- Reduced Patient Capacity: Fewer nurses mean reduced patient capacity, leading to lost revenue and potential decline in quality of care.
- Increased Overtime and Burnout: To maintain staffing levels, hospitals rely heavily on overtime, leading to staff burnout and potential safety issues. This can increase costs associated with staff turnover and recruitment.
A study by the American Hospital Association (AHA) estimates the direct cost of the nursing shortage to be in the billions of dollars annually [2].
Supply and Demand Challenges:
The nursing shortage stems from a complex interplay of factors:
Demand:
- Aging Population: The aging population creates a growing demand for healthcare services, including increased need for nurses.
- Burnout and Job Dissatisfaction: Demanding workloads, high stress levels, and limited opportunities for advancement contribute to nurse burnout and turnover.
- Shifting Healthcare Needs: Advances in medical technology have increased the acuity level of patients, requiring a higher nurse-to-patient ratio.
Supply:
- Limited Nursing School Capacity: Nursing schools struggle to keep pace with the rising demand for nurses, often limited by faculty shortages and clinical placement opportunities.
- Workforce Ageing: A significant portion of the current nursing workforce is nearing retirement age, further exacerbating the shortage.
- Debt Burden: The high cost of nursing education can discourage some potential candidates from pursuing the profession.
Regulatory Issues:
Regulations can also impact the nursing shortage:
- Scope of Practice Restrictions: Strict limitations on the tasks that Advanced Practice Registered Nurses (APRNs) can perform can hinder their ability to fill some of the gap left by RN shortages.
- Immigration Policies: Immigration policies that limit the influx of foreign-trained nurses can restrict the talent pool.
Strategies to Address the Nursing Shortage:
One key strategy to address the nursing shortage is to invest in the nursing workforce:
- Loan Repayment and Scholarship Programs: Financial assistance can help alleviate the debt burden for nursing students, making the profession more accessible.
- Expansion of Nursing School Capacity: Investing in nursing schools and faculty development can increase the number of qualified nurses entering the workforce.
- Improved Work Environments: Hospitals can prioritize staff well-being by creating supportive work environments with opportunities for professional development and reducing burnout.
- Increased Use of Telehealth: Telehealth can help manage some patient populations remotely, allowing nurses to focus on higher-acuity patients in the hospital setting.
Outcomes of Implementing These Strategies:
Investing in the nursing workforce can lead to several positive outcomes:
- Reduced Labor Costs: By increasing the supply of nurses, hospitals can reduce their reliance on expensive agency staffing and overtime pay.
- Improved Patient Care: Increased staffing levels and a more stable workforce can lead to better patient outcomes and higher patient satisfaction.
- Reduced Staff Burnout: Improved work environments and career advancement opportunities can lead to greater staff retention and reduced burnout.
Conclusion:
The nursing shortage poses a significant financial challenge to hospitals. By understanding the supply and demand factors, navigating regulatory hurdles, and investing in the nursing workforce, hospitals can mitigate the financial impact of this crisis. Prioritizing a stable and well-supported nursing staff is not only a financial imperative but also essential for delivering high-quality patient care.
As a health care manager, you must be able to analyze financial and economic issues in the health care industry. In this summative assessment, you will demonstrate problem-solving skills.
Scenario
Imagine you are a health care manager at a hospital and you are preparing a report for your CFO in which you analyze current issues in health care (e.g., nursing shortages, supply-chain disruption, and telehealth use) and address the financial impact of these issues on your hospital.
Preparation
Select 1 of the following current financial issues that the health care industry faces today to use for this summative assessment: nursing shortages, supply-chain disruption, or telehealth use.
Access the Week 2 University Library and read 1 of the following articles from the Summative Assessment: Problem-Solving Analysis Report section that corresponds to the current financial issue you selected:
Nursing shortage: “As COVID-19 Worsens Nursing Shortage, Madison Hospitals, Schools Step Up”
Supply-chain disruption: “Inflation Rattles Hospital Supply Chain and Labor Pool with no End in Sight”
Telehealth use: “Telehealth Grows, but Medicare Has Woes”
Assessment Deliverable
Write a 700- to 1,050-word report about the financial issue you selected in which you:
Analyze the financial impact of your selected financial issue on the health care industry.
Explain what the supply and demand challenges are for health care services in terms of personnel, supplies, or technology.
Describe how regulatory issues are affecting, or will affect, the health care industry in the areas of personnel, supplies, and technology.
Describe at least 1 strategy to improve the selected financial issue.
Discuss what you believe would be the outcome of these recommendations, if implemented.
Cite sources to support your report.