There has been a considerable impact on the healthcare industry as a result of the COVID-19 pandemic. Most notably the healthcare labor market is expected to face shortages over the next five to 10 years as the U.S. continues to grapple with the pandemic, according to Mercer’s "2021 External Healthcare Labor Market Analysis."
The report examined healthcare labor statistics during the next five to 10 years in every state and at the county, regional, and national levels. The main findings conclude there will be a shortage of labor at the low end of the wage spectrum, limiting access to home care. Trends project 6.5 million employees will permanently leave their positions by 2026 with 1.9 million people replacing them. New York and California will have the largest labor shortages, each projected to fall short by 500,000 by 2026.
The good news is many states are trying to address the issue by directing monies from the Provider Relief Fund, American Relief Plan, and/or raising the state’s minimum wage to specifically raise wages for direct care workers. Nearly 2 million direct care workers would get a raise if the minimum wage increases to $15 an hour. However, without adequate reimbursement, minimum wage increases will place health care providers in a financially precarious position.
In 2020, Scioto Properties hired a government affair professional to work with our industry trade associations and provider partners to advocate for issues that impact our industry. I encourage you to reach out to us if your organization requires additional support in your state.
Let’s continue to encourage the positive momentum of 2022!
Matt Mumma
President, Scioto Properties
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