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HR and finance leaders at healthcare organizations and nonprofits How Healthcare Organizations Can Take Control of Unemployment Costs



How Healthcare
Organizations Can Take
Control of Unemployment Costs.

HR and finance leaders at healthcare organizations and nonprofits can improve claims outcomes, free up internal bandwidth, and reduce UI tax rates with UC Alternative’s performance-based model of claims management.

Healthcare team at work

A Problem Healthcare Leaders Can’t Afford to Ignore

The surging cost of unemployment impacts more than just the bottom line. At healthcare organizations where HR teams are already stretched thin, unemployment tasks can quickly pile up and block critical work like retention, engagement, and workforce planning.

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– HEALTHCARE INDUSTRY –

Why Healthcare Gets Hit Harder Than Most Industries

Healthcare organizations face a mix of pressures that drive up the cost and complexity of unemployment claims. From strict patient safety protocols to regulatory requirements that need to align perfectly, a single missed step can mean losing an otherwise winnable claim.

High turnover leads to a steady stream of claims.

Healthcare organizations experience some of the highest turnover rates across all industries. Hospital turnover averaged 18.3% nationally over the past five years, according to the 2025 NSI National Health Care Retention & RN Staffing Report.

Decentralized HR creates inconsistent responses.

In many healthcare systems, HR responsibilities are distributed across individual locations, resulting in inconsistent documentation.

Unionized workforces increase risk during separations.

Many healthcare organizations employ unionized staff, which means disciplinary action must follow strict procedures outlined in collective bargaining agreements.

Multi-state operations add layers of compliance risk.

For healthcare systems and nonprofits with locations in multiple states, unemployment compliance is a moving target. Each state sets its own rules, forms, and deadlines.

Tight margins amplify the impact of tax increases.

Even a modest increase in your UI tax rate can have a serious impact. Just a 1% increase to a $50 million payroll adds $500,000 in expenses.

Nonprofit status creates direct financial exposure.

Nonprofit healthcare organizations often opt to pay dollar for dollar for every approved claim rather than paying into a pooled tax fund.

Ready to Start Reducing UI Costs?
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– OUR DIFFERENCE –

Why Traditional UI Claims Vendors Fall Short

Most unemployment claims management vendors are built for volume over outcome. They’re paid a flat fee per claim, which means they get paid the same whether you win or lose.

With no real incentive to fight questionable claims, some vendors do the minimum required of them. That might mean submitting a basic response without documentation, overlooking compliance risks, or failing to follow up when deadlines are missed.

See our case study on how Nexion Health saved over $651,000 by driving down UI tax rate and unemployment claims

Stop Losing Winnable Claims
Healthcare workers discuss UI tax rates
– A NEW MODEL –

Performance-Based Pricing

UC Alternative’s performance-based pricing takes a different approach from traditional unemployment claims management services. Unlike flat-fee vendors, our pricing is tied to the outcomes that matter to you: reducing your claims costs and UI tax rate over time.

With our vested interest in our clients’ success, we become a partner and an extension of your team. And our results speak for themselves: our clients see their unemployment costs drop by an average of 40%.

See How Much Our Unique Model Could Save You

– RESULTS –

Here’s a glance at some of the results our clients have seen.

Our client: a privately-owned provider of nursing, rehabilitation, palliative, and hospice care

Over eight years, the healthcare provider saw its UI tax rate fall from 2.071% to just 0.146%—well below the state’s industry average. That improvement translated to nearly $2 million in savings ($1,956,138 from 2016 to 2024). Alongside the tax reduction, the organization strengthened its claims handling process, contributing to long-term rate stability and greater confidence in HR operations.

Our client: a three-decades-old provider of skilled nursing, assisted living, rehabilitation, and post-acute services with approximately a dozen locations across the Southeast.

From 2014 to 2024, the organization achieved more than $6.3 million in unemployment insurance (UI) tax savings in a single state, lowering its tax rate to a level significantly below the state’s industry average. By outsourcing claims management and tax rate optimization to UC Alternative, the provider improved internal processes, reduced claim errors, and freed up HR leadership to focus on mission-critical care delivery.

Check out our Guide for an in-depth look at picking the right partner.

Download the guide: What to Consider When Choosing an Unemployment Claims Provider

– BENEFITS –

How HR and Finance Leaders Benefit from Our Process

Whether your focus is workforce strategy or financial performance, the way your organization handles UI claims has a direct impact on your results. Here’s how UC Alternative helps both HR and finance leaders focus on what matters most: 

HR: Focus More on People, Less on Paperwork


Managing unemployment claims shouldn’t take time away from your highest priorities. With stronger documentation and expert guidance (like pre-termination consultations), your team is better equipped to win more claims when separations happen.



By outsourcing this function to a partner that understands healthcare, your team can shift its focus back to where it belongs: supporting your current employees, improving retention, and driving forward your workforce strategy.

Finance: Turn a Fixed Cost Into a Financial Win


Unemployment insurance may seem like a fixed cost, but your rate is directly tied to turnover and how many claims you win.



UC Alternative benchmarks your current UI tax rate, sets annual savings targets, and equips your team with the guidance needed to reach them. Through clear quarterly reporting, we show how benefit charges are trending across locations and also break down loss types to help you spot avoidable patterns. With those insights, your team can act sooner, reduce risk, and build a stronger defense over time.

Take a Closer Look at the Numbers


In our CFO’s Guide to Reducing Unemployment Costs Through Performance-Based Pricing, we explain how a performance-based pricing model works and why it leads to deep cost reductions.


Read the Full Guide


Healthcare business handshake
– GETTING STARTED –

What to Expect During Onboarding

With over 30 years of experience guiding multi-state employers through this process, we’ve built a fast, straightforward onboarding approach that’s easy on your team. The entire implementation process usually takes just a few weeks, depending on your size and complexity. 

Once we establish a partnership, we hold a kickoff meeting to walk through what is needed, which is typically just a few files and signed powers of attorney (POAs) for the states where you operate. We assign a dedicated implementation expert to lead your rollout, so we’re with you every step of the way. When setup is complete, we begin managing claims immediately. 

Though we take full ownership of claims management, you’ll always have visibility through clear reporting via your customized dashboard, strategic check-ins, and support from a hands-on team. 

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