| Efforts
to model the impact of changing demographics on the demand
for and supply of health professionals incorporate many of
the demographics trends discussed above as well as trends
in economics, technology, the education system, regulation
and legislative activities, the health care operating environment,
and the ability to substitute between health professionals.
Recent modeling efforts differ in level of sophistication,
factors used to forecast future supply and demand, and assumptions
made by analysts.
A consensus
exists that the supply of physicians and nurses can be predicted
with an adequate degree of accuracy even 10 or 20 years into
the future (see, for example, Tarlov [1995] and Prescott [2000]).
Previous efforts to model the requirements for health workers,
on the other hand, have met with mixed success and often with
controversy. As discussed above, efforts over the past two
decades to model requirements show there is little consensus
on how best to define requirements, the relationship between
requirements and its determinants, the future values of many
of these determinants, and forecasters' assumptions.
There
is often disagreement regarding how requirements should be
defined. For example, should requirements be defined by an
assessment of the population's needs? Should requirements
be based on demand and, if so, are current levels of employment
accurate measures of demand? Should requirements be defined
by benchmarking? For example, one could compare physician
staffing levels to a level determined to be "efficient" (e.g.,
HMO staffing patterns). Alternatively, one could compare physician-per-population
levels in the U.S. to levels in other countries. Or, should
requirements be defined as some combination of demand, needs,
and benchmarking? Despite these concerns and disagreements,
supply and demand models are important tools to help analysts
and policy makers understand the implications of trends and
policies.
This
section contains a brief description of two requirements forecasting
models recently updated by BHPr-the Physician Aggregate Requirements
Model (PARM) and the Nursing Demand Model (NDM)-and presents
preliminary forecasts of the impact of changing demographics
and other user-defined scenarios on requirements for the health
professions in these two models. Both models define requirements
as the number of health workers that the U.S. is likely to
demand based on population needs and economic considerations.
Demographics,
especially the growth in size of the elderly population, are
the driving force behind most projections of future workforce
requirements. Future demographics can be extrapolated with
some degree of accuracy based on historical patterns of fertility
rates, mortality rates and migration. The Census Bureau publishes
its middle series projections that extrapolates future population
levels based on expected fertility, mortality, and migration
patterns. The Census Bureau last updated the series in 1996,
and the middle series under-predicted the size of the 2000
population by approximately 6.8 million individuals (or 2.4
percent of the total population). The population projections
used in the PARM and NDM are based on the Census Bureau's
middle series projections, but incorporate adjustments based
on recently released 2000 census data.
5.1
Physician Aggregate Requirements Model
The
PARM combines projections of the future demand for health
care services, by medical specialty and setting, with estimates
of physician productivity to forecast future requirements.
Exhibit 5.1 provides an overview of this process.
For a more thorough description of the model and its capabilities
see PARM User Guide and Technical Report (Dall, 2002). To
calculate future demand for health care services, the PARM
first combines population projections (Exhibit 5.2)
by six age groups, three race/ethnicity groups, and sex (Box
1 of Exhibit 5.1) with estimates of the proportion
of the population in each of three insurance categories (Box
2) to divide the population into 108 categories (Box 3). The
six age categories are 0-17, 18-34, 35-54, 55-64, 65-74, and
75 years and older. The three race categories are non-Hispanic
white, African American (Hispanic and non-Hispanic), and other
(including white Hispanic). The three insurance categories
are (1) the insured who receive services in a fee-for-service
arrangement, (2) people enrolled in a health maintenance organization
(HMO), and (3) the uninsured.
The
PARM contains 22 categories of health professionals providing
patient care. These categories consist of 19 physician specialties
and three non-physician specialties (i.e., physical therapy,
podiatry, and optometry). The process to forecast requirements
is similar for both physicians and these three non-physician
specialties, although the data sources differ.
The
workload measures used in the PARM are physician-patient encounters
in each of five settings: (1) doctors' offices, (2) hospital
outpatient clinics and emergency departments, (3) hospital
inpatient (hospital rounds), (4) hospital inpatient (surgery),
and (5) other settings (e.g., nursing homes and home health).
The PARM multiplies the number of people in each population
category by its corresponding estimate of per capita physician-patient
encounters (Box 4) to estimate total demand for physician
services as measured by physician-patient encounters (Box
5). Estimates of total encounters in each setting (Box 5),
multiplied by the average minutes physicians spend per encounter
(Box 6), creates an estimate of total physician minutes required
to provide patient care (Box 7). Note that the minutes per
encounter include an adjustment for indirect patient care
to capture time spent on tasks such as completing paperwork
and reviewing patient histories.
Total
required minutes (Box 7), divided by estimates of total annual
patient care minutes per physician in each specialty (Box
8), creates forecasts of total physician requirements for
patient care activities (Box 9). The data on physician-patient
encounters and physician productivity come from the AMA annual
survey and thus only include MDs. Consequently, an adjustment
is made to the physician requirement counts to include DOs
(Box 10). Data on the number of DOs in 1999, by specialty,
come from the American Osteopathic Association. These numbers
are inflated, using recent growth rates by DO specialty, to
update the numbers to the base year of 2000. In addition,
requirements for physicians in non-patient care activities
(e.g., administration, teaching, and research) are calculated
as a fixed percentage of physicians in patient care. Calibration
adjustments are made to equate base year forecasts of actual
physician supply with base year estimates of total requirements
(Box 11), and this produces the refined forecasts of requirements
for the 22 original specialties plus a category for physicians
in nonpatient care activities. The base year for total MD
counts is 2000.[10]
The base year counts of MDs come from the AMA's Physician
Characteristics and Distribution in the US: 2002-2003 Edition.
