At a time of labor shortages across all industries, the health care industry is faring no better. 

Powell Valley Healthcare (PVHC) has had to rely heavily on contract labor to keep its staffing levels where they need to be. 

In 2020, PVHC had $603,000 in contract labor costs, compared to 2021, when it paid $438,000. This year to date, PVHC has paid $1.5 million. CFO Joy Coulston estimates that number will go to $2 million before the year is done. 

“It’s a shocker,” Coulston said at the regular board meeting in April. Besides increased demand for contract labor, the labor shortage is creating a “double whammy” for the hospital’s labor costs. 

Terry Odom, PVHC CEO, noted these contract labor costs are not for locum tenums — temporary medical professionals that fill in as substitutes for regular employees who aren’t available. 

Odom noted the problem is something facing all health care facilities across the country. 

Turnover rates are also high. Last year, the hospital had an average turnover rate of 16.8%. This year’s turnover rate has ranged from a low of 18.16% in August to 21.10% in March. 

Odom said with a shrunken labor pool, the competition between industries is getting more fierce. 

“It’s hard to compete with other industries, like food service,” Odom said, adding they used to pay more than the food-service industry. Now, they’re having to try to keep up. 

Speaking after the meeting, Cassie Tinsley, PVHC human resources director, said the hospital had 53 openings the last week of April, of which 44 were full time, three were part time, and six were as needed. In April 2020, there were 34 open positions, and the year prior there were only 28. 

She said it’s not specific to any one level. They have been struggling to fill positions in everything from registration to medical lab technicians. 

They offer what incentives they can, depending on the location and where they’re recruiting from, including sign-on bonuses and relocation packages. 

At the meeting, Tinsley discussed how, when they do successfully fill an open position, housing is now becoming another problem. Whether renting or buying, there are not a lot of options available. 

After two years, they finally were able to extend an offer for a registered respiratory therapist who is moving her family from Colorado. 

“She’s having a very difficult time trying to get her family moved here,” Tinsley said. 

Coulston noted as PVHC starts developing next fiscal year’s budget in the coming month, rising labor costs will need to be factored in. That can be difficult because it’s a very strange labor market right now, creating a lot of unknowns. 

“This is going to be a hard year,” Coulston said.