|
Subcommittee on Health
August 1, 2001
10:00 AM
2322 Rayburn House Office Building
Mr.
Chairman and Members of the Subcommittee:
We
are pleased to be here today as you discuss issues related to the health care
workforce and the reauthorization of federal safety net programs to improve
access to care for medically underserved populations.
As you know, there is growing concern that many Americans will go without
needed health care services because worker shortages or geographic
maldistribution of certain types of health care professionals may develop.
Changes
in the U.S. health care system over the past two decades have affected the
environment in which a variety of health professionals and paraprofessionals
provide care. For example, while hospitals traditionally were the primary
providers of acute care, advances in technology, along with cost controls, have
shifted much care from traditional inpatient settings to ambulatory or
community-based settings, nursing facilities, and home health care settings.
In addition, the transfer of less acute patients to nursing homes and
community-based-care settings created a broader range of health care employment
opportunities. These changes have
led to concerns regarding the adequacy of the health care workforce.
And while the adequacy of the health care workforce is an important issue
nationwide, the distribution of available health professionals is a particularly
acute issue in certain locations. These
medically underserved areas, ranging from isolated rural areas to inner cities,
have problems attracting and retaining health care professionals.
My
testimony will discuss (1) growing concerns about the adequacy of the health
care workforce and emerging shortages in some fields, particularly among nurses
and nurse aides, and (2) the lessons learned from the experience of one federal
program-the Department of Health and Human Services' (HHS) National Health
Service Corps (NHSC)-in addressing the maldistribution of health care
professionals. My comments are
based on our previous work in these areas and limited follow-up work we
conducted to update the findings and recommendations contained in earlier
reports.
In
brief, while current data on supply and demand for many categories of health
workers are limited, available evidence suggests emerging shortages in some
fields, for example, among nurses and nurse aides.
Many providers are reporting rising vacancy and turnover rates for these
workers, contributing to growing concerns about recruiting and retaining
qualified health professionals. These
concerns are likely to increase in the future as demographic pressures
associated with an aging population are expected to both increase demand for
health services and limit the pool of available workers such as nurses and nurse
aides.
Regarding
the experience of the NHSC, while the program has placed thousands of health
professionals in needy communities since its establishment in 1970, our work has
identified several areas for HHS and the Congress to consider in discussing NHSC
reauthorization. For example, we found problems with HHS' system for identifying
and measuring the need for NHSC providers.
In addition, the NHSC placement process is not well coordinated with
other efforts to place physicians in underserved areas and does not assist as
many needy areas as possible. Finally,
regarding the financing mechanism used to attract health care professionals to
the NHSC, our analysis found that educational loan repayment is preferable over
scholarships in most situations.
HEALTH
WORKFORCE ISSUES
ARE
A GROWING CONCERN
Recruitment
and retention of adequate numbers of qualified workers are major concerns for
many health care providers today. While current data on supply and demand for
many categories of health workers are limited, available evidence suggests
emerging shortages in some fields, for example, among nurses and nurse aides.
Many providers are reporting rising vacancy and turnover rates for these worker
categories. In addition, difficult
working conditions and dissatisfaction with wages have contributed to rising
levels of dissatisfaction among many nurses and nurse aides. These concerns are
likely to increase in the future as demographic pressures associated with an
aging population are expected to both increase demand for health services and
limit the pool of available workers such as nurses and nurse aides.
As the baby boom generation ages, the population of persons age 65 and
older is expected to double between 2000 and 2030, while the number of women age
25 to 54, who have traditionally formed the core of the nursing workforce, will
remain virtually unchanged. As a result, the nation may face a caregiver
shortage of different dimensions from those of the past.
Evidence
Suggests Emerging Health Worker Shortages in Some Fields
Nurses
and nurse aides are by far the two largest categories of health care workers,
followed by physicians and pharmacists.
While current workforce data are not adequate to determine the magnitude of any
imbalance between supply and demand with any degree of precision, evidence
suggests emerging shortages of nurses and nurse aides to fill vacant positions
in hospitals, nursing homes, and other health care settings.
Hospitals and other providers throughout the country have reported
increasing difficulty in recruiting health care workers, with national vacancy
rates in hospitals as high as 21 percent for pharmacists in 2001. Rising
turnover rates in some fields such as nursing and pharmacy are another challenge
facing providers and are suggestive of growing dissatisfaction with wages,
working environments, or both.