Active MDs whose specialty is unknown are distributed
across the other specialties based on those specialties' proportion
of total active physicians.The shaded boxes (i.e., boxes 2,
4, and 6) indicate areas of the PARM where the user can easily
change the forecasting assumptions.
Exhibit
5.1 PARM Structure
Exhibit 5.2 U.S. Population Forecasts (in thousands)
|
Race |
Sex |
Age |
Year |
|
1999 |
2000 |
2005 |
2010 |
2015 |
2020 |
|
Non-Hispanic White |
Men |
0-17 |
22,737 |
22,628 |
22,042 |
21,315 |
21,067 |
21,143 |
|
18-34 |
21,373 |
21,223 |
21,069 |
21,375 |
21,641 |
21,174 |
|
35-54 |
29,670 |
29,974 |
29,654 |
27,994 |
25,887 |
24,596 |
|
55-64 |
9,027 |
9,231 |
11,341 |
13,104 |
14,371 |
14,675 |
|
65-74 |
6,871 |
6,846 |
6,894 |
7,854 |
9,817 |
11,599 |
|
75+ |
5,141 |
5,255 |
5,686 |
6,019 |
6,367 |
7,341 |
|
Men Total |
94,818 |
95,158 |
96,685 |
97,661 |
99,150 |
100,528 |
|
Women |
0-17 |
21,501 |
21,399 |
20,851 |
20,152 |
19,902 |
19,965 |
|
18-34 |
21,003 |
20,842 |
20,597 |
20,842 |
21,116 |
20,672 |
|
35-54 |
29,896 |
30,214 |
29,996 |
28,385 |
26,258 |
24,909 |
|
55-64 |
9,594 |
9,796 |
11,931 |
13,730 |
14,967 |
15,241 |
|
65-74 |
8,233 |
8,132 |
7,919 |
8,789 |
10,750 |
12,485 |
|
75+ |
8,887 |
9,011 |
9,352 |
9,318 |
9,395 |
10,184 |
|
Women Total |
99,113 |
99,395 |
100,646 |
101,216 |
102,389 |
103,456 |
|
Non-Hispanic White Total |
193,931 |
194,553 |
197,332 |
198,877 |
201,539 |
203,984 |
|
African American |
Men |
0-17 |
5,483 |
5,532 |
5,799 |
5,987 |
6,282 |
6,619 |
|
18-34 |
4,305 |
4,319 |
4,474 |
4,765 |
5,052 |
5,276 |
|
35-54 |
4,374 |
4,483 |
4,768 |
4,747 |
4,697 |
4,722 |
|
55-64 |
1,029 |
1,057 |
1,317 |
1,637 |
1,969 |
2,149 |
|
65-74 |
660 |
666 |
707 |
864 |
1,096 |
1,404 |
|
75+ |
400 |
408 |
450 |
473 |
517 |
594 |
|
Men Total |
16,252 |
16,465 |
17,515 |
18,472 |
19,613 |
20,763 |
|
Women |
0-17 |
5,310 |
5,354 |
5,593 |
5,754 |
6,017 |
6,322 |
|
18-34 |
4,643 |
4,653 |
4,800 |
5,053 |
5,338 |
5,566 |
|
35-54 |
4,999 |
5,125 |
5,477 |
5,626 |
5,582 |
5,602 |
|
55-64 |
1,277 |
1,313 |
1,634 |
2,102 |
2,512 |
2,735 |
|
65-74 |
937 |
947 |
1,009 |
1,136 |
1,423 |
1,802 |
|
75+ |
791 |
802 |
864 |
876 |
949 |
1,071 |
|
Women Total |
17,957 |
18,193 |
19,376 |
20,547 |
21,821 |
23,096 |
|
African American Total |
34,209 |
34,658 |
36,892 |
39,020 |
41,434 |
43,859 |
|
Other (including Hispanic White) |
Men |
0-17 |
8,676 |
8,899 |
10,050 |
11,092 |
12,317 |
13,752 |
|
18-34 |
8,340 |
8,453 |
9,160 |
9,063 |
10,324 |
11,398 |
|
35-54 |
6,221 |
6,488 |
7,627 |
10,078 |
10,741 |
11,450 |
|
55-64 |
1,298 |
1,357 |
1,786 |
2,408 |
3,051 |
3,710 |
|
65-74 |
761 |
791 |
945 |
1,224 |
1,608 |
2,111 |
|
75+ |
418 |
443 |
585 |
764 |
963 |
1,226 |
|
Men Total |
25,713 |
26,431 |
30,153 |
34,630 |
39,004 |
43,647 |
|
Women |
0-17 |
8,269 |
8,482 |
9,577 |
10,570 |
11,739 |
13,100 |
|
18-34 |
7,390 |
7,546 |
8,439 |
9,077 |
10,303 |
11,348 |
|
35-54 |
6,288 |
6,543 |
7,618 |
9,524 |
10,354 |
11,259 |
|
55-64 |
1,452 |
1,520 |
2,015 |
2,709 |
3,339 |
3,943 |
|
65-74 |
976 |
1,009 |
1,176 |
1,486 |
1,941 |
2,495 |
|
75+ |
642 |
681 |
901 |
1,182 |
1,455 |
1,810 |
|
Women Total |
25,017 |
25,780 |
29,725 |
34,549 |
39,130 |
43,955 |
|
Other Total |
50,730 |
52,211 |
59,877 |
69,179 |
78,134 |
87,602 |
|
Total U.S. Population |
278,870 |
281,422 |
294,100 |
307,075 |
321,107 |
335,444 |
Source:
Modified version of Census Bureau middle series projections.
