Health Care Workforce Shortages

Health Care Workforce Shortages

Learn more about health care workforce shortages in the United States, the impact on the health care system, and the potential role of artificial intelligence in mitigating the effects.

• State of Provider Shortages: Health care workforce shortages are increasing, impacting access to care and slowing patient care. The decline of primary care clinicians entering the field, coupled with hospitals relying on costly labor contracts to fill gaps, is furthering the strain. The Association of American Medical Colleges projects a shortage of over 85,000 physicians by 2036.
• Rural Access Challenges: A new KFF analysis found that nearly 3 million Americans reside in areas lacking both health care and reliable high-speed internet, creating barriers for patients in predominantly rural areas to access care virtually or communicate through patient portals.
  
• Health Care System Strain: An aging population and rising chronic illness rates are driving demand for complex health care and placing a greater burden on the health care system. Reduced access to primary care may drive patients to more expensive emergency care visits, elevating costs and impacting affordability. In addition, physician burnout is exacerbating shortages, with a recent survey finding that nearly half of physicians reported burnout and one in five experienced depression.
• The Role of Technology: Artificial intelligence (AI) may minimize the effects of workforce shortages by streamlining administrative burdens and enhancing efficiency, enabling providers to focus more time on direct patient care. Physician use of AI nearly doubled from 2023 to 2024, with more than 66% of physicians using AI last year.

Resources & Initiatives

• NIHCM’s recent webinar explored solutions to the primary care crisis, featuring Premera Blue Cross and Kinwell Medical Group’s efforts to expand access through integrated behavioral health and virtual care.
• Independence Blue Cross has expanded its partnership with Carallel to provide enhanced support and guidance to family caregivers.
  
• Health Care Service Corporation member plans have launched several initiatives nationwide to deliver essential care through Care Vans and other mobile clinics, offering care in rural and underserved areas, maternal health services, and vaccinations and screenings.
  
• In addition, Blue Cross and Blue Shield of New Mexico recently invested in programs to address health care workforce shortages and improve physician recruitment and retention, increasing access to care.
  
• In October 2024, the Department of Health and Human Services (HHS) released a report outlining current health care workforce challenges and strategies for addressing them.

Health Industry News

• Health Care Spending: A new KFF analysis breaks down federal support for health programs and services, including both spending and tax subsidies. A February report from the Office of Inspector General found that Medicare Part D spending on 10 diabetes drugs, including GLP-1 medications, increased 364% between 2019 and 2023.

• Cybersecurity Concerns: A recent survey of nearly 200 healthcare executives and cybersecurity professionals found the top five cybersecurity concerns for 2025 are ransomware deployments, third-party breaches, data breaches, supply chain attacks, and zero-day exploits. A new report from Oliver Wyman discusses how mergers, acquisitions, partnerships, and alliances increase vulnerabilities, and how cybersecurity needs to be an integral part of due diligence.

• GLP-1s & Compounded Weight Loss Drugs: In February, The Food and Drug Administration (FDA) removed Novo Nordisk's Wegovy and Ozempic from the drug shortage list and set deadlines to phase out the sale of compounded versions of semaglutide. On March 4th, a federal judge effectively ended the ability of compounding pharmacies to produce their own versions of Eli Lilly’s weight loss and diabetes drugs, Zepbound and Mounjaro, after legal challenges over tirzepatide's removal from the FDA drug shortage list. Eli Lilly had previously announced that it would lower the price of Zepbound vials and offer more doses to compete with the compounded versions of the drug.

• Medical Devices: In 2024, medical device recalls reached the highest level since 2020, with more than 10% being Class I recalls, the most serious type of recall. Recently, the FDA issued another Class I recall of Boston Scientific's Accolade pacemaker.

Health Policy Watch

Rapid policy shifts include possible threats to Medicaid and a new emphasis on transparency and reducing rates of chronic disease.

National

• Expanding Transparency: An executive order directs HHS and the Labor and Treasury departments to quickly enforce and implement the transparency policies created by Trump in 2019, and issue updated guidance within 90 days. The policy requires disclosure of actual in- and out-of-network provider rates, not estimates; and making pricing for services and prescription drugs comparable across hospitals and insurers. Estimates of cost sharing are also required.

• Lowering Rates of Chronic Disease: The Make America Healthy Again Commission, chaired by HHS Secretary Robert F. Kennedy, Jr., was created, via executive order, to address America’s high rates of chronic disease, especially among children, the food system, and other aspects of public health.

• Increasing Access to IVF: Reducing barriers to in vitro fertilization (IVF) by lowering costs is the purpose of the administration’s recent executive order. An IVF cycle can cost $15,000 to $20,000 or more, according to HHS estimates. The order does not clarify how IVF costs would be lowered.

