At the same time, leaders are investing in strategies to ease capacity constraint. Hiring and retaining staff remains a top priority, with executives citing recruitment and enhanced compensation as critical levers for stabilizing the workforce. Yet adding staff alone is not enough, as workforce supply remains constrained and patient demand will continue to outpace available capacity.
Nearly 40% of respondents are redesigning workflows and schedules to improve throughput, such as creating fast-track ED pathways, using artificial intelligence (AI)-driven scheduling tools to maximize provider availability and standardizing discharge processes, to ensure that limited resources can accommodate as much demand as possible.
More than a third of health systems are shifting appropriate care to ambulatory or other lower-acuity settings in order to alleviate overcrowded inpatient units. By strengthening care management and triage processes (e.g., hybrid ED-urgent care models), hospitals can ensure patients receive care in the most appropriate and lowest-cost setting based on their needs. Others are reallocating staff, equipment and resources across sites to better match demand.
Not all these strategies have the same financial implications (see Figure 4). Some — such as expanded recruitment efforts and wage increases, physician infrastructure expansions or a reliance on external staffing partners — can place additional pressure on margins. By contrast, initiatives such as workflow redesign, site-of-care shifts and staff reallocation can improve efficiency and margin performance over time.