The base
year for the PARM is 2000; however, data from 1996 to 2000
are pooled from some health care use databases to increase
sample size. Data from the 1999 National Health Interview
Survey (NHIS) are used to estimate the proportion of people
in each demographic category among three possible insurance
status groups.
5.1.1
Modeling Physician Requirements
To estimate
per capita demand for physician services from each of the
108 population groups in the PARM, we first estimated the
total amount of care that physicians in each specialty provide
in each setting. We estimated these totals using AMA estimates
for 1999 of the total number of MDs in each medical specialty
primarily engaged in patient care, and data from the 1998
and 1999 AMA physician surveys that asked respondents the
average number of weeks worked per year and average encounters
(i.e., visits or surgical procedures) per week with patients.
These data come from the 1999-2000 and 2000-2002 editions
of the Physician Socioeconomic Statistics. Published statistics
from the 1998 and 1999 surveys were averaged because sample
sizes for some specialties are relatively small.
We used
the following databases to determine the distribution of total
patient-physician encounters across the 108 population subgroups:
- The
1997, 1998, and 1999 National Ambulatory Medical Care Survey
(NAMCS) databases were pooled to analyze patient-physician
encounters in physicians' offices.
- The
1997, 1998 and 1999 National Hospital Ambulatory Care Survey
(NHAMCS) databases were pooled to analyze patient-physician
encounters in hospital outpatient and emergency department
settings.
- The
1997 and 1998 Health Care Cost and Utilization Project (HCUP)
databases were pooled to analyze patient-physician encounters
in hospital inpatient settings.
- The
1996 and 1998 National Home and Hospice Care Survey (NHHCS)
databases were pooled to analyze patient-physician encounters
in patients' homes.
As illustrated
in Exhibit 5.1, we combine information on per
capita demand for physician services obtained from an analysis
of these databases with population forecasts and estimates
of annual physician time spent in patient care to forecast
future requirements for physicians.
Below
we present forecasts of physical requirements under five scenarios.
We selected these scenarios based on policies being advocated
in the political arena and scenarios looked at in previous
modeling efforts. In all of these scenarios, changing demographics-and
in particular the aging of the population-are a major determinant
of the projected increase in physician requirements between
2000 and 2020. Comparing the forecasts from a particular scenario
to the forecasts from scenario 1 (which represents the status
quo) indicates the impact upon physician requirements attributed
to changing demographics and/or changes in forecasting assumptions.
- Scenario
1, the status quo, assumes that patterns of health
care use, insurance distribution, physician staffing, and
physician productivity remain constant over time similar
to the patterns that existed in the late 1990s.[11]
As discussed above, the PARM assumes that an adequate supply
of physicians existed in the base year (i.e., 2000). An
over (or under) supply of physicians in the base year will
result in an over (or under) estimate of requirements in
future years. Patterns of health care use cover the period
1996 to 1999.Under this scenario, the number of physicians
would increase from approximately 781,300 in 2000 to 1,038,200
in 2020, a 33 percent increase (Exhibits 5.3
and 5.4). At the same time, the U.S. population
would increase by 19 percent, so that the ratio of physician
per population would rise from 2.8 per thousand population
in 2000 to 3.1 per thousand population in 2020. Medical
specialties experiencing the largest percentage increases
in demand between 2000 and 2020 are cardiovascular diseases
(52 percent), radiology (51 percent), pathology (44 percent)
and various surgical specialties (44 percent). Medical specialties
experiencing the smallest percentage increases in demand
are pediatrics (11 percent), obstetrics/gynecology (14 percent)
and psychiatry (22 percent).
