Labour substitution and efficiency in healthcare delivery: General principles and key messages
A CfWI report in collaboration with the University of Manchester to provide managers and workforce planners with evidence to inform their choices when addressing workforce challenges.
The substitution of one kind of worker with another is one strategy for improving the effectiveness and efficiency of healthcare provision.
In order to make informed choices about labour substitution, managers and workforce planners need evidence-based research about the likely consequences of such changes.
Drawing on economic principles and studies across a number of occupational work groups in the healthcare sector, this briefing paper indicates that labour substitution
- is a plausible strategy for addressing workforce shortages
- can reduce (wage) costs – under certain conditions, which can be challenging to meet
- can improve efficiency – under restricted conditions, which are difficult to meet.