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DEMAND FACTOR: Rising Need for Healthcare Professionals

The need for healthcare professionals has shown unprecedented growth during the last 15 years. Employment in the healthcare industry is projected to increase 22 percent through 2016, compared with 11 percent for all industries combined. This is twice the rate of job growth in non-healthcare professions (Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2008-09 Edition, Health Care). The Bureau of Labor Statistics also predicts a need for three million healthcare workers to fill job openings created by departures and new positions. (Bureau of Labor Statistics, U.S. Department of Labor, Career Guide to Industries, 2008-09 Edition, Health Care). There are several factors that drive this rising need for healthcare professionals: Aging population, increasing health risk factors across the entire population of the U.S. and a need for healthcare reform to cover more people who need to be served by the healthcare industry. Combined, these factors will continue to provide a stable increase of business in Internet healthcare job advertising, healthcare recruiting and staffing.

AGING POPULATION

According to the U.S. Census Bureau, the United States population will increase 12% by 2020. Beginning in 2012, a rapid increase in the elderly population will lead to dramatic demographic changes. Between 2012 and 2020, the population younger than age 65 will maintain an annual growth of 9 percent, while the population age 65 and older is projected to grow by about 50 percent. This will also lead to a significant increase in the number of people in need of healthcare. Estimates predict an increase upwards of 36 million individuals, of whom almost 24% will be age 65 and older.

In this environment of aging individuals, the largest segment of the U.S. population, the baby boomers, is entering into retirement age with ever-escalating demands for healthcare services. The Baby Boomers are not only the largest part of the US population, but also are the biggest spenders for healthcare services. In 2006, people over 50 represented only 12% of the population, but accounted for 21% of all US spending. As more Baby Boomers approach retirement, their healthcare expenses will increase, reaching a projected $4.27 trillion by 2017.

Another factor contributing to a higher healthcare demand by the aging population is a high rate of chronic health conditions in this group. The table on the right shows that people 65 years old and over are experiencing very high levels of chronic medical conditions.

The aging population is continually placing increased pressure on the healthcare industry. This phenomenon is one of the leading factors for the growing demand for healthcare specialist in all fields of medicine. Persons of advanced age need hospitalization for serious chronic conditions, and healthcare providers have to constantly increase their personnel in order to properly staff their facilities in times of limited supplies of medical specialists. Hospital utilization is significantly higher among older people. The U.S. Department of Health and Human Services reported that people over the age of 65 comprised 38 percent of all inpatients.  

The third factor influencing the demand for health-care services is that the baby-boomer generation. Unlike their parents’ generation, Baby Boomers prefer a much more dynamic lifestyle after retirement and must be healthy to enjoy this way of life. Studies show that people between 65 and 70 decrease their stay in hospitals in favor of outpatient care. This trend will continue and push the age of hospitalized patients much further. Thanks to the needs of the Baby Boomers, more openings for physical therapists, occupational therapists and nurses will be will happen outside of acute care facilities. At the same time, in hospitals, the need for those professionals is increasing even more dramatically.

DEMAND FACTOR: Increased Risk Factors for Health Problems

Aging, by itself, is not the only factor increasing the health risks. Sedentary life, high stress and unhealthy food habits lead to major health conditions. Other important factors identified as main sources of health problems are:

HIGH STRESS

High stress leads to serious health condition and represents a factor for 75 percent of illnesses and diseases. Studies suggest that the high levels of cortisol from chronic stress can increase blood cholesterol, triglycerides and blood pressure. These are traditional risk factors for heart disease, accordingly by studies published by James A. Blumenthal, Ph.D.

Job insecurity adds to higher levels of stress – and another factor increasing stress in the workplace is constant pressure for higher productivity with a reduced workforce. Outside of the job environment, stress increases as the effects of the overall economic uncertainty deepen. Plus, the mortgage crisis and other personal financial problems add to the stress related conditions.

Studies by the American Medical Association (AMA) have shown the negative effects of stress on health. Stress accounts for two-thirds of family doctor visits and half the deaths of Americans under 65, according to the U.S. Centers for Disease Control and Prevention (CDC). High levels of stress are listed as the main cause for acute heart conditions. Stress is also the principal contributor for the worsening of other conditions, such as high cholesterol, high blood sugar and psychiatric pathologies.