Exhibit
5.3 Impact of Changing Demographics on Requirements for Physicians:
Status Quo Scenario
|
Medical Specialty |
2000 |
2005 |
2010 |
2015 |
2020 |
% Change 2000 to 2020 |
|
Total Physicians (MDs and DOs) |
781,282 |
831,447 |
891,687 |
959,996 |
1,038,234 |
33 |
|
Total Patient Care Physicians |
733,342 |
780,266 |
836,594 |
900,574 |
973,840 |
33 |
|
General Primary Care |
268,710 |
283,632 |
300,651 |
320,992 |
344,907 |
28 |
|
GP & FP |
109,571 |
115,583 |
122,512 |
130,358 |
139,252 |
27 |
|
General Internal Med. |
106,411 |
114,197 |
123,645 |
134,406 |
146,885 |
38 |
|
Pediatrics |
52,728 |
53,852 |
54,494 |
56,228 |
58,770 |
11 |
|
Medical Specialties |
96,926 |
104,145 |
113,200 |
123,560 |
135,331 |
40 |
|
IM Subspecialties |
40,205 |
43,336 |
47,301 |
51,841 |
56,955 |
42 |
|
Cardiovascular Diseases |
20,828 |
22,675 |
25,143 |
28,172 |
31,690 |
52 |
|
Other Medical Specialties |
35,893 |
38,133 |
40,756 |
43,548 |
46,687 |
30 |
|
Surgery |
161,160 |
171,133 |
183,519 |
197,706 |
213,196 |
32 |
|
General Surgery |
37,604 |
40,605 |
44,473 |
48,805 |
53,641 |
43 |
|
Obstetrics/Gynecology |
43,068 |
44,547 |
46,168 |
47,802 |
48,962 |
14 |
|
Otolaryngology |
9,839 |
10,326 |
10,877 |
11,520 |
12,248 |
24 |
|
Orthopedic Surgery |
23,225 |
24,804 |
26,736 |
28,965 |
31,596 |
36 |
|
Urology |
10,690 |
11,455 |
12,448 |
13,696 |
15,122 |
41 |
|
Ophthalmology |
18,876 |
20,099 |
21,650 |
23,643 |
25,972 |
38 |
|
Other Surgical Specialties |
17,858 |
19,296 |
21,167 |
23,276 |
25,655 |
44 |
|
Other Patient Care |
206,545 |
221,355 |
239,224 |
258,315 |
280,405 |
36 |
|
Psychiatry |
44,495 |
46,877 |
49,340 |
51,537 |
54,116 |
22 |
|
Anesthesiology |
36,762 |
39,547 |
43,188 |
47,499 |
52,493 |
43 |
|
Emergency Medicine |
23,494 |
24,813 |
26,206 |
27,802 |
29,505 |
26 |
|
Radiology |
30,354 |
33,218 |
36,919 |
41,005 |
45,855 |
51 |
|
Pathology |
16,757 |
18,229 |
20,174 |
22,019 |
24,167 |
44 |
|
Other Specialties |
54,683 |
58,672 |
63,398 |
68,453 |
74,270 |
36 |
|
Non Patient Care |
47,940 |
51,182 |
55,093 |
59,422 |
64,394 |
34 |
|
Total U.S. Population (Thousands) |
281,422 |
294,100 |
307,075 |
321,107 |
335,444 |
19 |
Exhibit
5.4 Forecasts of Physician Requirements Under the Status Quo
Scenario

Exhibit
5.4 Forecasts of Physician Requirements Under the Status Quo
Scenario (Text Only)
|
|
2000
|
2005
|
2010
|
2015
|
2020
|
| General
Primary Care |
268,710
|
283,632
|
300,651
|
320,992
|
344,907
|
| Medical
Specialties |
96,926
|
104,145
|
113,200
|
123,560
|
135,331
|
| Surgery
|
161,160
|
171,133
|
183,519
|
197,706
|
213,196
|
| Other
Patient Care |
206,545
|
221,355
|
239,224
|
258,315
|
280,405
|
| Non
Patient Care |
52,327
|
55,807
|
59,981
|
64,626
|
69,979
|
- Scenario
2, baseline, produces the requirements forecasts that are
most likely to occur based on projected trends in managed
care growth and the shifting of care from higher cost to
lower cost settings. This scenario is comparable to the
baseline scenario in the NDM, described later in Section
5.2, which assumes that HMO enrollment rates will increase
by half a percentage point per year between 2000 and 2020
(with the gains in HMO enrollment coming from the population
insured under a fee-for-service arrangement). In addition,
this scenario assumes that each year, 2 of inpatient-based
surgeries will shift to an outpatient setting. Regression
analyses conducted to update the NDM find that for each
1 increase in the proportion of hospital-based surgeries
performed on an outpatient basis, demand for inpatient days
at acute care hospitals will decline by 0.47, outpatient
visits will increase by 0.66, and home health visits will
increase by 0.86. Using this information, the baseline scenario
assumes a gradual decrease in per capita demand for inpatient
days and surgery performed on an inpatient basis, and a
gradual increase in outpatient visits and "other" visits.
Exhibit 5.5 presents the forecasts for this
scenario. Under this scenario, total requirements for physicians
would increase by 28 percent between 2000 and 2020 to 996,400.
Compared to the status quo scenario, there would be the
same level of growth in general primary care specialties
(28 percent), but slower growth in medical specialties (33
percent versus 40 percent), surgical specialties (17 percent
versus 32 percent), and "other" patient care specialties
(32 percent versus 36 percent).
