While the pandemic has reduced admissions, hospitals across the US face higher costs for labor, drugs, and supplies.
While the pandemic has reduced admissions, hospitals and health systems across the US are facing higher costs for labor, drugs, and supplies, according to new research.
“This is a long-term cyclical problem. It takes a very short period of time for somebody to leave the profession. It takes a much longer time for somebody to get competitive and skilled as a nurse or doctor,” said Steve Lefar, chief strategy officer at Strata. “We saw a huge drop in patient demand at the beginning of the COVID-19 pandemic. Over time as hospitals and patients got more comfortable in this new phase, volume started to come back, but it has never hit those 2019, pre-COVID levels,” said Jennifer Ittner, senior director at Strata.
Additionally, Lefar encouraged administrative areas to monitor all spending unrelated to labor. Systems that are focused primarily on managing demand become vulnerable to losing current supply. Concentrating only on funding contract agencies prevents hospitals from investing those costs in their existing employees, leading to low morale and high turnover.
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