Data
on Health Workforce Supply and Demand Are Limited
There
is no consensus on the optimal number and ratio of health professionals
necessary to meet the population's health care needs.
Both demand and supply of health workers are influenced by many factors.
For example, with respect to registered nurses (RN), demand not only
depends on the care needs of the population, but also on how
providers-hospitals, nursing homes, clinics, and others-decide to use nurses
in delivering care. Providers have
changed staffing patterns in the past, employing fewer or more nurses relative
to other workers at various times. National
data are not adequate to describe the nature and extent of nurse workforce
shortages nor are data sufficiently sensitive or current to allow a comparison
of the adequacy of nurse workforce size across states, specialties, or provider
types.
With
respect to pharmacists, there are also limited data available for assessing the
adequacy of supply, a situation that has led to contradictory claims of a
surplus of pharmacists a few years ago and a shortage at the present time.
While several factors point to growing demand for pharmacy services such
as the increasing number of prescriptions being filled, a greater number of
pharmacy sites, and longer hours of operation, these pressures may be moderated
by expanding access to alternative dispensing models such as Internet and
mail-order delivery services.
Providers
Report High Vacancy Rates for Many Health Care Workers
Recent
studies suggest that hospitals and other health care providers in many areas of
the country are experiencing increasing difficulty recruiting health care
workers.
A recent 2001 national survey by the American Hospital Association reported an
11 percent vacancy rate for RNs, 18 percent for radiology technicians, and 21
percent for pharmacists.
Half of all hospitals reported more difficulty in recruiting pharmacists
than in the previous year, and three-quarters reported greater difficulty in
recruiting RNs. Urban hospitals
reported slightly more difficulty in recruiting RNs than rural hospitals. However, rural hospitals reported higher vacancy rates for
several other types of employees. Rural
hospitals reported a 29 percent vacancy rate for pharmacists and 21 percent for
radiology technologists compared to 15 percent and 16 percent respectively among
urban hospitals.
A
recent survey in Maryland conducted by the Association of Maryland Hospitals and
Health Systems reported a statewide average RN vacancy rate for hospitals of
14.7 percent in 2000, up from 3.3 percent in 1997.
The Association reported that the last time vacancy rates were at this level was
during the late 1980s, during the last reported nurse shortage. Also in 2000,
Maryland hospitals reported a 12.4 percent vacancy rate for pharmacists, a 13.6
percent rate for laboratory technicians, and 21.0 percent for nuclear medicine
technologists. These same hospitals
reported taking 60 days to fill a vacant RN position in 2000 and 54 days to fill
a pharmacy vacancy in 1999.
Several
recent analyses illustrate concerns over the supply of nurse aides. In a 2000
study of the nurse aide workforce in Pennsylvania, staff shortages were reported
by three-fourths of nursing homes and more than half of all home health care
agencies.
Over half (53 percent) of private nursing homes and 46 percent of
certified home health care agencies reported staff vacancy rates higher than 10
percent. Nineteen percent of nursing homes and 25 percent of home health care
agencies reported vacancy rates exceeding 20 percent. A recent survey of
providers in Vermont found high vacancy rates for nurse aides, particularly in
hospitals and nursing homes; as of June 2000, the vacancy rate for nurse aides
in nursing homes was 16 percent, in hospitals 15 percent, and in home health
care 8 percent. In a recent survey of states, officials from 42 of the 48 states
responding reported that nurse aide recruitment and retention were currently
major workforce issues in their states.
More than two-thirds of these states (30 of 42) reported that they were
actively engaged in efforts to address these issues.
High
Rates of Turnover Experienced in Some Fields
Rising
turnover rates in many fields are another challenge facing providers and suggest
growing dissatisfaction with wages, working environments, or both.
According to a recent national hospital survey, rising rates of turnover
have been experienced, particularly in nursing and pharmacy departments.
Turnover among nursing staff rose from 11.7 percent in 1998 to 26.2
percent in 2000. Among pharmacy
staff, turnover rose from 14.6 percent to 21.3 percent over the same period.
Nursing home and home health care industry surveys indicate that nurse
turnover is an issue for them as well. In 1997, an American Health Care
Association (AHCA) survey of 13 nursing home chains identified a 51-percent
turnover rate for RNs and licensed practical nurses (LPN). A 2000 national survey of home health
care agencies reported a 21-percent turnover rate for RNs.