Exhibit
5.5 Impact of Changing Demographics on Requirements for Physicians:
Baseline Scenario
|
Specialty |
2000 |
2005 |
2010 |
2015 |
2020 |
% Change
2000 to 2020 |
| Total
Physicians (MDs and DOs) |
781,282 |
823,465 |
874,019 |
931,208 |
996,387 |
28 |
|
Total Patient Care Physicians |
733,342 |
772,936 |
820,389 |
874,069 |
935,248 |
28 |
|
General Primary Care |
268,710 |
284,113 |
301,283 |
321,556 |
345,039 |
28 |
|
GP & FP |
109,571 |
115,576 |
122,428 |
130,168 |
138,846 |
27 |
|
General Internal Med. |
106,411 |
114,438 |
123,929 |
134,583 |
146,730 |
38 |
|
Pediatrics |
52,728 |
54,099 |
54,926 |
56,806 |
59,463 |
13 |
|
Medical Specialties |
96,926 |
102,850 |
110,381 |
119,005 |
128,730 |
33 |
|
IM Subspecialties |
40,205 |
42,759 |
46,041 |
49,799 |
53,993 |
34 |
|
Cardiovascular Diseases |
20,828 |
22,235 |
24,192 |
26,629 |
29,440 |
41 |
|
Other Medical Specialties |
35,893 |
37,856 |
40,149 |
42,577 |
45,297 |
26 |
|
Surgery |
161,160 |
165,957 |
172,525 |
180,173 |
188,291 |
17 |
|
General Surgery |
37,604 |
38,974 |
40,943 |
43,086 |
45,378 |
21 |
|
Obstetrics/Gynecology |
43,068 |
43,721 |
44,495 |
45,260 |
45,567 |
6 |
|
Otolaryngology |
9,839 |
10,003 |
10,214 |
10,498 |
10,847 |
10 |
|
Orthopedic Surgery |
23,225 |
23,995 |
25,001 |
26,169 |
27,547 |
19 |
|
Urology |
10,690 |
11,115 |
11,737 |
12,567 |
13,511 |
26 |
|
Ophthalmology |
18,876 |
19,746 |
20,915 |
22,491 |
24,378 |
29 |
|
Other Surgical Specialties |
17,858 |
18,402 |
19,219 |
20,102 |
21,064 |
18 |
|
Other Patient Care |
206,545 |
220,016 |
236,199 |
253,334 |
273,187 |
32 |
|
Psychiatry |
44,495 |
46,925 |
49,329 |
51,398 |
53,782 |
21 |
|
Anesthesiology |
36,762 |
39,547 |
43,188 |
47,499 |
52,493 |
43 |
|
Emergency Medicine |
23,494 |
24,285 |
25,103 |
26,079 |
27,122 |
15 |
|
Radiology |
30,354 |
33,218 |
36,919 |
41,005 |
45,855 |
51 |
|
Pathology |
16,757 |
18,229 |
20,174 |
22,019 |
24,167 |
44 |
|
Other Specialties |
54,683 |
57,812 |
61,487 |
65,333 |
69,768 |
28 |
| Non
Patient Care |
47,940 |
50,528 |
53,630 |
57,140 |
61,139 |
28 |
|
Total Population (Thousands) |
281,422 |
294,100 |
307,075 |
321,107 |
335,444 |
19 |
- Scenario
3, universal health care coverage, assumes that the entire
U.S. population has medical insurance. Under this scenario,
the PARM moves a portion of the uninsured population into
the insured fee-for-service and HMO settings based on the
current proportion of the insured population in each of
those two settings. The primary motivation for this scenario
is that some advocates for the uninsured would like to see
the Government sponsor more initiatives to cover the uninsured.
Under this scenario, total demand for physicians would have
been an estimated 817,615 in 2000, and would increase to
an estimated 1,092,400 in 2020-a 40 percent increase from
current (2000) baseline and/or status quo levels (Exhibits
5.6, 5.7, and 5.8). (It should be
noted that under the status quo scenario, although substantially
short of universal coverage, the percentage of population
with medical insurance will rise over time as the population
ages and a larger proportion of the population becomes Medicare-eligible.)
- Scenario
4 is universal health care coverage with 100 of the population
enrolled in a health maintenance organization. The motivation
for this scenario is work performed by Weiner (1994) and
others on requirements for physicians under a managed care
environment. Under this scenario, total physician requirements
would have been an estimated 781,900 in 2000 and would increase
to 1,059,900 in 2020-a 36 percent increase from current
levels (Exhibits 5.6, 5.7, and 5.8).
- Scenario
5, non-minority rates, assumes that minorities have similar
rates of medical insurance coverage as non-Hispanic whites
within each demographic group defined by age and sex. Under
this scenario the percentage of the population uninsured,
insured under a fee-for-service arrangement, and in an HMO
applicable to non-Hispanic whites is applied to the other
two race/ethnicity groups. The motivation for this scenario
is equality across racial and ethnic groups in access to
medical coverage. Under this scenario, demand for physicians
would have been an estimated 802,400 in 2000, increasing
to 1,072,000 in 2020-a 37 percent increase from current
levels (Exhibits 5.6, 5.7, and 5.8).
