U.S. companies added 217,000 jobs in May, according to the Bureau of Labor Statistics — and a decent chunk of them came in the healthcare industry.
The healthcare industry added 34,000 jobs last month, which amounts to twice its average monthly gain over the prior 12 months. A significant portion of that number came from the ambulatory healthcare services sector, which includes increases in physicians’ offices, outpatient care centers, and home healthcare services.
With the uptick, the healthcare industry has added jobs in 131 consecutive months. The last time the sector lost jobs was in July 2003.
Dan Diamond, the managing editor of the Daily Briefing, also points out that 100,000 jobs have been added in the healthcare sector over the first five months of the year, and the industry is on pace to add more than 230 jobs this year.
Will Healthcare Reform Create Jobs?
This surging demand for labor could be a significant boon to depressed rural areas. Indeed, onshore “rural sourcing” models located in economically depressed areas are potentially ideal host sites for healthcare claims processing centers. State and local governments are offering significant tax cuts and other incentives for companies to establish operations in economically distressed areas. In some cases, these incentives significantly narrow the gap between sourcing work domestically and off-shoring it to India or elsewhere.
In addition, certain functions involved in healthcare claims processing involve discretionary knowledge-based functions that include reviewing flagged claims and recognizing, for example, when a claim is potentially fraudulent or inaccurate. These functions, moreover, require Third Party Administrator accreditation and involve liability obligations. As such, off-shoring such roles is typically not viable either from a staffing or regulatory standpoint. Domestically based rural centers, on the other hand, could be well-positioned to provide skills needed for these positions.
The Big Boom In Health Care Jobs
More than doctors and nurses are in demand
A new national survey shows a pop in confidence among job-seekers in March, and the most confident of all are those who work, or hope to work, in the health care field.
The March 2014 Job Search Confidence Index, released Monday by the company StartWire, shows a spike in confidence about finding new employment among job seekers overall.
The jump in confidence was most dramatic among professionals seeking jobs in the healthcare industry.
The index had been gaining modestly in 2014, but noticeably increased to 53.69 in March, up from 50.95 in February. Scores above 50 indicate a strong belief among job seekers that they will find a job within 45 days.
The numbers show an even more dramatic increase among health care professionals, of more than six percent. The index for the sector climbed from 51.28 to 57.31 in March.
The healthcare industry added 34,000 jobs in May, according to the recent update from the Bureau of Labor Statistics.
May’s growth was twice the industry’s monthly average gain for the past 12 months, bringing the industry’s unemployment rate to 3.9 percent, down from 4.8 percent this time last year.
The majority of new healthcare jobs, (+23,000), were added in ambulatory settings, including:
- +3,600 jobs in physician offices
- +4,200 jobs in outpatient care centers
- +6,700 jobs in home health care
- Hospitals added only 7,000 jobs
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Companies that develop smart strategies to recruit and keep these professionals will have an easier time handling growth over the next six years, when healthcare is projected to surpass professional and business services to become the largest segment of the U.S. economy.
This expansion, from the current 17 million healthcare jobs to 22 million by 2020, means the competition for already scarce healthcare workers will get even tougher. That affects businesses of all sizes, from hospital enterprises like HCA Holdings and the vast in-store retail clinic operations of CVS Caremark and Walgreen Company on down to rural outpatient clinics, private practices, nursing-care facilities, and home health services.
Right now there’s a lot of movement within the industry as workers seek better pay, perks, and working conditions. Glassdoor’s survey found that 64% of the workers surveyed plan to seek out a new job within the next year—and more than 40% plan to launch their job search in the next three months. With such high demand for skilled medical staff, it’s understandable that workers would look for the best situations.
But it’s also telling that only one healthcare company made each of Glassdoor’s recent lists of the best companies for pay and perks (Kaiser Permanente) and the 50 best big places to work (Memorial Sloan Kettering Cancer Center). What can other employers learn from them and from healthcare workers’ responses to Glassdoor’s latest survey?
Originally posted 2014-10-08 19:44:58. Republished by Blog Post Promoter