The pandemic made a mark on many different industries, but healthcare took a particularly heavy hit. Even years later, we’re still seeing the fallout in terms of labor shortages.
That’s particularly true in the senior care industry. The situation is so dire that some experts are calling it a staffing apocalypse.
A Closer Look at Labor Shortages in Senior Care
The American Health Care Association (AHCA) and the National Center for Assisted Living (NCAL) released a joint report in mid-2022 with some sobering statistics on senior care staffing. Since the pandemic, more than 14% of workers in the nursing home sector have left for other jobs.
As a result, more than 60% of Residential Care Facilities for the Elderly (RCFEs) are currently having to limit new patient admissions.
The situation continues to worsen. A more recent AHCA survey revealed that:
- 86% of nursing homes report moderate to severe staffing shortages
- 96% struggle to hire new staff
- 78% have hired temporary staff as a stopgap measure
- 90% have increased wages or offered bonuses to attempt to retain staff
Burnout throughout the pandemic absolutely plays a role in this staffing shortage — and that effect has rippled out. As some RCFE employees reached the point of burnout and pursued other careers, it increased the demands on the employees who stayed.
As a result, many nursing homes have had to turn to contract agencies. These costs have skyrocketed, more than doubling post-pandemic. Consequently, many RCFEs are financially spread thin, limiting their ability to invest in the staff they do have.
Ultimately, the situation presents difficulties for nearly every elderly care facility in the country. Fortunately, help could be on the way in the form of legislation like the Care for Our Seniors Act, which would incentivize new employees into the senior care field. In the meantime, though, facilities need to find a way to move forward despite the historic staffing shortages.
Using Insurance to Navigate What’s Ahead
With such a challenge to face in the form of the labor shortage, RCFEs don’t need any additional financial burdens. That’s why the right insurance policies make such a big difference.
If you’re setting aside money to provide staff with raises or bonuses as a retention tactic, you don’t want to have to pivot to use that money to address a slip-and-fall accident, for example. With the right liability coverage, your insurance policy can step in to cover costs so you don’t have any unwelcome financial surprises.
Similarly, if your facility has to close for an unexpected reason (like a fire), business interruption insurance makes it possible to keep paying your employees. This directly mitigates your risk of losing them while you sort the situation out.
With comprehensive insurance planning behind you, you’re in the best position to minimize financial surprises. And that lets you allocate resources where you need them: toward finding new staff and retaining the employees you have. Whether you invest in training, employee appreciation measures, or more enticing compensation packages, you can help your RCFE stand out and attract the team you need.
And you don’t have to divert your attention from your staff to get the insurance you need, either. To have a team of experts develop the right coverage plan for you, call us at (805) 413-5668.
