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Eight of 10 healthcare executives say difficulty attracting and retaining talent is a serious risk to business—a reflection of ongoing labor issues in healthcare.
Why it matters: The healthcare industry continues to face a talent crisis, according to a PricewaterhouseCoopers (PwC) August Pulse Survey. Severe clinical workforce shortages combined with increased patient demand is leading to higher prices.
PwC’s Health Research Institute predicts the combination of factors will help increase medical costs by 7% next year, up from 6%.
- “Assuming the persistence of the staff shortages in 2024, hospitals will continue to be financially challenged and seek higher reimbursement from payers. Hospitals and physicians are expected to seek higher rate increases (potentially also at a higher frequency) in contract negotiations,” PwC wrote.
By the numbers: The PwC survey found 82% of healthcare executives were worried about talent retention, compared to 71% from other industries.
What they’re saying: “To become better positioned to attract and retain talent, healthcare execs are starting to rethink their traditional workforce and business models and invest in technology and innovation,” PwC wrote, pointing to more tailored benefits and redefined care models.
The big picture: Healthcare providers are increasing labor actions, including going on strike, pushing health systems to increase staffing and compensation.
- Tens of thousands of Kaiser Permanente workers began voting on whether to authorize a strike which could happen as soon as October.
- Nurses in California, Illinois, and New Jersey have all held strikes this month.
- And in the United Kingdom, doctors held a two-day walkout last week.
Behind the numbers: The PwC survey, conducted in early August, surveyed 609 U.S. executives from public and private companies in six sectors. Healthcare represented 7% of the respondents.
