
Contributor: Medicare’s Leadership Needs to Confront Our Shrinking US Workforce
Medicare’s administered pricing system has never had to deal with labor scarcity before.
Fifteen years ago, the Institute of Medicine issued its report, “
Labor shortages are beginning to impact patient care. Media reports indicate numerous instances of
I’m an advocate for patients who have
A Dialysis Patient Citizens survey of members last month found 62% of patients said recent labor shortage had an impact on their care: Of this group, 43% said that staff turnover disrupted their care, 28% reported delays to their treatment, and 7% reported they had to change shifts or facilities. In 2013, in response to a question about wait times at facilities, 14% of patients each reported increases in wait times and decreases in wait times. This year, 24% reported increases in wait times and only 11% reported decreases.
There are at least 3 dimensions to workforce shortage issue that policymakers need to consider:
The pool of workers available for health care jobs is shrinking. Over the next decade, the number of people of working age in the United States will increase by only 3 million (∼1%) while the 65-and-over population will rise by 17.5 million (30%), according to
“Despite looming talks of recessions,” the report’s authors continued, “Indeed and Glassdoor economists believe that hiring will remain challenging for years to come, driven by demographics and evolving preferences. Workers will continue to have the leverage to press for higher pay, stronger benefits, scheduling flexibility, and a variety of other perquisites.”
The pool of candidates for health care occupations could potentially shrink further, given the decreases in standardized math and reading scores for fourth and eighth grade students and the doubling of students considered chronically absent
Jobs that are challenging and require in-person performance at a fixed workplace will likely require a premium in salary over those that do not require commuting. The Wall Street Journal recently reported that head counts at
Complicating matters is the fact that health care occupations are not the only essential jobs in our economy. Education, law enforcement, and transportation also have front-line jobs that government must fund. Nevertheless, we need a commitment from government that essential health care occupations will be no less remunerative, nor as remunerative, but more remunerative than nonessential jobs, in accord with American values of compassion and belief that access to health care should be available to all.
Medicare’s administered pricing systems are designed for abundance, not scarcity. It is not clear if Medicare’s traditional price-setting processes are agile enough to adapt to evolving conditions. Medicare’s administered pricing system has never had to deal with labor scarcity before. According to
Also notable is that market basket forecasts by CMS contractors do not jibe with others’.
We have reached a point where, rather than defaulting to parsimonious payments and then waiting for reports of access problems, it would be safer for CMS to begin erring on the side of more generous payments. CMS can monitor cost reports to confirm that any added dollars are spent on paying frontline workers and not going to pad profits, and claw back any overages.
Scarcity and income inequality are a formula for 2-tiered access to care. Policymakers must also begin to consider the impact that income inequality will have on health workforce and health care access. A
In the health care sphere, the fear is that, as
Currently,
Pasquale notes that the United States has maintained egalitarian access to care through “social minimum” mechanisms such as the ban on balance billing by participating physicians and
A common sight at airport security lines is representatives of Clear Secure, Inc, a service that allows travelers to pay a fee to skip to the front of the queue. Employers such as Clear are increasingly competing with health care providers for the same pool of potential workers. The nightmare scenario for Medicare beneficiaries is that providers reliant on Medicare reimbursements won’t be able to compete with employers able to draw revenue from that 10% of the population holding most of the wealth, and manpower will migrate to work with less social utility, or a parallel: go-to-the-front-of-the-line health care system emerges to serve the well-off.
It cuts against the grain to suggest that health care may become underresourced when most analysts see a bloated system flush with cash. One hopes that labor challenges can be addressed by reallocating rather than adding to total expenditures. In any event, some hard problems lie ahead and the time to start work on them is now.
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