Many
providers also are reporting problems with retention of nurse aide staff. Annual
turnover rates among aides working in nursing homes are reported to be from
about 40 percent to more than 100 percent. In 1998, a survey sponsored by AHCA of 12 nursing home chains
found 94-percent turnover among nurse aides.
A more recent national study of home health care agencies identified a 28
percent turnover rate among aides in 2000, up from 19 percent in 1994.
High
rates of turnover may lead to higher provider costs and quality of care
problems. Direct provider costs of turnover include recruitment, selection, and
training of new staff, overtime, and use of temporary agency staff to fill gaps.
Indirect costs associated with turnover include an initial
reduction in the efficiency of new staff and a decrease in nurse aide morale and
group productivity. In
nursing homes, for example, high turnover can disrupt the continuity of patient
care-that is, aides may lack experience and knowledge of individual residents
or clients. When turnover leads to
staff shortages, nursing home residents may suffer harm because there remain
fewer staff to care for the same number of residents.
Working
Conditions and Wages Contribute to Job Dissatisfaction Among Nurses and Nurse
Aides
Job
dissatisfaction has been identified as a major factor contributing to the
current problems providers report in recruiting and retaining nurses and nurse
aides. Among nurses, inadequate staffing, heavy workloads, and the increased use
of overtime are frequently cited as key areas of job dissatisfaction. A recent
Federation of Nurses and Health Professionals (FNHP) survey found that half of
the currently employed RNs surveyed had considered leaving the patient-care
field for reasons other than retirement over the past 2 years; of those who
considered leaving, 18 percent wanted higher wages, but 56 percent wanted a less
stressful and less physically demanding job.
Other surveys indicate that while increased wages might encourage nurses
to stay at their jobs, money is not generally cited as the primary reason for
job dissatisfaction. The FNHP survey found that 55 percent of currently employed
RNs were either just somewhat or not satisfied with their facility's staffing
levels, while 43 percent indicated that increased staffing would do the most to
improve their jobs.
For
nurse aides, low wages, few benefits, and difficult working conditions are
linked to high turnover. Our analysis of national wage and employment data from
the Bureau of Labor Statistics (BLS) indicates that, on average, nurse aides
receive lower wages and have fewer benefits than workers generally. In 1999, the
national average hourly wage for aides working in nursing homes was $8.29,
compared to $9.22 for service workers and $15.29 for all workers.
For aides working in home health care agencies, the average hourly wage
was $8.67, and for aides working in hospitals, $8.94. Aides working in nursing
homes and home health care are more than twice as likely as other workers to be
receiving food stamps and Medicaid benefits, and they are much more likely to
lack health insurance. One-fourth
of aides in nursing homes and one-third of aides in home health care are
uninsured compared to 16 percent of all workers.
In addition, other studies have found that the physical demands of nurse
aide work and other aspects of the environment contribute to retention problems.
Nurse aide jobs are physically demanding, often requiring moving patients
in and out of bed, long hours of standing and walking, and dealing with patients
or residents who may be disoriented or uncooperative.
Demand
for Most Health Workers Will Continue to Grow While Demographic Pressures May
Limit Supply
Concern
about emerging shortages may increase as the demand for health care services is
expected to grow dramatically with the continued aging of the population. In
most job categories, health care employment is expected to grow much faster than
overall employment, which BLS projects will increase by 14.4 percent from 1998
to 2008. As shown in Table 1, total
employment for personal and home care aides is expected to grow by 58 percent,
with 567,000 new workers needed to meet the increased demand and replace those
who leave the field. Employment of
physical therapists is expected to grow by 34 percent, and employment of RNs is
projected to grow by almost 22 percent, with 794,000 new RNs expected to be
needed by 2008.
