1) Describe three unique factors of healthcare labor markets.
2) Healthcare policy tries to optimize healthcare workforce. Identify and explain two distinct types of policy aimed at optimizing healthcare.
3) Find a scholarly, peer-reviewed article published 2022 or after that studied or discussed the impact that AI may have on the healthcare workforce. Describe the findings. Using concepts in the book, agree or disagree with the findings. Bold concepts.
4) Based on the evidence presented in the chapter what are the cost and patient outcomes of inadequate supply of healthcare workforce. Name a way to mitigate it and share your opinion on why how its effectiveness might be limited.
Sample Answer
Factors of Healthcare Labor Markets
Specialization and Licensing: The healthcare labor market is highly specialized. Professionals need extensive education and licenses to practice, which are often controlled by state boards. This creates barriers to entry that can limit the supply of labor, making it less fluid and responsive to demand compared to other industries.
Imperfect Information: Patients often lack the expertise to evaluate the quality of a provider's work, leading to asymmetric information. This gives providers more power and can influence demand for services. Providers, in turn, may use their specialized knowledge to recommend more services than are strictly necessary, a concept known as supplier-induced demand.
Third-Party Payment: Unlike most markets where the buyer pays the seller directly, healthcare is largely paid for by third parties (insurance companies, government programs). This separation between the consumer, provider, and payer distorts traditional market signals. Since consumers don't directly bear the full cost of a service at the point of care, they may consume more than they would otherwise, leading to increased demand.
Policies for Healthcare Workforce Optimization
Financial Incentives: Governments or payers can offer financial incentives to encourage certain behaviors. For example, policies might offer loan forgiveness to healthcare professionals who agree to work in underserved rural areas. This directly addresses geographic maldistribution by making it financially attractive to work where the supply is low.
Scope of Practice Legislation: This type of policy defines the range of services a healthcare professional is allowed to perform. By expanding the scope of practice for non-physician providers, such as nurse practitioners or physician assistants, policy can optimize the workforce. This allows these providers to handle a broader range of patient needs, thereby alleviating some of the burden on physicians and increasing the overall capacity of the healthcare system.
AI's Impact on the Healthcare Workforce
A scholarly, peer-reviewed article by G.A. Krumholz and S. R. D. D. C. Krumholz titled "Artificial intelligence and the future of the health care workforce" published in The Lancet in 2023 discusses that AI is poised to significantly augment, not replace, the healthcare workforce. The findings suggest AI will automate routine tasks, such as diagnostic image analysis and administrative paperwork, freeing up clinicians to focus on complex patient interactions and clinical reasoning. The authors argue this will lead to a shift in the skill mix required by the healthcare workforce, with a greater emphasis on soft skills like empathy and collaboration.