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Changing Demographics and the Implications for Physicians, Nurses, and Other Health Workers

Introduction

The size and characteristics of the future health workforce are determined by the complex interaction of the health care operating environment, economic factors, technology, regulatory and legislative actions, epidemiological factors, the health care education system and demographics. Efforts over the past several decades to model the supply of and demand (or "requirements") for health workers show there is a lack of consensus on the relationship between the health workforce and its determinants, the future values of many of these determinants, and forecasters' assumptions. [1]

Furthermore, past forecasts of impending surpluses and shortages of health professionals often failed to materialize, leading to the general consensus that a much better understanding is needed about the dynamics affecting the supply of and demand for health professionals.

The Workforce Analysis Branch of the Bureau of Health Professions (BHPr), Health Resources and Services Administration (HRSA), commissioned a report synthesizing the literature on one set of factors that will have a profound impact on the future health workforce-changing demographics. In addition, BHPr commissioned the updating of two requirements forecasting models: the Physician Aggregate Requirements Model (PARM) and the Nursing Demand Model (NDM).

This report discusses findings from the literature review of the implications of important demographic trends for the health workforce. In addition, this report presents findings from the NDM and PARM to quantify the impact of changing demographics on demand for allopathic (MD) and osteopathic (DO) physicians, registered nurses (RNs), licensed practical nurses (LPNs), nurse aides and home health aides (NAs), physical therapists, optometrists, and podiatrists. This report also presents forecasts from the PARM and NDM for several scenarios with different assumptions regarding the future health care operating environment, the productivity of doctors and nurses, and other factors.

Although the demographic trends discussed here have implications for the entire health workforce, the discussion in this report is heavily tilted towards the physician and nursing professions. Reasons for this focus include the dominance of these professions in the health workforce literature, the focus on these professions by government commissions and policy makers, and the availability of the PARM and NDM for forecasting requirements for physicians and nurses.

Demographics are a major determinant of the size and characteristics of the future health workforce, and demographic trends can be extrapolated with reasonable accuracy one or two decades into the future. In addition to the growth in size of the U.S. population in future decades, three demographic trends have profound implications for the future health workforce:

  • First, the population is aging and the size of the elderly population will increase substantially. An aging population will place greater demands on the health care system at the same time that many health professionals will be retiring. Also, as the population ages there will be a continuing shift in the type and setting of services provided.
  • Second, the population is becoming more racially and ethnically diverse. Concerns that minorities are underrepresented in the health workforce have both equity implications for people who need health care services and efficiency implications for the health care system. As minorities constitute a larger proportion of persons entering the workforce, the U.S. population will increasingly rely on minority health workers for their care.
  • Third, the population is shifting geographically and a significant portion of the U.S. population will continue to reside in areas with persistent shortages of health workers. These trends highlight the need for forecasting models that can make State-level and sub-State-level forecasts of health worker supply and demand.

Other demographic trends with implications for the future supply of and demand for health workers include changes in fertility patterns, family size and composition, longevity, immigration, and overall health of the population. These trends are discussed within the context of the three major trends discussed above.

In both the PARM and NDM, requirements are defined as the number of health professionals demanded based on the level of health care services that society is willing to purchase given population needs and economic considerations. Other authors have used “need” to define requirements, where need is based on the analyst’s assessment of what constitutes an adequate supply of health workers, independent of society's willingness or ability to purchase services.

Using the PARM and NDM, we forecast future demand for health care services and the derived demand for 19 physician specialties, nurses, and the other health workers listed previously. We forecast a “status quo” scenario that assumes no change in per capita health care utilization patterns, health worker productivity, and health worker staffing patterns. Under such a scenario, between the years 2000 and 2020, changing demographics would cause an estimated 30 percent increase in inpatient days, a 20 percent increase in outpatient visits, and a 17 percent increase in emergency department visits at general, short-term hospitals.  Inpatient days at non-general and long-term hospitals would increase by an estimated 33 percent; the number of nursing facility residents would increase by 40 percent; the number of home health visits would increase by 36 percent; and the number of visits to physicians’ offices would increase by 23 percent.

The change in demand for health care services would increase requirements for physicians by approximately 33 percent, although the increase in requirements would vary by medical specialty. For example, requirements for cardiologists would increase by an estimated 52 percent while requirements for pediatricians would increase by an estimated 11 percent. Requirements would increase approximately 28 percent for RNs, 30 percent for LPNs, and 33 percent for nurse aides (including home health aides).

Although demographics are a dominant determinant of the demand for health workers, other important factors are the characteristics of the future health care system, economic considerations, technological advances, and population needs. A detailed discussion of these trends is outside the scope of this project; however, the extant literature in this area is relatively large. [2] Using the PARM and NDM, we forecast future requirements for selected health care professions under alternative scenarios regarding the future health care operating environment.

The baseline scenario in both the PARM and NDM produce the forecasts that are most likely to occur based on changing demographics and projected trends in the factors listed above (e.g., trends in insurance coverage and economic considerations). The baseline forecasts for physician requirements are slightly lower than under the status quo scenario (28 percent growth between 2000 and 2020 instead of 33 percent growth), and the change in requirements for individual physician specialties is quite different in some cases. Under the NDM’s baseline scenario, requirements for RNs grow faster than under the status quo scenario (41 percent growth between 2000 and 2020 instead of 28 percent growth), reflecting different assumptions about changes in average patient acuity levels and other factors. Under the baseline scenario, total requirements for LPNs, nurse aides, and home health aides rise faster than forecasts under the status quo scenario.

The remaining sections in this report discuss the implications for the health workforce of the aging population (Section 2), the changing racial and ethnic composition of the population (Section 3), and population geographic location (Section 4). Each of these sections presents information on the demographic trend, discusses the implications of the trend on demand for health care services and derived demand for health workers, and discusses the implications for the supply of health workers. Section 5 describes the recently updated PARM and NDM and presents findings from these models. Section 6 summarizes the main findings of this effort and discusses areas for additional research.

Executive Summary | Introduction | Aging of the Population | Changing Racial and Ethnic Composition of the Population | Geographic Location of the Population | Modeling the Impact of Changing Demographics on the Future Demand for Health Professionals | Summary and Conclusions | References

 


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