Table 1:
Projected Employment Growth for Selected Occupations, 1998-2008
|
Occupation
|
1998
employment
(in
thousands)
|
Percent
growth in employment1998-2008
|
Total
projected job openings, 1998-2008
(in
thousands)a
|
| All
occupations |
140,514
|
14.4
|
54,622
|
| Physicians |
577
|
21.2
|
212
|
| Dentists |
160
|
3.1
|
38
|
| Registered
nurses |
2,079
|
21.7
|
794
|
| Pharmacists |
185
|
7.3
|
64
|
| Physical
therapists |
120
|
34.0
|
59
|
| Clinical
laboratory technicians
and technologists
|
313
|
17.0
|
93
|
| Radiology
technicians and
technologists
|
162
|
20.1
|
55
|
| Nurse
aides, orderlies and
attendants
|
1,367
|
23.8
|
515
|
| Personal
and home health aides |
746
|
58.1
|
567
|
a
Total projected openings are due to both growth in demand and net replacements.
Source: U.S. Department of Labor, Bureau of
Labor Statistics, "Occupational Employment Projections to 2008," Monthly Labor Review,
November 1999.
Demographic
pressures will continue to exert significant pressure on both the supply and
demand for nurses and nurse aides. A more serious shortage of nurses and nurse
aides is expected in the future, as pressures are exerted on both supply and
demand. The future demand for these workers is expected to increase dramatically
when the baby boomers reach their 60s, 70s, and beyond. Between 2000 and 2030,
the population age 65 years and older will double from 2000 to 2030. During that
same period the number of women age 25 and 54, who have traditionally formed the
core of the nurse and nurse aide workforce, is expected to remain relatively
unchanged. Unless more young people
choose to go into the nursing profession, the workforce will continue to age. By
2010, approximately 40 percent of nurses will likely be older than 50 years. By
2020, the total number of full time equivalent RNs is projected to have fallen
20 percent below HRSA's projections of the number of RNs that will be required
to meet demand at that time.
NHSC
ILLUSTRATES CHALLENGES IN ADDRESSING SHORTAGES OF HEALTH PROFESSIONALS IN
CERTAIN LOCATIONS
In
addition to concerns about the overall supply of health care professionals, the
distribution of available providers is an ongoing public health concern.
Many Americans live in areas--including isolated rural areas or inner
city neighborhoods--that lack a sufficient number of health care providers.
The National Health Service Corps (NHSC) is one safety-net program that
directly places primary care physicians and other health professionals in these
medically needy areas. The NHSC
offers scholarships and educational
loan repayments for health care professionals who, in turn, agree to serve in
communities that have a shortage of them. Since
its establishment in 1970, the NHSC has placed thousands of physicians, nurse
practitioners, dentists, and other health care providers in communities that
report chronic shortages of health professionals.
At the end of fiscal year 2000, the NHSC had 2,376 providers serving in
shortage areas. Since the NHSC was
last reauthorized in 1990, funding for its scholarship and loan repayment
programs has increased nearly 8-fold, from about $11 million in 1990 to around
$84 million in 2001.
Some
have proposed expanding the NHSC or developing similar programs to include
additional health care disciplines, such as nurses, pharmacists, and medical
laboratory personnel. In
considering such possibilities, HHS and the Congress may want to consider our
work that has identified several ways in which the NHSC could be improved.
These include how the NHSC identifies the need for providers and how it
measures that need, how the NHSC placements are coordinated with other programs
and with its own placements, and which financing mechanism--scholarships or loan
repayments--is a better approach to attract providers to those areas.
Current
System for Identifying Need is Inadequate
Over
the past 6 years, we have identified numerous problems with the way HHS decides
whether an area is a health professional shortage area (HPSA), a designation
required for a NHSC placement.
In addition to identifying problems with the timeliness and quality of
the data used, we found that HHS' current approach does not count some
providers already working in the shortage area.
For example, it does not count nonphysicians providing primary care, such
as nurse practitioners, and it does not count NHSC providers already practicing
there. As a result, the current
HPSA system tends to overstate the need for more providers, leading us to
question the system's ability to assist HHS in identifying the universe of
need and in prioritizing areas.
Recognizing
the flaws in the current system, HHS has been working on ways to improve the
designation of HPSAs, but the problems have not yet been resolved.
After studying the changes needed to improve the HPSA system for nearly a
decade, HHS published a proposed rule in the Federal
Register in September 1998. The
proposed rule generated a large volume of comments and a high level of concern
about its potential impact. In June
1999, HHS announced that it would conduct further analyses before proceeding.
HHS continues to work on a revised shortage area designation methodology;
however, as of July 2001, it did not have a firm date for publishing the
proposed new regulations.
