Business Advisor: Meeting the Demand for a Larger Workforce

Access to quality care is at stake if the financial puzzle isn’t solved.

The aging population has increased the need for healthcare services as older individuals require more medical services and care. There’s a supply-and-demand mismatch of crisis proportions, however, as the training capacity for healthcare staff hasn’t kept pace with this rising need.

Unpacking a complex problem

Insufficient resources, the money woes of healthcare organizations and other factors have led to a national labor workforce shortage, which strains those who remain and contributes to burnout and dissatisfaction among them. The high turnover rates that result compound the problem.

These complex problems require comprehensive strategies to solve that must include increased training capacities, better working conditions and fewer workforce distribution disparities — as rural areas are impacted more than urban locales. Here’s how I think we should work together to tackle the issue, based on my experience as an anesthesia consultant and a review of literature on the subject.

What’s at stake?

The lack of a sufficient amount of healthcare workers leads to reduced access to quality care, which could lead to delayed diagnoses, limited treatment options and poor outcomes. The actual delivery of care is hurt as well. Patients must to wait longer for treatment, which results in more emergency room visits and worsening health conditions overall.

The shortage has economic impacts as well. Fewer workers as demands for services increase means organizations must to pay their employees more to get them and keep them, which increases costs and puts organizations in financial distress. More overtime and hiring costly temporary workers to quell the labor shortages make matters worse. The increased costs are passed on to consumers, private insurance companies and government healthcare programs. The shortage also hinders innovation, impeding medical research and healthcare technology advancements. The U.S. Department of Labor Statistics projects that the demand for registered nurses will grow by 7% from 2019 to 2029, faster than the average for most occupations, but the American Association of Colleges of Nursing estimates the RN shortage could reach 800,000 by 2030. The Association of American Medical Colleges, meanwhile, projects the shortage of physicians will range from 54,100 to 139,000 by 2033.

Medical and nursing education programs have been unable to keep up with the growing demand for healthcare professionals due to the unmet need for qualified faculty at their respective training programs. Limited training slots in medical schools, fewer academic instructors and insufficient residency training sites create a bottleneck in the pipeline of healthcare workers, contributing to the shortage.

The workforce is also aging, so they’re either retiring, leaving the field early or reducing their hours because of the emotional toll of working in high-stress environments.

What’s the fix?

The strategies must include recruitment and retention plans surrounding existing healthcare professionals, increased educational opportunities and governmental policy changes.

First, we must increase the educational capacity of our training programs. Investing in expanding educational programs such as medical schools, nursing schools and allied health programs would increase the number of healthcare professionals entering the workforce. This includes funding for faculty, facilities and clinical training opportunities. We must also implement targeted recruitment strategies to attract individuals to healthcare professions and reach out to underrepresented communities, offering scholarships and financial incentives, as well as showcasing the rewards and opportunities within healthcare careers.

Expanding the role of advanced practice providers such as nurse practitioners and physician assistants can also help fill the gap in patient care services. Telehealth programs coming online by leveraging artificial intelligence technology to provide remote care could expand access to pre- and post-op services in underserved areas. Organizations must improve operational efficiency, optimize staffing levels, negotiate favorable contracts and implement cost-containment measures to mitigate financial underperformance. Balancing economic sustainability while maintaining quality patient care is a central challenge for healthcare organizations operating in a climate of rising labor costs.

Policy recommendations

Federal, state and local governments can allocate financing and grants to educational institutions and healthcare organizations to expand educational programs, increase faculty and enhance clinical training opportunities. They could also implement recruitment-and-retention regulations for healthcare facilities that would include a revision of scope-of-practice laws to allow advanced practice providers to work to their full potential and reduce administrative burdens.

Public investments in workforce planning efforts that anticipate future healthcare workforce needs would go a long way toward meeting the evolving demands of the healthcare system. By analyzing demographic trends, population health data and healthcare utilization patterns, governments could strategically align educational programs and recruitment efforts to help.

A public-private collaboration could establish financial incentives such as loan forgiveness programs, scholarships and grants to encourage individuals to pursue healthcare careers and practice in rural and other underserved areas. Policymakers could also invest in data collection and research on healthcare workforce trends, supply and demand projections and factors affecting workforce shortages to craft targeted, evidence-based interventions into the marketplace.

Solving this crisis will require significant monetary investments, but expanding the healthcare workforce would mitigate the cost through increased productivity and improved access to care. By investing in these strategies, our country can alleviate the financial burdens felt by the healthcare industry, ensure access to affordable care and promote a healthier and more prosperous society. OSM