Financial impacts are just one of the impending issues
The next several years could be trying times for the hospital industry, financially speaking. And it’s mainly attributed to the nursing shortage.
Providers expect to spend an increased amount on staffing through the year 2025, due to a lack of qualified professionals in the field. A report from Moody’s Investors Service explained that labor costs typically make up a little more than half of a hospital’s budget, but that share will only get higher over the next few years as recruiters re forced to up their offers to attract the best professionals.
The rising costs of pharmaceuticals and technology are already affecting hospital budgets, but the nursing shortage will have a particularly profound effect, due to the rapidly aging U.S. population and corresponding increasing demand for healthcare services.
Worst of all, whether coincidentally or not, many areas with the highest average age among the population—and greatest growth in population—seem to be most impacted by the nursing shortage. Florida, Texas, and California were cited as examples of states in particularly dire circumstances.