Question Tag: Staffing

(i) Strengths in Okunka’s Operating Environment:

1. Centralized Procurement Department:
   • The hospital’s procurement team researches suppliers to obtain the lowest price for purchases. This helps ensure that resources are acquired economically, promoting cost savings.
2. Increased Overtime Rates to Reduce Temporary Staff:
   • By offering increased overtime rates, the hospital incentivized permanent staff to work additional hours, reducing reliance on more expensive temporary staff. This ensures better staffing efficiency and cost management.
3. Time Card Clocking System:
   • The hospital has implemented a time card system for staff to clock in and out. This system provides accurate tracking of staff hours, ensuring that overtime payments are based on actual hours worked and helping monitor labor costs effectively.
4. Investment in Surgical Equipment:
   • Okunka hospital invested in new surgical equipment, which allowed more operations to be performed and improved patient recovery times. This enhances the hospital’s effectiveness in delivering healthcare services.

(ii) Improvements to Provide Best Value for Money:

1. Procurement Quality Control:
   • To further improve, the hospital could develop an approved list of suppliers that meet both cost and quality requirements. This would ensure that while costs are minimized, the quality of supplies is maintained or improved.
2. Permanent Staff Recruitment:
   • While increasing overtime rates has reduced temporary staff costs, long-term reliance on overtime may affect staff efficiency due to fatigue. The hospital could look into recruiting additional permanent staff to further optimize labor costs and reduce reliance on overtime.
3. Monitoring Overtime:
   • The time card system could be enhanced by implementing controls that limit unauthorized overtime. For example, overtime hours could require prior approval from department heads to ensure that only necessary overtime is worked.
4. Maximizing Equipment Utilization:
   • While the investment in new surgical equipment has improved patient recovery times, the hospital could further enhance value by ensuring that staff are trained to use the equipment more efficiently, potentially increasing the number of procedures performed.