With the emergence of telemedicine and the growing demand for skilled medical professionals, the healthcare sector is undergoing a noticeable transformation. Unlike numerous other industries, the impact of supply chain challenges on healthcare and medical practitioner collectives has been relatively moderate. However, certain areas within healthcare, such as pharmacies and specific surgical specialties, are considerably affected by shipping delays and inventory shortages.
The scarcity of labor has emerged as a widespread concern over the past few years, although the healthcare industry was grappling with this issue long before the onset of the pandemic. Presently, healthcare institutions are encountering significant difficulties in recruiting personnel, particularly well-qualified mid-level providers like physician assistants and nurse practitioners. This shortage increases the vulnerability to medical malpractice lawsuits due to the hiring of inadequately skilled professionals to fill personnel gaps.
Simultaneously, as inflation escalates, the reimbursement for physicians is declining. Both individual practitioners and physician groups are witnessing a reduction in their income as the costs of various commodities rise. The ongoing decrease in reimbursement rates is sending reverberations throughout physician groups, hospitals, and senior care organizations of all sizes. Learn more in our full 2023 Market Report.