• Terminating Health Equity Group: A Centers for Medicare and Medicaid (CMS) Advisory group, that addressed barriers to care for people experiencing disparities, was disbanded in late February, by executive order. Waivers (CMS funding) supporting housing, nutrition, and services for high-risk Medicaid and Children’s Health Insurance Program enrollees were also rescinded.

• Tariffs Raising Health Care Costs: Health experts warn that the administration's tariffs on goods from Canada, China, and Mexico will raise prices and disrupt the supply chain for a wide range of medical devices and prescription drugs. The devices include anesthesia and surgical instruments, pulse oximeters, specialized feeding syringes, and women’s health products.

• Medicaid Funding at Risk: On February 25th, the House passed a budget resolution calling for $880 billion in spending cuts that may lead to a massive reduction in Medicaid funding for the states. While the administration says Medicaid cuts are not planned, it would be impossible for the House Committee on Energy and Commerce to cut the desired amount without reducing Medicaid funding. More than 80 million people are on Medicaid, including 4 in 10 children, and 1 in 4 adults with disabilities. The potential cuts could lead to rapid reductions in health insurance coverage in states, according to a new report by the Urban Institute.

• Limiting Public Comment: A new policy, issued by Robert F. Kennedy, Jr., will eliminate the option for the public to comment on HHS rulemaking, reversing a practice in place since 1971.

Local

• Iowa: Governor Kim Reynolds introduced a bill to improve rural health care access and increase the health care workforce, with an emphasis on supporting rural hospitals, and advancing maternal and specialty care.

• New Mexico: The state has introduced a bill to require stricter background checks for professional caregivers, including scans for felonies and sex offenses. The NIHCM-supported reporting, in Source NM, highlighted a 117% increase in cases of severe abuse and neglect in people receiving developmental disabilities waivers between 2020 and 2024, and a 76% increase in reports from patients in health care facilities in the state.

• Pennsylvania: Governor Shapiro has announced a $3.6 million investment to improve health care for mothers and infants across the state.

Infectious Disease Update

An update on the spread of infectious diseases in the US.

• Bird Flu: Avian Influenza (bird flu) is circulating in the US and has spread from wild birds into poultry, dairy cattle, and domestic cats. Although the risk is low, the Centers for Disease Control and Prevention (CDC) has reported 70 cases in humans and one death. People with work or recreation related exposures to infected animals are at increased risk of infection. Currently, there are no identified cases of person-to-person spread. A new study shows bird flu has been transmitted from animals to some veterinarians, but they remained asymptomatic. Experts suggest the findings indicate the total number of official cases is an undercount. The U.S. Department of Agriculture (USDA) is trying to rehire recently fired employees who were working on addressing the bird flu outbreak.

• Measles Outbreak: Measles is one of the most contagious diseases and spreads easily when an infected person breathes, coughs, or sneezes. As of March 6, 2025, a total of 222 measles cases were reported nationwide with the largest number of cases occurring in Texas. The majority of cases are related to three outbreaks (defined as three or more cases). An unvaccinated school-age child in Texas has died, marking the first measles death in the United States in a decade, and a second death in New Mexico has occurred. In a recent statement, HHS Secretary Robert F. Kennedy Jr. encouraged parents to consult with their health care providers to understand their options to get their child the measles, mumps, and rubella (MMR) vaccine, but noted that the decision to vaccinate is a personal one.

• Seasonal Flu: Experts at the CDC say flu cases have hit a 15-year high, but the outbreak may have reached its peak. This flu season saw an estimated 19,000 deaths in the United States and filled hospitals with critically ill patients. Preliminary estimates in a new CDC report show the flu vaccine was up to 55% effective at preventing hospitalizations among adults this season.

Resources & Initiatives

• An NPR article answers questions about the measles outbreak and whether adults should consider getting a booster shot.
• Wellmark shares flu shot facts and five reasons to get the flu shot.
• University of Chicago Medicine shares seven things you can do to protect yourself against getting bird flu.
• Cornell College of Veterinary Medicine's dashboard on Highly Pathogenic Avian Influenza (bird flu), includes the latest numbers for animals and human transmission and resources to guide veterinarians and public health professionals.
• The USDA’s Center for Veterinary Biologics issued Zoetis a conditional license for its Avian Influenza Vaccine for use in chickens.
• Horizon Blue Cross Blue Shield of New Jersey shares information on the MMR vaccine in response to the growing outbreak.
• Blue Cross Blue Shield of Michigan provides information on the spread of viruses and flu prevention.