of excessive employee turnover. Nursing home directors can employ targeted retention measures that foster staff satisfaction and loyalty by knowing the financial ramifications (Orewa et al., 2024). Additionally, by investigating the connections between hiring, training expenses, and care quality, professionals can create workable solutions to boost employee morale and the workplace, which will ultimately improve patient outcomes (Sharma & Xu, 2022). The need for evidence-based strategies in human resource management is highlighted by this study, which supports practitioners' objectives of providing high-quality care while preserving operational effectiveness.
Significance to Leaders
This study emphasizes the critical necessity for strategic decision-making by nursing care industry leaders to manage the financial ramifications of employee turnover. Leadership approaches to workforce management and operational sustainability can benefit from this research's thorough grasp of how turnover impacts financial viability (Gadbois et al., 2022). The results can be used by leaders to support staff retention programs and push for legislative reforms that increase reimbursement rates. The study highlights how crucial it is to have a supportive organizational culture in order to increase employee engagement, lower attrition, and improve overall performance (French et al., 2022).
The study's emphasis on increasing nursing homes' financial and operational stability while preserving or raising the quality of care demonstrates its potential to support the Triple Aim, which aims to improve patient care, population health, and cost reduction (Stephenson, 2021). High staff turnover undermines the Triple Aim's objectives by interfering with care continuity, lowering service quality, and raising operating expenses (Zheng et al., 2022). This study would encourage more stable personnel by looking at and resolving the underlying causes of turnover, which would improve resident care experiences, increase satisfaction, and make operations more cost-effective. A more effective use of resources and increased financial and operational sustainability for nursing homes would result from increased staff retention since it would lower the expenses of hiring and training new employees (Orewa et al., 2024).
Nature of the Study
The study employs a qualitative method and an exploratory case study design to deeply delve into the impact of staff turnover on the financial performance and overall operations of nursing homes in the northeast region of the United States. The qualitative approach corresponds well with the study's emphasis on recording the perspectives of multiple stakeholders, including administrators, chief nursing officers, and frontline workers (nurses and CNAs). The perspectives of these individuals are crucial to exposing their feelings and complicated reality of nursing home operations, staff well-being, and care quality. A qualitative research approach was chosen to accomplish this goal because it is well-suited to investigating intricate, multidimensional problems where statistical analysis and direct measurement would not adequately convey the breadth of organizational difficulties and human experiences (Younas et al., 2023). Understanding complex, human-centered phenomena like employee turnover, which combines operational, financial, and emotional elements that affect the work environment, organizational stability, and care quality, is best accomplished using qualitative methodologies (Mishra & Dey, 2022). This approach supports the study's objective of examining the complex viewpoints and perceptions of nursing home administrators, chief nursing officers and frontline workers (nurses and CNAs) that would be challenging to capture using only quantitative indicators.
When examining topics with little to no prior research or when complex variables and dynamic situations makes it challenging to establish casual linkages, the exploratory case study design is preferred (Zahoor et al., 2022). Existing research on staff turnover frequently focuses on quantitative indicators, such as turnover rates or financial costs, and often neglects the subjective components of the issue, such as worker perceptions, morale, and organizational culture. A qualitative study offers a deeper knowledge of these ignored characteristics while delivering actionable advice for leaders and policymakers (Mishra & Dey, 2022). An exploratory case study offers a methodical yet adaptable way to collect in-depth qualitative information and create a solid grasp of the financial and operational cost associated with staff turnover (Mishra & Dey, 2022). A variety of data sources, including document analysis and interviews can be combined in this design to provide a more comprehensive and nuanced understanding the effect of staff turnover on the fianacial and operational performance of nursing homes
While a qualitative exploratory case study is the most appropriate design for this research, several other designs could have been considered: Firstly, a quantitative survey could have been used to collect data from a larger sample of nursing homes. However, this approach would have limited the depth of understanding and could have missed important nuances (Alm??s et al., 2023). Secondly, an experimental design would involve manipulating variables to measure their impact on outcomes. However, this would be difficult to implement in a real-world healthcare setting and would raise ethical concerns (Em, 2024). Finally, mixed methods approach could have combined qualitative and quantitative data to provide a more comprehensive understanding. However, the focus on in-depth exploration of the financial implications of staff turnover made a qualitative approach more suitable for this research (Wasti et al., 2022).
Annual financial documents over the last three years will also be used to supplement the interview data. This will involve examining documents associated with job advertisement, payment to employment agencies, cost of hiring and training, onboarding processes, staff turnover reports, and internal memos. Document review will provide additional context and support the findings from the interviews (Mtisi, 2022).
Data analysis will be conducted using thematic analysis. This involves identifying and analyzing patterns, themes, and relationships within the data (Naeem et al., 2023). Thematic analysis will help to uncover the underlying factors contributing to the financial implications of staff turnover and identify potential strategies for addressing this issue (Naeem et al., 2023). Qualitative exploratory case study design is the most appropriate method for investigating the financial implications of staff turnover in nursing homes. By combining semi-structured interviews, document review and focus group discussion, the research will provide a comprehensive understanding of this complex issue and inform strategies for improving the financial sustainability and quality of care in nursing homes.
Research Questions/Hypotheses
There are three research questions that encapsulated the purpose of this study as follow:
RQ1. What are the perceptions of health care leaders (nursing home administrators and Chief nursing officer) about the financial implication and operational challenges of high staff turnover rate in their nursing home?
RQ2. What are the perceptions of frontline workers (nurses and CNAs) of how staff turnover impacts their working challenges in their nursing home?
RQ3. Based on documentation, how has staff turnover affected the financial and operational performance of the nursing home related to new recruitment and training costs, overtime expenses, and quality care? Need Assignment Help?
Assignment:
Review the propose study and develop three conceptual frameworks that align with the above study "The financial implication and operational challenges of staff turnover in nursing home". The frameworks should place the study in perspective among existing conceptual models and provide a framework related to the research topic. And the discussion should reflect the broad theoretical area under which the research falls and reflect familiarity with germinal and current theories in the field. Provide in-text citations for your work.