With nearly 10,000 open positions, Minnesota
hospital and health system financials are down significantly
24, 2022, Saint Paul, Minn.– The Minnesota Hospital Association (MHA) released
new data today that highlight plunging hospital and health system financials
that are being exacerbated by the spiking health care staffing crisis. With an
almost 250% one-year increase in job vacancy rates, a 172% decline in year over
year financials for acute care hospitals, exponentially rising labor and supply
costs, and the need to rely on temporary staffing, there is an intense strain
on the state’s hospitals and health systems.
“Our hospitals and health systems are committed to being
there when Minnesotans need them, and they need help as the perfect storm - the
financial effects of the pandemic and the workforce shortage - worsens with
every passing day,” said Dr. Rahul Koranne, MHA president and CEO.
data represented in the 2022 MHA Workforce Report is based on a statewide analysis of MHA
members, which includes Minnesota’s large health systems and small rural
hospitals. Data shows:
- The overall vacancy
rate in 2022 is about 21%, compared to only about 6% in 2021.
- More professionals
within health care are opting for a part-time work schedule, making it more
difficult for hospitals and health systems to meet operational needs. For the
first time, more than half (57%) of registered nurses (RNs) are not working
44% of all hospital employees are less than full-time, up from 37% in 2016.
trend is higher among select professional groups, including:
of nursing station technicians
of certified nursing assistants
professionals are more likely to opt for part-time job status versus their more
- The operations and
finances of Minnesota’s hospital and health systems are being additionally
strained by retirements.
are projected to be the top occupational group at or above retirement age
within ten years, followed by licensed practical nurses (27%), and
peri-anesthesia RNs (25.1%).
is on trend nationally. The Association of American Medical Colleges (AAMC) reports that more than two of
every five active physicians in the U.S. will be 65 or older within the next
- Minnesota’s hospitals and
health systems have increased the number of black, indigenous, and people of
color (BIPOC) new hire representation by nearly 140% since 2016, striving
towards a workforce that better reflects the communities we serve.
workforce crisis is compounding an already dire financial situation. In
mid-2022, a MHA analysis of acute
care hospitals in the state found that the median hospital and health system
operating margin for the first and second quarter of 2022 was -1.5% versus 2.2%
in 2021, a 172% drop year over year. This is estimated to be more than $200
million in losses.
“We must secure
immediate support and form innovative partnerships to recruit, retain, train,
and engage a strong workforce that will be able to care for Minnesota’s future
generations,” said Koranne. “As we
continue to see our nonprofit hospitals and health systems - the 24/7/365 epicenters of
health in our communities - in increasing distress, the time has come for our
lawmakers to intervene before matters get even worse.”
- Legislative partnership
in rethinking government reimbursements. Medicare reimburses hospitals at 20%
below cost on average, and Medicaid at 27% below cost, creating a financial
model where the math just does not add up.
forgiveness and scholarships for students in all areas of health care,
including allied health professionals.
investment to build the health care workforce pipeline, including programs for
career laddering and exposing students to health care careers at an earlier
entry into the professional workforce through simplification of the
administrative processes at the health care licensing boards.
Rebuilding the health care workforce remains a primary area of focus
for MHA. MHA will continue to assist its members in addressing this critical
challenge through service, advocacy, and data-led improvement.
the full 2022 MHA Health Care Workforce Report here.
the Data: MHA member hospitals and health systems
are asked to submit data annually on age, gender, race, and ethnicity for 40
direct patient care jobs in their hospitals, clinics, laboratories, emergency
response settings, and outpatient services. The data in this report reflects
workers employed through Dec. 31, 2021. The report represents a synopsis of
health care workforce data collected by MHA to illustrate benchmarks and trends
hospitals and health systems utilize to perform strategic workforce analysis
and make decisions on how to support health care staff.
Margin: A positive operating margin is necessary to ensure a robust statewide
system of care continues to serve patients, continue as the community's
lifeline, and attract and retain a skilled workforce.
Minnesota Hospital Association (MHA) represents Minnesota’s hospitals and
health systems, which employ more than 127,000 people, provide high-quality
care for patients, and meet the needs of communities. Since 1917, MHA has
worked to provide Minnesota’s hospitals and health systems with the resources,
best practices, and guidance to provide an exceptional patient experience and
high-quality, affordable care that extends beyond the hospital’s walls.