Industry Update: Healthcare

February 15

Everyone is touched by today's unprecedented global economic situation. Healthcare, although less directly affected than other industries, is also impacted by these complex issues. Healthcare institutions derive much of their funding from Wall Street bonds, as well as philanthropic individuals and organizations donating large sums of money for new units, updated technologies, or facilities on the hospital campus. Another source of revenue for hospitals is elective surgeries – those not covered by healthcare insurance – so that when people cut back spending they often elect not to have those procedures, and thus, fewer elective surgeries are performed.

When these revenue sources are reduced, a healthcare organization is affected as well. Capital projects are put on the back burner, expansion plans are halted and staffing plans may be reduced.

It is critical to stay competitive and to maintain the employment message and the integrity of the healthcare brand. Staffing shortages still remain alarmingly high and this affects a wide span of workgroups. Looking ahead, the healthcare staffing outlook for the next 5+ years still has critical shortages. Organizational hiring goals reflect this need for qualified and experienced staff to provide a high standard of care. Patient care depends on human capital, and in order to maintain that level of care, organizations must maintain adequate staffing for their units.

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