3 MIN READ
Published 06/04/2021
The end of the pandemic may be in sight, but in its wake will be some daunting challenges for healthcare providers. Explore more to examine the four risks:
1. Clinician burnout
Even before the pandemic, up to one-half of clinicians were found to experience burnout.¹ What’s the impact on providers?
- Turnover and lost hours total $4.6 billion per year.²
- Professional liability risks and costs rise when workers aren’t at their best.
- Patient satisfaction suffers.
What’s our response?
Emphasize work/life balance and strengthen mental and emotional well-being programs.
2. Talent gap
As the need for care grows larger, the medical workforce grows older. What are the dangers over the next decade?
- One-third of clinicians are 55 or older.4
- Six of today’s 10 fastest-growing occupations are related to healthcare.5
- The talent pipeline is limited as a result of strained work conditions.
- Lower-skilled workers may need to fill the talent gap.
What’s our response?
Focus on employee engagement and long-term recruitment.
3. Telehealth fever
With the number of virtual visits up to 175 times higher now than before the pandemic6, online care has revolutionized the industry. If this shift is permanent, what are the drawbacks?
- Data breaches were approximately three times higher in 2020 than in 2019.7
- A reliance on imperfect remote technology can cause misdiagnoses.
- Revenue decreased more than $20 billion in the pandemic’s first three months.8
- A permanent shift to virtual care could threaten long-term financial viability.
What’s our response?
Consider the added risks of sustained online and remote medical care and how they vary by jurisdiction.
4. Financial instability
America’s hospitals and health systems lost at least $323 billion in 2020.9 How will today’s financial outlook reshape the industry?
- Smaller providers may cut back unprofitable services, slash expenses, limit investments, or close altogether.10
- Larger healthcare systems will likely focus on innovation, diversification, and collaboration.11
- Health systems may strengthen infrastructure through new alliances.12
- Industry analysts expect a dramatic rise in M&A activity in 2021.10
Key considerations:
Assess program structures to ensure they meet financial needs.
As healthcare providers adapt to a changing world, our expertise and integrated solutions can help you prepare for the risks and challenges that lie ahead.
Contact your Liberty Mutual representative to learn how we can help.
- https://www8.nationalacademies.org/onpinews/newsitem.aspx?RecordID=
25521&_ga=2.158196538.1042620189.1571854216-1009726916.1571854216 - https://www.acpjournals.org/doi/10.7326/M18-1422
- https://journals.lww.com/hcmrjournal/Abstract/
2008/01000/Linking_physician_burnout_and_patient_outcomes_.5.aspx - https://www.peoplescout.com/insights/healthcare-talent-generational-divide/
- https://www.bls.gov/news.release/ecopro.nr0.htm
- https://www.mckinsey.com/industries/healthcare-systems-
and-services/our-insights/telehealth-a-quarter-trillion-dollar-post-covid-19-reality# - https://www.healthcaredive.com/news/3-big-predictions-for-digital-health-in-2021/593691/
- https://journals.lww.com/annalsofsurgery/Abstract/
9000/The_Cost_of_Quarantine__Projecting_the_Financial.93739.aspx - https://www.aha.org/issue-brief/2020-06-30-new-aha-report-
finds-losses-deepen-hospitals-and-health-systems-due-covid-19 - https://www.healthcarefinancenews.com/news/ma-activity-expected-
surge-independent-health-systems-look-partners - https://www.bdo.com/BDO/media/CFO-Outlook-Survey/IND_2021_HC_CFO-Survey_WEB.pdf
- https://www.healthcaredive.com/news/healthcare-cfos-see-fresh-wave-of-ma-in-2021-bdo-survey-shows/593219/
Related insights
This website is general in nature, and is provided as a courtesy to you. Information is accurate to the best of Liberty Mutual’s knowledge, but companies and individuals should not rely on it to prevent and mitigate all risks as an explanation of coverage or benefits under an insurance policy. Consult your professional advisor regarding your particular facts and circumstance. By citing external authorities or linking to other websites, Liberty Mutual is not endorsing them.
