Not Just Senior Living…Hospitals Too

Lately I’ve written a fair amount (multiple articles) regarding the economic conditions in senior living/post-acute care. The current economic headwinds of rising capital costs/interest rates, labor scarcity, rising costs due to labor scarcity and commodity inflation have caused providers to rethink many operating assumptions. Margins have eroded and often, decisions about additional volume via admissions, etc., are made based on staff availability.

New projects such as acquisitions or new development have gone fallow. Improvements have been scaled back due capital costs (rising) and access constraints. I’ve written about the difficulty home health agencies have in terms of accepting new cases due to insufficient staff coverage. This referral pattern shift has bogged down hospitals and outpatient surgery providers.

In some cases, the additions of new programs and services have simply languished due to insufficient staff numbers or rising costs such that viability has eroded. Senior living/post-acute care have faced the greatest labor challenges as shortages in this unique workforce are more profound (folks that choose to work in these settings vs. other health care settings).

This afternoon I read a brief article in Becker’s Hospital News regarding hospitals and their executive teams facing similar operating challenges due to the economic conditions in-play. It’s a good read and a reminder that there is a certain amount of universality when times are economically challenging due to conditions beyond the control of the business – in this case, health care businesses. The article is available here:


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