The
controversy surrounding proposed modifications to the HPSA designation system
may be due, in large part, to its use by other programs.
Originally, it was only used to identify an area as one that could
request a provider from the NHSC. Today
many federal and state programs--including efforts unaffiliated with HHS--use
the HPSA designation in considering program eligibility. These areas want to get
and retain the HPSA designation in order to be eligible for such other programs
as the Rural Health Clinic program or a 10 percent bonus on Medicare payments
for physicians and other providers.
Better
Coordination of Placements With Waivers for J-1 Visa Physicians Is Needed
The
NHSC needs to coordinate its placements with other efforts to attract physicians
to needy areas. There are not
enough providers to fill all of the vacancies approved for NHSC providers.
As a result, underserved communities are frequently turning to another
method of obtaining physicians-attracting non-U.S. citizens who have just
completed their graduate medical education in the United States.
These physicians generally enter the United States under an exchange
visitor program, and their visas, called J-1 visas, require them to leave the
country when their medical training is done.
However, the requirement to leave can be waived if a federal agency or
state requests it. A waiver is usually accompanied by a requirement that the
physician practice for a specified period in an underserved area.
In fiscal year 1999, nearly 40 states requested such waivers.
They are joined by several federal agencies-particularly the Department
of Agriculture, which wants physicians to practice in rural areas, and the
Appalachian Regional Commission, which wants to fill physician needs in
Appalachia.
Waiver
placements have become so numerous that they have outnumbered the placements of
NHSC physicians. In September 1999,
over 2,000 physicians had waivers and were practicing in or contracted to
practice in underserved areas, compared with 1,356 NHSC physicians.
In 1999, the number of waiver physicians was large enough to satisfy over
one-fourth of the physicians needed to eliminate HPSA designations nationwide.
Our follow-up work in 2001 with the federal agencies requesting the
waivers and 10 states indicates that these waivers are still frequently used to
attract physicians to underserved areas.
Although
coordinating NHSC placements and waiver placements has the obvious advantage of
addressing the needs of as many underserved locations as possible, this
coordination has not occurred. In
fact, this sizeable domestic placement effort--using waiver physicians to
address medical underservice--is rudderless.
Even among those states and agencies using the waiver approach, no
federal agency has responsibility for ensuring that placement efforts are
coordinated. The
Administration has recently stated that HHS will enhance coordination between
the NHSC and the use of waiver physicians; however HHS does not have a system to
take waiver physician placements into account in determining where to put NHSC
physicians. While some informal
coordination may occur, it remains a fragmented effort with no overall program
accountability. As a result, some areas have ended up with more than enough
physicians to remove their shortage designations, while needs in other areas
have gone unfilled.
As
the Congress considers reauthorizing the NHSC, it also has the opportunity to
address these issues. We believe
that the prospects for coordination would be enhanced through congressional
direction in two areas. The first
is whether waivers should be included as part of an overall federal strategy for
addressing underservice. This
should include determining the size of the waiver program and establishing how
it should be coordinated with other federal programs. The second--applicable if the Congress decides that waivers
should be a part of the federal strategy--is designating leadership
responsibility for managing the use of waivers as a distinct program.
Better
Placement Process is Needed
While
congressional action could foster a coordinated federal strategy for placement
of J-1 waiver physicians, our work has also shown that congressional action
could help ensure that NHSC providers assist as many needy areas as possible.
We previously reported that at least 22 percent of shortage areas
receiving NHSC providers in 1993 received more NHSC providers than needed to
lift their provider-to-population ratio to the point at which their HPSA
designation could be removed, while 65 percent of shortage areas with NHSC-approved
vacancies did not receive any providers at all.
Of these latter locations, 143 had unsuccessfully requested a NHSC
provider for 3 years or more.
In response to our recommendations, the NHSC has subsequently made improvements
in its procedures and has substantially cut the number of HPSAs not receiving
providers. However, these procedures still allow some HPSAs to receive more than
enough providers to remove their shortage designation while others go without.
NHSC
officials have said that in making placements, they need to weigh not only
assisting as many shortage areas as possible, but also factors--such as referral
networks, office space, and salary and benefit packages--that can affect the
chance that a provider might stay beyond the period of obligated service.
