Addressing Healthcare's Labor Crisis: Retention Strategies

The Aftermath of the Contingent Labor Crisis in Healthcare?

The contingent labor crisis in healthcare may be easing, but its aftermath has brought new challenges for healthcare providers. During the pandemic, hospitals and health systems relied heavily on contingent workers, such as travel nurses, to address acute staffing shortages. As those needs have declined, many organizations have pivoted to aggressively replace contingent labor with permanent hires.?

This transition, however, has not been without complications. The rapid shift has triggered a hiring frenzy, with health systems scrambling to onboard permanent staff as quickly as possible. Unfortunately, such accelerated hiring often leads to hasty or poorly considered decisions regarding candidate selection. These missteps now threaten to undermine employee retention rates.?

Challenges in the Sterile Processing Department?

For the Sterile Processing Department (SPD), Moab Healthcare has identified that much of the turnover stems from insufficient internal education and training. During the pandemic, SPD technicians found it easy to leave their roles for jobs at companies like Amazon or Uber, where they could earn comparable or greater compensation with significantly less stress and hassle.?

To address this, Moab Healthcare collaborates with clients to improve SPD employee retention by creating role-specific education and training programs and developing standard operating procedures (SOPs). Janet Tull, Vice President of Sterile Processing Services at Moab, explains:?

"When SPD staff are not properly trained, they are more likely to leave their positions. Imagine being criticized by someone from the operating room for not doing your job correctly when you were never given proper hands-on training or clear SOPs. This often leads to frustration and resignation."?

Proven Results with Structured Training?

The impact of Moab Healthcare’s approach is evident. Tami Heacock, System Director of Sterile Processing at Lee Health, shared:

Since partnering with Moab Healthcare and implementing SOPs, training, and onboarding programs, Lee Health has improved the turnover rate of SPD staff from 7% to 2%.?

Retention Challenges Ahead?

Despite these successes, hospitals and health systems continue to face retention challenges. The year 2025 has begun with optimism about economic growth and job creation under the new administration in Washington. If this optimism materializes, it could further tighten the already limited talent pool for hospitals.?

While Sterile Processing may represent just one area within a hospital, it plays a critical role that often goes underappreciated. Surgical instruments and equipment—one of the largest budget categories for hospitals—frequently pass through SPD. This underscores the importance of investing in robust training and procedural clarity to ensure efficiency, accuracy, and employee satisfaction.?

By addressing the root causes of turnover through strategic training and well-defined procedures, healthcare organizations can better position themselves to retain talent and meet the growing demands of the industry.?

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