The Association between Organizational Market Factors and Agency Labor Utilization in U.S. Hospitals

<b>Objectives</b>: To address urgent staffing shortages, hospitals increasingly rely on agency labor. Given that staffing can significantly impact hospital performance, the aim of this study was to understand the organizational and market factors associated with agency labor utilization...

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Main Authors: Brad Beauvais, Rohit Pradhan, Diane Dolezel, Ramalingam Shanmugam, Dan Wood, Zo Ramamonjiarivelo
Format: Article
Language:English
Published: MDPI AG 2024-08-01
Series:Administrative Sciences
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Online Access:https://www.mdpi.com/2076-3387/14/9/192
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author Brad Beauvais
Rohit Pradhan
Diane Dolezel
Ramalingam Shanmugam
Dan Wood
Zo Ramamonjiarivelo
author_facet Brad Beauvais
Rohit Pradhan
Diane Dolezel
Ramalingam Shanmugam
Dan Wood
Zo Ramamonjiarivelo
author_sort Brad Beauvais
collection DOAJ
description <b>Objectives</b>: To address urgent staffing shortages, hospitals increasingly rely on agency labor. Given that staffing can significantly impact hospital performance, the aim of this study was to understand the organizational and market factors associated with agency labor utilization in US hospitals. <b>Methods</b>: Utilizing concepts from the Resource Dependence Theory (RDT), data for the calendar year 2022 for short-term acute care in United States hospitals (<i>n</i> = 2756) were analyzed with logistic regression analysis. We explored total agency labor expense (operationalized as a dichotomous variable at the 75th and 90th percentiles) in the presence of numerous organizational and market independent variables. <b>Results</b>: The results revealed that as markets become less complex (as measured by market concentration), the level of agency labor expense increases (β: 0.843, <i>p</i> < 0.001), while our chosen variables related to munificence (rural location; β: −1.634, <i>p</i> < 0.001) and dynamism (Medicare payor mix; β: −0.025, <i>p</i> < 0.001) were negatively associated with an increase in total agency labor expense. <b>Conclusions</b>: In general, our results appear to support the tenets of the RDT. We find that increased use of agency labor in hospitals is predicated on the hospital having the financial resources and flexibility to be able to afford the higher cost of agency labor.
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spelling doaj-art-de4d9917715e48049036063cd8e1907b2025-08-20T01:56:06ZengMDPI AGAdministrative Sciences2076-33872024-08-0114919210.3390/admsci14090192The Association between Organizational Market Factors and Agency Labor Utilization in U.S. HospitalsBrad Beauvais0Rohit Pradhan1Diane Dolezel2Ramalingam Shanmugam3Dan Wood4Zo Ramamonjiarivelo5School of Health Administration, Texas State University, San Marcos, TX 78666, USASchool of Health Administration, Texas State University, San Marcos, TX 78666, USAHealth Informatics & Information Management Department, Texas State University, Round Rock, TX 78665, USASchool of Health Administration, Texas State University, San Marcos, TX 78666, USABaylor University, U.S. Army Medical Center of Excellence, San Antonio, TX 78234, USASchool of Health Administration, Texas State University, San Marcos, TX 78666, USA<b>Objectives</b>: To address urgent staffing shortages, hospitals increasingly rely on agency labor. Given that staffing can significantly impact hospital performance, the aim of this study was to understand the organizational and market factors associated with agency labor utilization in US hospitals. <b>Methods</b>: Utilizing concepts from the Resource Dependence Theory (RDT), data for the calendar year 2022 for short-term acute care in United States hospitals (<i>n</i> = 2756) were analyzed with logistic regression analysis. We explored total agency labor expense (operationalized as a dichotomous variable at the 75th and 90th percentiles) in the presence of numerous organizational and market independent variables. <b>Results</b>: The results revealed that as markets become less complex (as measured by market concentration), the level of agency labor expense increases (β: 0.843, <i>p</i> < 0.001), while our chosen variables related to munificence (rural location; β: −1.634, <i>p</i> < 0.001) and dynamism (Medicare payor mix; β: −0.025, <i>p</i> < 0.001) were negatively associated with an increase in total agency labor expense. <b>Conclusions</b>: In general, our results appear to support the tenets of the RDT. We find that increased use of agency labor in hospitals is predicated on the hospital having the financial resources and flexibility to be able to afford the higher cost of agency labor.https://www.mdpi.com/2076-3387/14/9/192laboragency laborresource dependence theoryhealthcare staffing
spellingShingle Brad Beauvais
Rohit Pradhan
Diane Dolezel
Ramalingam Shanmugam
Dan Wood
Zo Ramamonjiarivelo
The Association between Organizational Market Factors and Agency Labor Utilization in U.S. Hospitals
Administrative Sciences
labor
agency labor
resource dependence theory
healthcare staffing
title The Association between Organizational Market Factors and Agency Labor Utilization in U.S. Hospitals
title_full The Association between Organizational Market Factors and Agency Labor Utilization in U.S. Hospitals
title_fullStr The Association between Organizational Market Factors and Agency Labor Utilization in U.S. Hospitals
title_full_unstemmed The Association between Organizational Market Factors and Agency Labor Utilization in U.S. Hospitals
title_short The Association between Organizational Market Factors and Agency Labor Utilization in U.S. Hospitals
title_sort association between organizational market factors and agency labor utilization in u s hospitals
topic labor
agency labor
resource dependence theory
healthcare staffing
url https://www.mdpi.com/2076-3387/14/9/192
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