Since the practice sites on the NHSC vacancy list had to meet NHSC
requirements, including requirements for referral networks and salary and
benefits packages, such factors should not be an issue for those practice
locations. And while we agree that
retention is a laudable goal, the impact of the NHSC's current practice is
unknown, since the NHSC does not routinely track how long NHSC providers are
retained at their sites after completing their service obligations.
The Congress may want to consider clarifying the extent to which the
program should try to meet the minimum needs of as many shortage areas as
possible, and the extent to which additional placements should be allowed in an
effort to encourage provider retention.
Loan
Repayment Is a Better Approach than Scholarships
Another
issue that is fundamental to attracting health care professionals to the NHSC is
the allocation of funds between scholarships and educational loan repayments.
Under the NHSC scholarship program, students are recruited before or
during their health professions training-generally several years before they
begin their service obligation. By
contrast, under the NHSC loan repayment program, providers are recruited at the
time or after they complete their training.
The scholarship program provides a set amount of aid per year while in
school, while the loan repayment program repays a set amount of student debt for
each year of service provided. Under
the Public Health Service Act, at least 40 percent of the available funding must
be for scholarships.
We
looked at which financing mechanism works better and found that, for several
reasons, the loan repayment program is the better approach in most situations.
·
The loan repayment program costs less.
On average, each year of service by a physician under the scholarship
program costs the federal government over $43,000 compared with less than
$25,000 under loan repayment.
A major reason for the difference is the time value of money.
Because 7 or more years can elapse between the time that a physician
receives a scholarship and the time that the physician begins to practice in an
underserved area, the federal government is making an investment for a
commitment for service in the future. In
the loan repayment program, however, the federal government does not pay until
after the service has begun. The
difference in average cost per year of service could increase in the future as a
result of a recent change in tax law.
·
Loan repayment recipients are more likely to complete their
service obligations. This is not surprising when one considers that scholarship
recipients enter into their contracts up to 7 or more years before beginning
their service obligation, during which time their professional interests and
personal circumstances may change. Twelve
percent of scholarship recipients between 1980 and 1999 breached their contract
to serve, compared to about 3 percent of loan
repayment recipients since that program began.
·
Loan repayment recipients are more likely to continue
practicing in the underserved community after completing their obligation.
How long providers remain at their sites after fulfilling their
obligation is not fully clear, because the NHSC does not have a long-term
tracking system in place. However,
we analyzed data for calendar years 1991 through 1993 and found that 48 percent
of loan repayment recipients were still at the same site 1 year after fulfilling
their obligation, compared to 27 percent for scholarship recipients. Again, this is not surprising.
Because loan repayment recipients do not commit to service until after
they have completed training, they are more likely to know what they want to do
and where they want to live or practice at the time they make the commitment.
These
reasons support applying a higher percentage of NHSC funding to loan repayment.
The Congress may want to consider eliminating the current requirement
that scholarships receive at least 40 percent of the funding.
Besides being generally more cost-effective, the loan repayment program
allows the NHSC to respond more quickly to changing needs.
If demand suddenly increases for a certain type of health professional,
the NHSC can recruit graduates right away through loan repayments.
By contrast, giving a scholarship means waiting for years for the person
to graduate.
This
is not to say that scholarships should be eliminated.
One reason to keep them is that they can potentially do a better job of
putting people in sites with the greatest need because scholarship recipients
have less latitude in where they can fulfill their service obligation.
However, our work indicates that this advantage has not been realized in
practice. For NHSC providers
beginning practice in 1993-1994, we found no significant difference between
scholarship and loan payment recipients in the priority that NHSC assigned to
their service locations. This
suggests that the scholarship program should be tightened so that it focuses on
those areas with critical needs that cannot be met through loan repayment.
In this regard, the Congress may want to consider reducing the number of
sites that scholarship recipients can choose from, so that the focus of
scholarships is clearly on the neediest sites.
While placing greater restrictions on service locations could potentially
reduce interest in the scholarship program, the program currently has more than
six applicants for every scholarship--suggesting that the interest level is high
enough to allow for some tightening in the program's conditions.
If that approach should fail, additional incentives to get providers to
the neediest areas might need to be explored.