Exhibit
5.6 Forecasted Physician Requirements Under Five Scenarios
Exhibit
5.7 Forecasts of Physician Requirements in 2000 Under Alternative
Scenarios
Exhibit
5.7 Forecasts of Physician Requirements in 2000 Under Alternative
Scenarios (Text Only)
|
|
Total
Physicians |
| Status
Quo |
781,282
|
| Baseline
|
781,282
|
| Universal
Coverage |
817,615
|
| Universal
HMO Coverage |
781,889
|
| Non-minority
Rates |
802,356
|
Exhibit
5.8 Forecasts of Total Physician Requirements in 2020 Under
Alternative Scenarios
Exhibit
5.8 Forecasts of Total Physician Requirements in 2020 Under
Alternative Scenarios (Text Only)
|
|
Total
Physicians |
| Status
Quo |
1,038,234
|
| Baseline
|
996,387
|
| Universal
Coverage |
1,092,381
|
| Universal
HMO Coverage |
1,059,907
|
| Non-minority
Rates |
1,072,048
|
5.1.2
Modeling Requirements for Physical Therapists, Optometrists,
and Podiatrists
The
PARM also models requirements for physical therapists, optometrists,
and podiatrists. These three specialties are modeled using
the same approach as physicians, but rely on different data
sources. The following data sources are used to model demand
for physical therapists:
- Data
from the 2000 Occupational Employment Statistics (OES),
which are published by the Bureau of Labor Statistics (BLS),
provide information on the total number of physical therapists
in 2000. In addition, the BLS reports the total hours per
week worked, and weeks per year worked, on average, for
physical therapists:
- The
American Physical Therapy Association estimates that physical
therapists spend approximately 13.9 percent of their time
in inpatient settings (Vector Research Inc., 1997). Multiplying
this percentage by the estimate of the total number of physical
therapists as published by the BLS produced an estimate
of the number of FTE physician therapists working in inpatient
settings.
- An
analysis of the 1996 Medical Expenditure Panel Survey (MEPS)
provided additional information on the distribution of visits
with physical therapists by delivery setting, but the sample
sizes were insufficient to estimate the distribution of
visits across the 108 population groups in the PARM. Consequently,
we pooled data from the 1998, 1999, and 2000 NHIS on people
who reported a visit with a physical therapist to distribute
our estimate of total physical therapist visits across the
108 population groups. [12]
The following
data sources and steps describe the approach used to forecast
requirements for optometrists:
- A
major source of data on optometrists is a paper by White,
Doksum and White (2000) entitled "Workforce Projections
for Optometry." These authors analyzed survey data and report
information on the current size of the optometrist workforce,
patient encounters and associated time requirements, and
demographic characteristics of patients. In addition, these
analysts provide estimates of the total hours per week worked
in patient and non-patient care.
- One
important data item not included in the White et al. paper
was a breakdown of the hours spent by optometrists in different
patient care settings. An examination of the 1998 BMAD (Part-B
Medicare Annual Data) beneficiary file, which provides information
on Medicare Part-B carriers, provided some information on
the distribution of patients by practice setting. Although
Medicare patients make up only a small percentage of total
visits to optometrists, we used the distribution of practice
setting from optometrists who saw Medicare patients to approximate
the overall distribution of optometrists' time by delivery
setting. This was a less than perfect remedy, but it does
not alter the accuracy of the forecasts except with regard
to practice setting. This is because the data on the actual
productivity of the optometrists, which is based on minutes
per visit and total patient care hours worked, comes directly
from the White et al. survey. Productivity is assumed equal
among all practice settings.
- Although
the White et al. paper provides information on patient demographics,
the information is insufficient to distribute total visits
across the 108 population groups in the PARM. Like the analysis
for physical therapists, we pooled data from the 1998, 1999,
and 2000 NHIS on people who reported a visit to an eye doctor
(including optometrists and ophthalmologists) to distribute
our estimate of total optometrist visits across the 108
population groups. We used a similar approach to estimate
base year visits to podiatrists and then extrapolate future
requirements for podiatrists.
- The
American Podiatric Medical Association (APMA) provides data
on total visits to podiatrists per year, as well as the
total number of FTE podiatrists in the current workforce.
[13]
APMA also publishes data indicating the hours per week,
weeks per year, and visits per week of the typical podiatrist.
- To
distribute total visits across the 108 population groups
in the PARM, we pooled data from the 1998, 1999, and 2000
NHIS on people who reported a visit to a foot doctor.
- Finally,
to create a distribution of visits over practice settings,
BMAD Medicare data were analyzed in a similar fashion to
that used for optometrists. The totality of these data sources
proved sufficient to create baseline estimates for podiatrist
visits by demographic group, and the order of the procedures
undertaken was analogous to that used for optometrists.
Exhibit
5.9 shows the requirements projected for these three
professions. In 2000, there were an estimated 120,410 physical
therapists, 30,468 optometrists, and 13,320 podiatrists. Under
the status quo scenario, the number of physical therapists,
optometrists, and podiatrists will increase by 18 percent,
20 percent, and 28 percent, respectively, between 2000 and
2020. Exhibit 5.10 shows the projected requirements
under the five scenarios described previously.
