Understanding the Impact of the COVID-19 Pandemic on Health Systems' Workforce Challenges.

Health systems continue to face workforce challenges as the COVID-19 pandemic continues. Widespread and persistent staffing shortages have led systems to raise wages and strengthen hiring and retention efforts. Still, many face burned-out workforces, high turnover, and heightened labor costs.

The COVID-19 pandemic has created numerous labor challenges for the healthcare industry over the past three years, pushing hospitals and clinicians to their limits. Staff burnout is widespread, as nurses and executives grapple with a workforce shortage that has been made worse by pay disputes in many regions. Healthcare workers have even gone so far as to mount strikes in order to gain higher wages and improve conditions. As health systems look to return operations to pre-pandemic levels while also stemming rising labor costs in 2023, these trends are predicted to continue causing difficulties throughout the year.

Persistent staffing shortages and the utilization of contingent labor continue to be a challenge for many organizations. 
Companies must assess where current gaps exist and how best to address them in order to remain competitive. Addressing these planning issues is both complex and necessary in today's economic environment.
Hospitals are expecting to remain short-staffed this year, especially in the nursing department. An excessive rate of burnout and an increase in turnover have left expensive labor gaps that need to be filled with contract staff despite decreasing COVID-19 hospitalization rates. These staffing shortages present a significant challenge for hospitals across the country.
Analysts at Jefferies predict that demand for contract labor costs will normalize to about 60% higher than 2019 levels by the end of 2021, should there not be another wave of COVID-19. The statement was made in January's healthcare equities brief.
The rising difference in expenses between full-time employees and contracted staff is leading healthcare providers to reevaluate their compensation arrangements for their full-time personnel.

The healthcare sector has seen a surge in professional collaborations and organizing. 

Residents and interns are showing a heightened interest in organizing. This is leading to an increase in collaborative activity across these groups.

Recent years have seen an increased focus on union activity and advocacy among healthcare professionals, particularly resident physicians. This has been driven by organizations such as the Committee of Residents and Interns, part of the Service Employees International Union. As healthcare workers continue to grapple with the demands of working through a pandemic, efforts to improve labor conditions remain ongoing.
CIR-SEIU has experienced significant success in expanding union representation for doctors in training over the past few years, highlighted by five election wins in 2022 and four more in 2021. The union currently depicts 25,000 members. In 2022, organizing efforts will persist with Montefiore Medical Center and Lifelong Medical Care both engaging in a vote on their respective unions. Last year proved to be a tumultuous one with numerous cases involving strikes; luckily, this was avoided thanks to successful negotiations between medical professionals and the hospitals where they work.
Unscheduled strike activity from resident physicians presents a distinct challenge for healthcare facilities. According to John August, Director of Healthcare Labor Relations at Cornell's School of Industrial and Labor Relations, these strikes threaten the facility’s ability to keep operations afloat due to the difficulty in replacing resident physicians as opposed to nurses. Unionized residents are campaigning for improved compensation and sufficient job support, similar to other healthcare personnel.

Burnout is a growing concern for healthcare executives
As reports indicate that nearly 75% of surveyed healthcare executives are experiencing burnout symptoms. The December WittKieffer study revealed that executives felt significantly less productive and capable of tackling work challenges. Consequently, many are considering career changes due to emotional exhaustion and a lack of determination to make an impact in their field.
WittKieffer's Senior Partner Rachel Polhemus notes that many executives who are leaving their posts likely delayed retirement to help their organizations navigate the pandemic. According to Polhemus, this wave of retirement presents an opportunity for new leaders to step up and take charge. However, replacing executives post-pandemic may be difficult as organizations are now seeking candidates with experience in executive roles placed during a crisis. She additionally noted that job seekers have taken a closer look at organizations' management approaches when considering offers. As such, hospitals will prioritize those with relevant histories in dealing with crisis situations during the pandemic.

----------------------------------------------------------------------------------------------------------------
Please note that the information in these materials is for general informational purposes only. It is not intended to constitute legal or compliance advice, and you should not act or refrain from acting based on any information provided in these materials. Neither Centaur Billing nor any of its employees are your lawyers. If you have specific legal or compliance questions, please consult with your own legal counsel or compliance professional.