CONCLUDING
OBSERVATIONS
Providers'
current difficulty recruiting and retaining health care professionals such as
nurses and others could worsen as demand for these workers increases in the
future. Current high levels of job
dissatisfaction among nurses and nurse aides may also play a crucial role in
determining the extent of current and future nursing shortages. Efforts
undertaken to improve the workplace environment may both reduce the likelihood
of nurses and nurse aides leaving the field and encourage more young people to
enter the nursing profession. Nonetheless,
demographic forces will continue to widen the gap between the number of people
needing care and the nursing staff available to provide care.
As a result, the nation will face a caregiver shortage of different
dimensions from shortages of the past. More detailed data are needed, however,
to delineate the extent and nature of nurse and nurse aide shortages to assist
in planning and targeting corrective efforts.
Regarding
the NHSC, addressing needed program improvements would be beneficial.
In particular, better coordination of NHSC placements with waivers for
J-1 visa physicians could help more needy areas.
In addition, addressing shortfalls in HHS systems for identifying
underservice is long overdue. We
believe HHS needs to gather more consistent and reliable information on the
changing needs for services in underserved communities.
Until then, determining whether federal resources are appropriately
targeted to communities of greatest need and measuring their impact of these
reasons will remain problematic.
-
- - - -
Mr.
Chairman, this concludes my prepared statement.
I would be pleased to respond to any questions you or members of the
Subcommittee may have.
GAO
CONTACTS AND ACKNOWLEDGEMENTS
For
further information regarding this testimony, please call Janet Heinrich,
Director, Health Care--Public Health Issues, at (202) 512-7119 or Frank Pasquier,
Assistant Director, Health Care, at (206) 287-4861. Other individuals who made key contributions to this
testimony include Eric Anderson and Kim Yamane.
Appendix I
Related
GAO Reports
Nursing
Workforce: Emerging Nurse Shortages Due to Multiple Factors (GAO-01-944,
July 10, 2001)
Nursing
Workforce: Multiple Factors Create Nurse Recruitment and Retention Problems
(GAO-01-912T, June 27, 2001)
Nursing
Workforce: Recruitment and Retention of Nurses and Nurse Aides Is a Growing
Concern (GAO-01-750T, May 17,
2001)
Health
Care Access: Programs for Underserved Populations Could Be Improved
(GAO/T-HEHS-00-81, Mar. 23, 2000)
Community
Health Centers: Adapting to Changing Health Care Environment Key to Continued
Success (GAO/HEHS-00-39, Mar. 10,
2000)
Physician
Shortage Areas: Medicare Incentive Payments Not an Effective Approach to Improve
Access (GAO/HEHS-99-36, Feb. 26,
1999)
Health
Care Access: Opportunities to Target Programs and Improve Accountability
(GAO/T-HEHS-97-204, Sept. 11, 1997)
Foreign
Physicians: Exchange Visitor Program Becoming Major Route to Practicing in U.S.
Underserved Areas (GAO/HEHS-97-26,
Dec. 30, 1996)
National
Health Service Corps: Opportunities to Stretch Scarce Dollars and Improve
Provider Placement
(GAO/HEHS-96-28, Nov. 24, 1995)
Health
Care Shortage Areas: Designations Not a Useful Tool for Directing Resources to
the Underserved (GAO/HEHS-95-200,
Sept. 8, 1995)
(290108)
See
appendix I for a list of these reports.
In
1999, there were approximately 2.2 million nurse aides, 2.2 million
registered nurses, 688,000 licensed practical or vocational nurses, 313,000
physicians, and 226,000 pharmacists employed in the United States according
to the Bureau of Labor Statistics.
Caution
must be used when comparing vacancy rates from different studies. While
nurse vacancy rates are typically the number of budgeted full-time RN
positions that are unfilled divided by the total number of budgeted
full-time RN positions, not all studies identify the method used to
calculate rates.
American Hospital Association, The
Hospital Workforce Shortage: Immediate and Future, (Washington,
D.C.: AHA, 2001).
Association of Maryland Hospitals & Health Systems, MHA
Hospital Personnel Survey 2000, (Elkridge, MD: MHA, 2001).
Joel
Leon, Jonas Marainen, and John Marcotte, Pennsylvania's
Frontline Workers in Long Term Care (Jenkintown, Pa.: Polisher
Research Institute at the Philadelphia Geriatric Center, 2001).
North
Carolina Division of Facility Services, Comparing
State Efforts to Address the Recruitment and Retention of Nurse Aide and
Other Paraprofessional Aide Workers (Raleigh, N.C.: Sept. 1999).
