The rise in COVID-19 cases due to the delta variant “continues to exacerbate the shortage of hospital workers, hampering recruitment and retention, driving up wages and weighing on hospitals' profitability,” according to a report released yesterday by Moody’s Investors Service. 

“In some US regions, hospitals have suspended elective overnight surgeries due not just to a rise in cases but also insufficient staffing, resulting in lost revenue,” the credit rating agency said. “Unlike prior labor shortages, the current shortage includes clinical staff, such as nurses, respiratory therapists and technicians, but also non-clinical workers such as dietary and environmental services staff. 

“Over the next year, we expect margins to decline given wage inflation, use of expensive nursing agencies, increased recruitment and retention efforts, and expanded benefit packages that include more behavioral health services and offerings such as child care. Even after the pandemic, competition for labor is likely to continue as the population ages — a key social risk — and demand for services increases.”
 

Related News Articles

Headline
Employment at hospitals and health systems fell by more than 8,000 jobs in September, as U.S. jobs overall increased by 194,000, according to preliminary data…
Headline
The House Ways and Means Committee today started its budget reconciliation markup of the Build Back Better Act, which will consider a number of health…
Headline
Hospitals and health systems employed nearly 3,200 more people in August, as U.S. jobs overall increased by 235,000, according to preliminary data …
Headline
At the urging of the AHA, the State Department this week said that because of the emergence of the COVID-19 delta variant and continued demand for health care…
Headline
The Health Resources and Services Administration has extended to Sept. 20 the deadline for health care providers, associations and federally qualified health…
Perspective
Given the recent upsurge in COVID-19 cases around the country, we can’t say how much longer the official public health emergency will last. But we do know that…