Exhibit
5.9 Impact of Changing Demographics on Requirements for Physical
Therapists, Optometrists, and Podiatrists
|
Profession |
2000 |
2005 |
2010 |
2015 |
2020 |
% Change 2000 to 2020 |
|
Physical Therapy |
120,410 |
125,476 |
130,636 |
136,235 |
142,065 |
18 |
|
Optometry |
30,468 |
31,825 |
33,270 |
34,900 |
36,576 |
20 |
|
Podiatry |
13,320 |
14,066 |
14,916 |
15,910 |
17,030 |
28 |
|
Total U.S. Population (Thousands) |
281,422 |
294,100 |
307,075 |
321,107 |
335,444 |
19 |
Exhibit
5.10 Forecasted Requirements for Physical Therapists, Optometrists,
and Podiatrists Under Alternative Scenarios
|
Scenario |
Physical Therapy |
Optometry |
Podiatry |
|
2000 |
2020 |
2000 |
2020 |
2000 |
2020 |
|
1: Status Quo |
120,410 |
142,065 |
30,468 |
36,576 |
13,320 |
17,030 |
|
2: Baseline |
120,410 |
165,360 |
30,468 |
39,326 |
13,320 |
18,410 |
|
3: Universal Coverage |
126,163 |
149,291 |
32,233 |
38,735 |
14,034 |
17,935 |
|
4: 100HMO |
137,111 |
171,790 |
36,793 |
46,781 |
17,258 |
23,297 |
|
5: Non-minority Rates |
122,301 |
145,128 |
30,925 |
37,286 |
13,536 |
17,391 |
5.2
Nursing Demand Model
The
Nursing Demand Model forecasts demand for RNs, LPNs and nurse
aides by delivery setting and State through 2020 based on
projected changes in demographics and other factors that affect
patterns of health care use and nurse staffing. Below is a
brief description of the recently revised NDM and preliminary
forecasts that show the impact of changing demographics and
other determinants on nurse demand. For a more detailed description
of the NDM, the data used in the NDM, the assumptions that
go into the model and the forecasts, see The Nursing Demand
Model: Development and Baseline Forecasts (Dall and Hogan,
2002).
The
NDM uses an eclectic approach to forecast demand that combines
empirical analysis with input from health care experts regarding
how the health care system operates and the role of nurses
in the delivery of care. The purpose of the model is to forecast
future demand for health care services in different delivery
settings, and then to forecast the number of FTE RNs, LPNs,
and nurse aides in each setting to meet the projected demand
for nursing services. The NDM forecasts demand for nurses
at the State level and then aggregates these numbers to obtain
a national estimate. The NDM seeks to answer four questions:
- What
will be the future health care demands of the population?
- Where
will patients receive health care services?
- What
level of nursing services will patients require?
- Who
will provide these nursing services?
Exhibit
5.11 visually depicts how the NDM combines input databases
and forecasting equations to answer these four questions. The
NDM contains two major components: (1) the data and equations
to forecast future demand for health care services, and (2)
the data and equations to forecast future nurse staffing patterns.
Modeling
Demand for Health Care
The
following steps produce forecasts for inpatient days in short-term
(ST) and long-term (LT) hospitals, outpatient and emergency
department visits in ST hospitals, nursing facility residents,
and home health visits:
- Step
1, combine State-level population forecasts with national
estimates of per capita health care utilization to extrapolate
expected demand for health care services. For each of the
six health care delivery settings modeled, there are 32
per capita utilization rates applied to 32 population strata
divided into eight age categories, by sex, and by urban
or rural location. The eight age categories are ages 0-4,
5-17, 18-24, 25-44, 45-64, 65-74, 75-84, and 85 and older.
Then, apply per capita utilization rates from the base year
(1996) to extrapolate demand for health care services. Demand
is measured in terms of inpatient days, outpatient visits,
and emergency department visits in hospitals; home health
visits; and nursing facility residents. This first step
controls for variation across States and over time in demographics.
- Step
2, adjust up or down these initial extrapolations of health
care demand in each State and year based on projected changes
in the health care operating environment, economic conditions,
and the overall health of the population. This step creates
a more refined forecast of future demand for health care
services. The relationship between demand for health care
and its determinants (e.g., HMO enrollment rates, changes
in technology), after controlling for demographics, was
estimated using multiple regression analysis.
- Step
3, calibrate the model by calculating multiplicative adjustment
factors that equate base-year forecasts of health care demand
with the base-year estimates of actual demand, and then
apply these State-level adjustment factors to the forecasts.
Modeling
Nurse Staffing Intensity
The following
steps produce forecasts of staffing intensity measured in
terms of FTE nurses per inpatient day, per visit, per nursing
facility resident, or per population depending on the nurse
type and setting modeled.
- Step
1, apply the projections of future health care market conditions
and other determinants of staffing intensity (e.g., relative
wages of RNs, LPNs, and nurse aides, patient acuity levels,
and reimbursement rates for health care services) to the
22 forecasting equations-one for each nurse-type-by-setting
combination-to create preliminary estimates of staffing
intensity. These forecasting equations were estimated by
regressing nurse staffing intensity on various determinants.
- Step
2, calibrate the model by calculating multiplicative adjustment
factors that equate base-year forecasts of staffing intensity
with the base-year estimates of actual staffing intensity,
and then apply these State-level adjustment factors to the
forecasts.
Combining
estimates of future demand for health care services (e.g.,
demand for inpatient care in ST hospitals as measured in total
inpatient days) with forecasts of future staffing intensity
(e.g., FTE nurses per 1,000 inpatient days) creates the demand
forecasts.
The majority
of the forecasting equations were estimated using multiple
regression analysis with State-level data from 1996 through
2000 (although most regression equations were estimated using
a subset of these years based on data availability). Both
theory and empirical analysis helped determine which exogenous
variables to use in the forecasting equations. Three criteria
considered in selecting variables are (1) a logical relationship
between the exogenous variable and the dependent variable,
(2) the impact of the exogenous variable on the dependent
variable is statistically significant, and (3) forecasts of
the exogenous variables are readily available or can be reliably
extrapolated into the future.
