Alaska’s healthcare industry is struggling with a significant worker shortage, requiring more than 9,400 new workers each year to meet growing demand and high turnover rates, according to a recent report.
This shortage is compounded by the retirement of existing employees and the state’s aging population.
Alaska Beacon cites that the report, presented by Jared Kosin, executive director of the Alaska Hospital and Healthcare Association, highlights the challenging workforce needs in the state’s health care sector.
“To meet those variables, we have to find over 9,400 new healthcare workers every single year,” Kosin told the Anchorage Chamber of Commerce on Monday.
Alaska’s healthcare sector needs more workers
The workforce analysis, compiled by Rain Coast Data of Juneau, paints a clear picture of the state’s healthcare industry, which is the largest employer in Alaska.
The sector accounts for 11% of the state’s jobs, with over 44,000 workers. These employees contribute $3.4 billion in wages, making up 13% of the total wages in the state. Despite the large economic footprint, the industry faces an overwhelming demand for more workers.
Kosin referred to the workforce situation as a “good news-bad news story,” pointing out that while there are job opportunities, there aren’t enough people filling those roles. “We have these opportunities. We have jobs open now! Challenges: We have jobs open now!” Kosin said during his presentation.
Wages rising, but not enough workers
According to the report, wages in Alaska’s healthcare sector have increased by 47% since 2016, well above the state’s overall wage growth of 26%. This wage growth is largely attributed to the effects of the COVID-19 pandemic, which created severe staffing shortages. Despite the wage increases, the number of trained healthcare workers in the state is still insufficient to meet demand.
Kosin pointed out that the most significant need is for registered nurses. Of the 9,400 new healthcare workers needed each year, approximately 1,400 are registered nurses.
However, the report indicates that only 346 new registered nurses are expected to graduate from Alaska’s training programs this year, far below the demand. Similarly, the state will train only half of the needed nursing aides and just 11 certified medical aides, a fraction of the required 755.
Impact of an aging population on health care needs
Alaska’s aging population is also contributing to the increasing need for health care workers. As the state’s working-age population shrinks, demand for long-term and in-home care for the elderly is rising.
Kosin noted that this demographic shift will result in less emphasis on traditional hospital care and more focus on long-term and home-based services.
The report highlights a mismatch between available facilities and the growing need for long-term care services. According to surveys conducted by the Alaska Hospital and Healthcare Association, one out of every seven occupied hospital beds is used by patients who no longer require hospitalization but have no other place to receive ongoing care.
These extended stays are costly, with over 43,000 “avoidable days” accumulating annually, costing the state $188 million.
Rising costs of unmet healthcare needs
Kosin emphasized that the issue of patients occupying hospital beds without needing acute care presents not only a logistical challenge but also a financial one. As some of these patients continue to stay in hospitals, the cost of care rises.
At some point, Medicaid, Medicare, or insurance reimbursements may not cover the full cost of care for these extended stays, adding to the financial strain on the state’s healthcare system.
This ongoing shortage of healthcare workers is expected to worsen unless significant efforts are made to train and retain more workers in Alaska’s healthcare sector.
