Hospitals see job losses again after a month of growth

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The healthcare industry has been recovering from the COVID-19 pandemic in fits and starts, and while there are some signs of encouragement, particularly when it comes to volumes and reimbursement, the latest data from the U.S. Bureau of Labor Statistics shows that the sector lost jobs in June following a small increase in May.

Overall, after gaining about 22,500 jobs in May, healthcare lost 12,000 jobs in June. Nursing and residential care facilities saw the biggest losses, with roughly 9,600 jobs lost during the month. Of those losses, 3,600 occurred at nursing care facilities and 3,500 at residential mental health facilities.

Hospitals lost 5,500 jobs during the month after gaining 2,900 in May. Community care facilities for the elderly shed 1,000 jobs, and other residential care facilities saw losses totaling about 1,500. Medical and diagnostics laboratories lost roughly 1,800 jobs.

Despite those losses, however, there were some gains in other healthcare subsectors. Physicians' offices saw 4,100 jobs added during the month, continuing a trend of incremental job gains over the past several months. Ambulatory healthcare services have shown a similar pattern, adding jobs steadily in small amounts and totaling 2,900 jobs gained during June.

Dentists' offices added 1,900 jobs and outpatient care centers added 1,800. Other ambulatory healthcare services added about 200 jobs.

In total, the U.S. gained 850,000 jobs in June across all sectors, though the unemployment rate rose from 5.8% in May to 5.9% in June.

WHAT'S THE IMPACT?

The numbers are significant because, while healthcare in general has added jobs steadily over the past several months, the continued loss of jobs in hospital settings is an ongoing trend likely exacerbated by continuing financial struggles.

It's unclear at this point how the employment numbers will affect the ongoing physician shortage. Data published last month by the Association of American Medical Colleges shows the U.S. could see an estimated shortage of between 37,800 and 124,000 physicians by 2034, including shortfalls in both primary and specialty care.

Primary care, including family medicine, general pediatrics and geriatric medicine, is on pace for a shortage of between 17,800 and 48,000 physicians. But the numbers for non-primary care specialties are even direr: A shortage of between 21,000and 77,100 physicians is expected over the next several years.

THE LARGER TREND

A large portion of the physician workforce is nearing traditional retirement age, and supply projections are sensitive to the workforce decisions of older physicians. More than two of every five active physicians in the U.S. will be 65 or older within the next decade. Their retirement decisions will dramatically affect the magnitude of national workforce shortages.

Meanwhile, if marginalized minority populations, people living in rural communities and people without health insurance had the same healthcare use patterns as populations with fewer barriers to access, up to an additional 180,400 physicians would be needed immediately.

While job numbers are concerning for hospitals, other metrics are improving: Volumes and margins both increased compared to 2020, according to the June Kaufman Hall Flash Report, but are still below 2019 levels. Total expenses and revenues rose above both pandemic and pre-pandemic performance.

The numbers are a further indication that the severity of the pandemic is beginning to wane, both in terms of virus transmission and the financial health of the nation's hospitals.

The seven-day moving average of new COVID-19 cases fell 63% over the course of the month, from 49,478 on May 1 to 18,134 on May 31, according to Centers for Disease Control and Prevention data. The seven-day moving average of new admissions for patients with confirmed COVID-19 fell 44%, from 4,805 on May 1 to 2,705 on May 31.
 

Twitter: @JELagasse
Email the writer: jeff.lagasse@himssmedia.com