The revised
NDM runs as a stand-alone program to be run on a personal
computer in a Windows environment. The model, like the PARM,
allows the user to change assumptions regarding the future
determinants of nurse demand.
Exhibit
5.11 Overview of the Nursing Demand Model
Data
on nurse staffing levels during the base year come from multiple
sources. The estimates of FTE RNs come from the 1996 Sample
Survey of RNs. Estimates of LPNs and nurse aides come from
the Bureau of Labor Statistics (BLS) Occupational Employment
Statistics (OES), the American Hospital Association (AHA)
annual survey, and the American Health Care Association (AHCA).
Data that describe the current and future trends in the health
care operating environment, patient acuity levels, economic
conditions, etc., and that are used to forecast future health
care utilization patterns and nurse staffing patterns come
from publications from various government agencies and private
organizations. The NDM assumes that the labor market for nurses
was in equilibrium in 1996 (the base year) with the exception
of hospitals. The NDM uses employment levels in 1996 as a
demand-based measure of nurse requirements, but increases
requirements for RNs in hospitals by 7 percent above employment
levels. The reason for this adjustment is based on analyses
of the 1992, 1996, and 2000 Sample Surveys of RNs that show
a significant decrease in the proportion of RNs in hospitals
between 1992 and 1996-possibly as a result of extensive cost-cutting
measures and hospital mergers that occurred during the early
1990s (Dall and Hogan, 2002). Hospitals in many parts of the
U.S. have been unable to fill vacant RN positions reopened
after these turbulent times for RNs in hospitals.
The
forecasts presented below show the increase in projected demand
for nurses under a status quo scenario where there is no change
in per capita health care utilization rates (within the 32
demographic groups) and no change in nurse staffing ratios
(Exhibit 5.12). This scenario is comparable
to the status quo scenario used to forecast physician requirements
using the PARM. These projections simply show the impact of
changing demographics on the demand for health care services.[14]
Under this scenario, changing demographics
will result in a projected 28 percent increase in demand for
RNs between 2000 and 2020, a 32 percent increase in demand
for LPNs, and a 37 percent increase for nurse aides. The areas
with the largest percentage growth are those that predominantly
serve the elderly: home health and nursing facilities (Exhibit
5.13).
Note
that these forecasts of total nurse requirements under the
status quo scenario are lower than The NDM baseline scenario
forecasts which incorporate trends in factors other than changing
demographics that affect future demand for nurses (Exhibits
5.14 and 5.15). The NDM's baseline forecast
predicts an increase in total FTE RN requirements from 2 million
in 2000 to 2.8 million in 2020 (a 41 percent increase), an
increase in total FTE LPN requirements from 618,000 in 2000
to 905,000 in 2020 (a 46 percent increase), and an increase
in FTE nurse aide and home health aide requirements from 1.5
million in 2000 to 2.3 million in 2020 (a 50 percent increase).
Demand for nurses and nurse aides will continue to grow in
hospitals during the next two decades, but at a slower rate
than for the nursing professions as a whole. The exception
is the strong growth in demand for RNs in hospital outpatient
settings as technological innovations and managed care trends
shift patients from inpatient to outpatient care.
Under
the baseline scenario, the aging of the population and resulting
increase in demand for geriatric care suggests large increases
in demand for nurses and nurse aides in home health and nursing
facilities. Demand for RNs, LPNs and NAs in home health is
projected to increase by 109 percent, 137 percent, and 67
percent, respectively, between 2000 and 2020. Demand for RNs,
LPNs and NAs in nursing facilities is projected to increase
by 66 percent, 66 percent, and 61 percent, respectively, between
2000 and 2020.
Exhibit
5.12. Forecasts of FTE Nurse Demand: Status Quo Scenario
Exhibit
5.12. Forecasts of FTE Nurse Demand: Status Quo Scenario
(Text Only)
|
|
1996
|
2000
|
2005
|
2010
|
2015
|
2020
|
| Registered
Nurses |
1,889,326
|
1,964,920
|
2,075,690
|
2,198,904
|
2,342,782
|
2,505,747
|
| Licensed
Practical Nurses |
578,444
|
604,151
|
644,026
|
687,281
|
734,242
|
787,329
|
| Nurse
Aides & Home Health Aides |
1,487,915
|
1,487,792
|
1,593,810
|
1,708,561
|
1,835,164
|
1,983,582
|
Exhibit
5.13. Forecasts of FTE Nurse Demand: Status Quo Scenario
Exhibit
5.14. Forecasts of FTE Nurse Demand: Baseline Scenario
Exhibit
5.14. Forecasts of FTE Nurse Demand: Baseline Scenario
(Text Only)
|
|
1996
|
2000
|
2005
|
2010
|
2015
|
2020
|
| Registered
Nurses |
1,889,326
|
2,001,198
|
2,160,980
|
2,346,388
|
2,568,253
|
2,822,388
|
| Licensed
Practical Nurses |
578,444
|
617,946
|
675,190
|
740,928
|
816,291
|
905,159
|
| Nurse
Aides & Home Health Aides |
1,487,915
|
1,545,722
|
1,702,803
|
1,880,368
|
2,083,860
|
2,323,518
|
Exhibit
5.15 Forecasts of FTE Nurse Demand: Baseline Scenario
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
|