U.S. HEALTHCARE REFORM

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1 U.S. HEALTHCARE REFORM It s Impact on the Future Talent & Recruiting Needs of Healthcare Providers September 18,

2 PANEL DISCUSSION FACILITATOR Carl Kutsmode Partner at talentrise Talent Acquisition / Management Consultant with over 18 years experience helping employers gain competitive advantage through talent. Assess current recruiting practices and talent or compliance risks in order to Align future talent and business needs Optimize recruiting systems, processes and strategies to reduce costs and improve efficiencies Recruit the BEST talent to drive business performance - Retained Executive Search - Contract On Demand Recruiting 2

3 PANELISTS Brian Lepacek, MDiv Executive Director, Foundation Little Company of Mary Hospital & H/C Centers Shawn Fitzgerald, MBA, SPHR, PMP, HRIP Director, HR Operations & Recruiting Cadence Health, Winfield Illinois Gerard Nussbaum, JD, MS, CPA, RCDD Director of Technology Services Kurt Salmon Associates Marjorie A. Maurer,MSN,RN,NEA-BC Vice President, Operations/Chief Nurse Executive Advocate Good Samaritan Hospital 3

4 TODAYS DISCUSSION 4

5 THE CHALLENGES US Patient Protection and Affordable Care Act (ACA) passes Supreme Court 6/28/12 - U.S. healthcare providers who have been waiting to see it s fate begin to address the myriad of impacts this will have on the future talent needs of their business Millions of formerly uninsured people are expected to begin to flood the US healthcare system starting in 2013 with full coverage by 2019 Severe nursing, physician, allied health and healthcare IT talent shortages projected through 2020 due to workforce demographics and shortages of academic facilities & programs Electronic records mandate by 2015 creates a surge in competition for a very limited supply of experienced healthcare IT talent 5

6 PROJECTED TALENT SHORTAGES Source (Above): National Center for Health Workforce Analysis Source: CSC.com Source (Left) : WashingtonPost.com and Assoc. of American Medical Colleges 6

7 THE PERFECT STORM As the U.S. population ages, the labor force will grow more slowly during the next decade while the older labor force is projected to grow more than 5 times faster than the overall labor force Bureau of Labor Statistics, Employment Outlook, Average age of nurses is climbing yrs in 2012 ; Over 50% surveyed say they will retire in the next 10 years. 40% of practicing physicians are 55 or older; 1/3 rd surveyed plan to retire in the next ten years. As population ages, demand for healthcare services in the future will increase and fewer people will be trained and in the workforce ready to treat them 7

8 TALENT PLANNING Success of Healthcare Reform Hinges on the System Being Able to Hire 30,000+ More Primary Care Doctors by AARP Q: How will healthcare provider future talent needs OR existing roles change in the future on the heels of healthcare reform being fully implemented? - Existing staff roles that may require different skills or training? - New roles to be created and education of managers and others on how to recruit, develop and retain them? 8

9 TOOLS FOR ASSESSING EXISTING & NEW TALENT FIT Assess Developmental Gaps of Existing Employees Assess Job Fit & Predict Performance of New Hires 9

10 RECRUITMENT & RETENTION Q: What do healthcare business unit managers and HR leaders need to do differently in the future to recruit and retain talent? - How important is it that new hires in the future have the skills needed AND understand the business of healthcare? 10

11 DATA ANALYTICS ARE KEY: TALENT MAPPING TOOLS CAN HELP YOU MAKE INFORMED DECISIONS Gain insight into WHO IS HIRING and HOW MANY PEOPLE could potentially fill the open positions Use The Hiring Scale to assess wherethe jobs are and how difficult it will be to RECRUIT for an open job OR to FIND a job Gain insight into COMPENSATION TRENDS by market compared to the national average 11

12 INVESTMENT IN ADVANCED DEGREES? Q: Which advanced degrees (or specialized skills training) are going to be in HIGHEST DEMAND OR have the GREATEST IMPACT on the business of H/C in the future? 12

13 HEALTHCARE EMPLOYMENT PROJECTIONS BLS projects that, between 2008 and 2018, the biggest increases in job growth will occur in the following professions (Figure 3): Registered nurses 581,500 new jobs; growth rate of 22.2% LPN and licensed vocational nurses 155,600 new jobs ; growth rate of 20.7% Home health aides 460,900 new jobs; growth rate of 50% Nursing aides, orderlies, and attendants 276,000 new jobs ; growth rate of 18.8% Personal and home care aides 375,800 new jobs ; growth rate of 46 % Physicians and surgeons 144,100 new jobs ; growth rate of 21.8% 13

14 REALITY CHECK: HEALTHCARE REFORM BENEFITS USE TO DATE 54,000,000 - Now have FREE coverage for preventative care to screen for cancer, diabetes and other life threatening illnesses that previously required a deductible or co-payment required by insurers 32,500,000 - People on Medicare have used FREE preventative wellness services since the deductible for preventative screenings was removed for Seniors in ,600,000 - Seniors have already saved $2.1 Billion on their prescription drugs which they now can receive 50% discounts on brand name drugs. 2,500,000 - Young adults are now covered by their parents health insurance plan up to age 26 - many who are unemployed after age 18 could not qualify for coverage until they were employed. 50,000 - People with uninsured conditions have gained coverage previously excluded by health insurers. Source: 14

15 THE BUSINESS CASE TO ACT NOW! An Estimated 32 Million more Americans will have health insurance by 2019 than would have had it without healthcare reform - The Congressional Budget Office There is a projected shortage of 91,500 Patient Care Physicians by 2020, increasing to 130,600 by 2025 based upon the demographics trends of academic physician training capacity and student enrollments - Association of American medical Colleges 15

16 INVESTMENT IN ADVANCED DEGREES? Q: Any last words of advice for our audience of Loyola students and alumni? 16

17 QUESTIONS? OR NEED HELP WITH YOUR KEY INITIATIVES? Carl Kutsmode, Managing Partner Ph Our Services Assess current recruiting practices and talent or compliance risks in order to Align future talent and business needs Optimize recruiting systems, processes and strategies to reduce costs and improve efficiencies Recruit the BEST talent to drive business performance - Retained Executive Search - Contract On Demand Recruiting 17

18 REFERENCE SOURCES Nursing shortage facts American Assn of Colleges of Nursing Healthcare worker shortage projections Washington Post Healthcare electronic records mandate MedicalRecords.com Nursing Demographics - US Government BLS Occupational Outlook AARP Fact Sheet on Provider Shortages AARP.org Healthcare Reform Implementation Timeline APTA.org Healthcare Reform Facts Whitehouse.gov/healthreform Healthcare Reform in Action Whitehouse.gov/healthreform The state of talent management in healthcare - Medicaid Coverage of Uninsureds under Health Reform Kaiser Foundation Study National Center for Health Workforce Analysis & Reporting The New Healthcare Workforce Talent Mgmt Trends Deloitte US Healthcare caregiver shortages - At a Crossroad State of insurance coverage in Illinois report Illinois Health Information Exchange Strategic and Operational Plan - Illinois.gov 18

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