This is what some of my colleagues concluded in a recent report FTI Consulting’s Center for Healthcare Economics and Policy. in the titled “Protecting the Pipeline: How Public Choice Impacts Our Nation’s Healthcare Workforce“. Below are excerpts and some empirical results.
…Government rate setting under the public option could exacerbate healthcare labor shortages. Our analysis assumes that the public option will pay less for physicians than private insurance and will increase the proportion of patients in government programs, which may lead to reduced provider revenue. This could create problems with workforce recruitment and retention, discouraging aspiring workers from entering the field and prompting early retirement. These findings corroborate previous research conducted by FTI Consulting, which found that public options can leave hospitals financially struggling, leaving them with no choice but to reduce service offerings, operating hours, or time spent with patients to stay afloat. Our results also support previous research showing that low payment rates under the public option may lead to reduced workforces and other measures that may be detrimental to the quality of patient care.
Please read the entire report here.
