Cost of Labor in the Healthcare Sector and the Impact on Prices

2023 UNC Business of Healthcare Conference
Panel 2B: Cost of Labor in the Healthcare Sector and the Impact on Prices
During the pandemic, healthcare employment decreased, causing a rapid rise in labor expenses for health systems. These higher expenses resulted from increased wages and temporary staffing. While healthcare employment began recovering in 2023, it hasn't fully returned to pre-pandemic levels. Labor costs, constituting over 50% of hospital expenses, remain a significant expense driver. Even a slight increase in labor costs can significantly impact a hospital's total expenses and margins. Care providers are grappling with managing labor costs while recruiting and retaining talent, leading to questions about the potential impact on prices. Will health systems pass rising labor costs to payors and patients or rethink their clinical workforce utilization?
Moderator: Adam Brown, Founder & Principal at ABIG Health Advisors
Panelists:
Qing Gong, Assistant Professor, Economics Department at UNC Chapel Hill
Coleen Santa Ana, Managing Owner at Alere Care Solutions
Jonathan Westin, Health Policy Strategist