Human resource management plays a significant role in the health care industry, including hiring, determining compensation, mandating policies concerning employees, and determining compensation. As health care is a labor intensive industry, in which outcomes are dependent on the quality of human resources, one can say that human resource management is a mission-critical function.
One function human resource departments perform in the industry is verifying that employees have legitimate credentials and that all their certifications are up to date. This is important in both quality of care and in preventing and defending from lawsuits.
Next, human resources departments need to set compensation in a way that balances two opposing imperatives. First, as employee compensation is a significant part of annual health care budgets, it's important to control, costs. On the other hand, it is important to set wages at a level that will allow an organization to attract high quality staff in an industry where there are often positions going unfulfilled due to shortages of qualified personnel.