Employment data released last week demonstrated some long overdue improvement in health care jobs. Unfortunately, not all subsectors benefitted as workers continue to be choosy about their job sites. Ambulatory care employment increased 33k while hospitals gained 1k and nursing facilities added 4k. Since Office of Physicians is the largest component of ambulatory care, we should see significant gains there when the more granular data is released next month. After reporting a decline in September, hospitals picked up a modest number of workers which may not have been distributed evenly among the hospital sub-types.
Those gains are coming at a price. Average Hourly Earnings for hospitals started their vertical climb in April and show no sign of stopping. Average Hourly Earnings at Physicians Offices have done the same, for the most part. Not all providers have felt the impact. Provider Relief Funds have muted some of the costs in many cases. According to earnings reports, commercially insured individuals have been more active in the health care system than Medicare or Medicaid beneficiaries. If that is the case more broadly, the lag on which Medicare raises reimbursement may pinch the post-acute focused providers, like EHC, AMED, CHE, LHCG and others when that population begins to use the health care system more consistently.
Have a great day.
Emily Evans
Managing Director – Health Policy
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