Data show nursing facilities continue to experience job losses

By Patti Cullen, CAE  |  January 27, 2023  |  SNF/NF providers

Nursing facilities continue to face an unprecedented workforce shortage in the aftermath of the COVID-19 pandemic, and year-end data from the Bureau of Labor Statistics (BLS) puts the nationwide challenge into stark perspective. Late last week, the American Health Care Association and National Center for Assisted Living (AHCA/NCAL) released a new analysis of BLS data which revealed the following:
  • Nursing facilities have lost 210,000 jobs over the course of the pandemic (from February 2020 to December 2022)
  • The nursing facility workforce is at levels not seen since 1994
  • Job growth in 2022 slowed than previously projected—Nursing facilities added an average of 3,700 jobs per month over the last nine months
    • At the current pace, nursing facilities would not return to pre-pandemic levels until 2027
    • A previous AHCA/NCAL model estimated a recovery in 2026
  • Nursing facilities have experienced the worst job loss of any healthcare sector; while most industries have rebounded to pre-pandemic job levels, long-term care is still struggling

Although providers are working diligently to fill open positions, recruiting new staff remains a major roadblock, with 96% of nursing facilities experiencing difficulty in hiring according to a recent survey of more than 500 nursing facility providers from across the US. Nearly half (45%) of nursing facility providers said their workforce situation has worsened since May 2022. Facilities are eager to hire, offering increased wages and bonuses to attract staff, but the workers simply are not there.
 
Long-term care facilities have been forced to limit resident admissions because of staffing shortages. Hospitals are experiencing significant backlogs as well as patients ready for discharge wait for open nursing facility beds. In some cases, these labor challenges have resulted in nursing facilities permanently closing their doors.

Nursing facilities need financial support as well, as many facilities are operating on shoe-string budgets because Medicaid reimbursements rates often fall below the actual costs of care. Added pressures of increasing labor costs and inflation have left nursing facilities with little resources to make additional investments in their staff and compete for workers.
 
Nursing facilities across the nation are working to rebuild their workforce, but they cannot do it alone. Lawmakers need to prioritize the long-term care industry by providing meaningful and comprehensive solutions that address the root of workforce shortages, so seniors have access to the quality care they deserve. 


Patti Cullen, CAE
Patti Cullen, CAE  |  President/CEO  |   pcullen@careproviders.org  |  952-851-2487