The hard hit US economy started its slide in 2008 and plummeted in 2009. Healthcare staffing firms across the nation were hammered with loss of revenue and declining profits. Several indicators point to a different outcome if the U.S. slides back into recession.
Healthcare staffing is largely driven by hospital census, the number of patients at any given time being cared for. (inpatient and outpatient) In 2009, an enormous spike in unemployment directly impacted the nation-wide hospital census figures as well as the market demand for healthcare professionals. The widespread unemployment figures created a “chilling” effect on hospital admissions. Those that were left out of work were typically out of benefits, and anything short of involuntary admission was eliminated. Those that remained in the workforce were watching their co-workers being cut from payrolls and decided that that elective surgery that would take them out of the workforce for a few weeks could wait.
Another phenomenon in 2009 was the “flushing out” of retired or non-working healthcare professionals. As a spouse lost their job, the credentialed partner took up the slack by re-entering the workforce as a healthcare worker on a full-time basis to capture income and benefits.
Stay tuned for the next installment that explains why things would be different this time around.