OBESITY & SEDENTARY LIFESTYLE

More than two-thirds of adults in the United States are overweight and obese (total overweight and obese: 66.5%), and 33.2 percent are obese (Overweight /obesity, ages 20+: US, 1988-2006, Source: NHANES, Author: CDC/NCHS) Approximately 300,000 adult deaths in the United States each year are attributable to unhealthy dietary habits, physical inactivity or sedentary behavior. (David B. Allison; Kevin R. Fontaine; JoAnn E. Manson; June Stevens; Theodore B. VanItallie, Annual Deaths Attributable to Obesity in the United States, JAMA.1999;282(16):1530-1538.) Each year, obesity directly causes at least 112,000 excess deaths in the U.S. (Katherine M. Flegal; Barry I. Graubard; David F. Williamson; Mitchell H. Gail. Excess Deaths Associated with Underweight, Overweight, and Obesity, JAMA). Less than one third (31.8%) of U.S. adults get regular leisure-time physical activity. The lack of physical activity and the increased consumption of saturated fat and processed sugar are the main risk factors for many diseases, such as diabetes, heart disease, stroke, hypertension, gallbladder disease, osteoarthritis (degeneration of cartilage and bone joints), breathing problems, and some forms of cancer (uterine, breast, colorectal, kidney, and gallbladder).
As the prevalence of obesity and other weight issues has increased in the United States, so too have related healthcare costs – both direct and indirect: Direct healthcare costs are preventive, diagnostic, and treatment services (physician visits, medications and both hospital and nursing home care). Indirect costs are the value of wages lost by people unable to work because of illness or disability, as well as the value of future earnings lost by premature death.

OTHER DEMAND FACTORS: PROPOSED NATIONAL HEALTHCARE REFORM

Independently of different approaches to payment, healthcare plans and insurance aspects, the U.S. government and legislators are committed to pass a healthcare reform in the very near future. One of the aspects debated in the proposals for the healthcare report is to increase healthcare services to people currently without health insurance. No matter how this issue will be solved – who will be paying, what type of plans will be chosen – it is certain that more people will be covered by health insurance. That means more need for healthcare professionals across all specialties and for the entire country.

TECHNOLOGY

Advances in medical technology will continue to improve the survival rate of severely ill and injured patients, who will then need extensive therapy and care. New technologies will make it possible to identify and treat conditions that were previously not treatable. Medical group practices and integrated health systems will become larger and more complex, increasing the need for office and administrative support workers (BLS). With more and more pressure to use electronic records, the demand for technology-savvy healthcare specialists increase. That demand extends not only to hospital IT personnel, but to all activity fields in healthcare facilities. This creates additional pressure for hospitals to find skilled employees to operate new diagnostic or treatment machines. It also increases the demand for highly educated, technology-savvy healthcare specialists.
What was more than sufficient 20 years ago to perform the duties of a nurse, physician or a radiology technologist, now is only 20% of the daily routine for those professions. Tasks related to heavy computer usage, complex legislation, and complicated prescription drugs issues are part of everyday life for these specialists. There is an ever-increasing need to find technology-savvy professionals who are staying up to date with the scientific advancements in their field.

CULTURAL DIVERSITY

The United States has been a multicultural country since its inception. In recent decades, it has become more and more important to provide medical services in other languages (Spanish, Creole, etc.) This need drives the constantly increasing demand for multilingual healthcare specialists.

LEGAL & REGULATORY

Recent governmental mandates have further increased the demand for qualified healthcare professionals. Legislative initiatives determining nurse to patient staffing were introduced in many states. While California is the only state to have passed such initiative, it is expected however, that staffing ratio laws will be ratified in states throughout the country and may be initiated at the federal level as well. Numerous professional associations for physical therapists and other allied health specialists are also lobbying for similar legislation, which would increase the demand for more professionals in those fields.

In the proposed national staffing ratio law, an LPN cannot be hired as RN to satisfy shortages. This will put additional pressure on the RN hiring process nationwide.