Problem Identified

Problem Identified

ABC Correctional Healthcare (ACH) contracts with state and local agencies to provide health services within jails and prisons. The contract that ACH has with the state of Virginia is particularly problematic for staffing in ACH. The contract dictates the hours by position day and shift. In the Virginia contract, if the hours are not worked by someone with the same credentials as indicated in the contract, a penalty is assessed that is approximately 3 times higher than expected wage for an employee in that position. ACH has had a very hard time filling the vacancies in their staffing matrix and has turned to using agency nurses and overtime to try and avoid the penalty fees. The agency employees cost ACH approximately 2 times what a standard employee would make, but this is still lower than the penalty rate for the position. ACH knows that to hire more full-time employees they would need to substantially increase the rate that they are offering. ACH decides to offer a much higher rate, approximately 1.5 times what their current employees are making to bring in new staff. This results in more success filling vacant positions, but now, the original staff are aware that the new staff is being offered more money and are leaving in droves.