Talent crunch hits healthcare
The numbers
Many countries are facing a physician shortage. According to data from the AAMC, the United States could see an estimated shortage of 124,000 physicians by 2034. A study conducted by the Robert Bosch Stiftung anticipates that by 2035, some 11,000 primary care physician positions will be unfilled in Germany, and that nearly 40% of counties will be underserved or at risk of undersupply.
Corona has further exacerbated the problem. A Wall Street Journal article points out that the cost of salaried nurses has risen massively in recent months, and that some hospitals are unable to find staff despite their high starting salaries. As a result, travel-nurse pay has skyrocketed. In December 2019, average gross weekly wages for a travel nurse were around $1,600. One year later, average pay was more than $3,500 a week.
The bigger picture
Labor shortages are one of the most important economic problems, especially in the highly specialized healthcare sector. New political regulations and incentive structures are intended to bring the profession back into the mainstream, with a particular focus on underserved areas.
On the other hand, this development naturally promotes innovations in the healthcare market. There is no doubt that the COVID-19 pandemic will be the tipping point that changes the way healthcare providers and patients use Digital Health and MedTech offerings.
However, market imperatives ensure we will not be able to offer more patients improved digital access to healthcare services—at least not immediately. Anyone can become an Uber driver within a couple of weeks. But a physician-in-training spends more than 10 years in school and residency before he or she can fully join the market.
That's why the past few months have also shown that innovations aimed at reducing healthcare staffing levels and decreasing dependence on skilled workers certainly offer potential. Examples include improved training offerings, job portals, automation efforts, and the ongoing consumerization of healthcare services.