Hospital
& Healthcare Compensation Service, Hospital
Salary and Benefits Report 2000-2001 (Oakland,
N.J.:
Hospital & Healthcare Compensation Service, 2000).
As
with vacancy rates, caution should be used when comparing turnover rates
from different studies. Nurse turnover rates are typically the number of
nurses that have left a facility divided by the total number of nurse
positions. However, there is no standard method for calculating turnover,
and methods used in different studies may vary.
American
Health Care Association, Facts
and Trends 1999, The Nursing Facility Sourcebook (Washington,
D.C.: AHCA, 1999).
Hospital
& Healthcare Compensation Service, Homecare
Salary and Benefits Report 2000-2001 (Oakland,
N.J.:
Hospital & Healthcare Compensation Service, 2000).
American
Health Care Association, Staffing
of Nursing Services in Long Term Care: Present Issues and Prospects for the
Future (Washington, D.C.: AHCA, 2001).
Homecare
Salary and Benefits Report, 2000-2001, 2000.
Federation
of Nurses and Health Professionals, The
Nurse Shortage: Perspectives from Current Direct Care Nurses and Former
Direct Care Nurses (opinion research study conducted by Peter D.
Hart Research Associates)(Washington, D.C.: 2001).
"Peter
I. Beurhaus, Douglas O. Staiger, and David I. Auerbach, "Implications of
an Aging Registered Nurse Workforce," JAMA,
Vol. 283, No. 22 (June 14, 2000).
In
addition to funding for scholarship and loan repayment awards, the NHSC
receives funding for support of its providers and operations.
In fiscal year 2001, this field budget was about $41 million.
Only
areas designated as a HPSA may apply for NHSC providers.
Currently, HHS considers a HPSA generally to be a location or area
with less than one primary care physician for every 3,500 persons. As of
June 30, 2001, HHS identified 2,968 primary care HPSAs.
To eliminate these HPSA designations, HHS identified a need of over
6,000 full-time physicians. HHS has
different criteria for dental and mental health HPSAs.
See
Health
Care Shortage Areas: Designations Not a Useful Tool for Directing Resources
to the Underserved (GAO/HEHS-95-200, Sept. 8, 1995).
See
Foreign Physicians: Exchange Visitor Program Becoming Major Route to
Practicing in U.S. Underserved Areas (GAO/HEHS-97-26, Dec. 30,
1996).
Historically,
HHS has not supported the waiver approach as a sound way to address
underservice needs in the United States.
While HHS is considering the issue, the agency still takes the
position that physicians should return home after completing their medical
training to make their knowledge and skills available to their home
countries.
To
calculate oversupply, we counted physicians as one full-time provider and
nonphysicians (nurse practitioners, nurse midwives, or physician assistants)
as one-half a full-time provider. If
only physician placements are counted, 6 percent of these shortage areas
would still be identified as oversupplied.
We consider these estimates of oversupply to be conservative because
our analysis does not include NHSC providers placed in prior years who were
still in service during vacancy year 1993.
See
National
Health Service Corps: Opportunities to Stretch Scarce Dollars and Improve
Provider Placement (GAO/HEHS-96-28, Nov. 24, 1995).
Amounts
are in 1999 dollars. This cost
analysis is based on new scholarship and new federal loan repayment awards
made in fiscal year 1999.
In
analyzing the net cost differences, we took into account the federal income
tax liability associated with scholarship and loan repayment awards.
In essence, loan repayment awards are increased to provide for the
resulting increased federal tax liability; scholarship awards are not.
However, as a result of the Economic
Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16, Sec. 413),
beginning January 1, 2002, scholarship payments of tuition, fees, and other
reasonable educational costs will not be subject to federal income tax.
As a result, the net cost to the federal government of a year of
service under the NHSC scholarship program will increase.
This
includes scholarship recipients who defaulted and paid the default penalty,
those who defaulted and subsequently completed or are serving their
obligation, and those who defaulted and have not begun service or payback.
The
law provides for three vacancies for each scholar in a given discipline and
specialty, up to a maximum of 500 vacancies.
For example, if there are 10 pediatricians available for service, the
NHSC would provide a list of 30 eligible vacancies for that group if there
were 500 or fewer vacancies in total.
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