Question

Do you think that the 2008-2009 crisis and economic downturn impacted the size of operations of the healthcare industry? If so, has the healthcare industry "recovered" and what is the state of the healthcare industry today?

Answer 1

Economic downturns and recessions impact the healthcare sector with varying effects on the demand, supply and other labour market indicators for nurses depending on the jurisdiction On the demand side, they are likely to decrease the demand for nurses as well as the need for nursing services. Restricted availability of public and private funds in the healthcare sector might push healthcare organizations to downsize their operations and consequently the size of their nursing workforce

Recent evidence from the current economic downturns suggests that the health systems in many European countries are contracting or freezing the size of their nursing workforce. For example, despite the estimated shortage of 60,000 nurses in Italy, the Italian government recommended that institutions revisit nursing workforce standards and freeze the recruitment of healthcare workers. Note that younger nurses are disproportionally affected by workforce downsizing since job cuts usually start from the bottom in a unionized environment

Economic downturns affect all sectors of the economy including healthcare They may escalate into a recession, defined broadly as a self-reinforcing reduction in economic activity characterized by persistent job losses precipitating increased unemployment Many countries around the globe are currently in the midst of economic downturns, which are anticipated to grow into a global recession.

Nurses, being the largest professional group in the healthcare sector, are strongly affected by budget balancing attempts. For many institutions, the easiest and fastest means to balance the books is to cut back the nursing workforce as institutions restructure, downsize, merge or actively shift care from hospital to community. Such restructuring may precipitate detrimental and difficult to reverse consequences in the longer run.

Now that the economy of many countries around the globe is undergoing turbulent times, it is important that the recessionary trends in the healthcare sector do not drive policy and decision makers to take decisions that may destabilise the nursing labour market for years to come. In this manuscript, we attempt to examine the effects of economic downturns and recession on the supply and demand of nurses and provide a framework to help healthcare decision makers understand and manage their valuable nursing resources during tough economic times.

The Healthcare Industry has recovered after the crisis As the US health care industry moves toward a financial model that is based on value rather than volume, keeping people healthy and out of the hospital will be key. In a fee-for-service (FSS) model, health systems generate more revenue when patient volume increases. But under a value-based model, a person who shows up at an emergency room or a doctor’s office becomes an expense rather than a source of revenue. Rather than seeing people as patients, health systems should treat them more like members. This shift can help strengthen customer loyalty, build brand and reputation, and even improve the health of our nation