Provider Research, Reform

Labor Optimization Tool (LOT)

The LOT assists hospitals with labor planning by taking a holistic view of patient demand, quality considerations, and cost. Reports and recommendations are generated to help facilities test multiple staffing and demand scenarios, and provide forward-looking staffing recommendations. This tool helps hospitals on a monthly or quarterly basis to better understand their current nursing labor mix and how it aligns to their facility and department needs based on historical and forecasted demand. 

By using data and customized inputs around patient census, patient and unit acuity, labor mix, market dynamics, labor cost, seasonal productivity requirements (such as timing for mandatory training), regulatory requirements and other key factors that impact labor flexibility, the tool uses proprietary optimization algorithms to develop staffing plans at the unit level. Facility leaders and staffing personnel are able to use the tool to help with budget and workforce planning (including the mix of full-time, part-time employees, core and flex staff) as well as more tactfully for everyday hiring and contract labor decisions. Use of the tool leads to better labor planning, cost saving, and consistent quality care due to more predictably meeting patient demand.