As the Delta variant continues to spread, it is also prolonging the shortage of workers across the healthcare industry, straining hospital profitability and adding to burnout rates, according to a report from Moody’s Investor Service. In addition, the shortage of hospital workers has hampered recruitment and retention and driven up wages, and that report predicts will continue into next year. Therefore, this will lead to a further decline in profit margins.
“Even after the pandemic, competition for labor is likely to continue as the population ages – a key social risk – and demand for services increases,” the report concluded. “Even if the near-term shortage is contained, rising demand for healthcare as the U.S. population ages will continue to put pressure on the supply of nurses and workers over the longer term.”
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Written by: Nathan Eddy