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What does passage of the “debt ceiling” bill mean for the healthcare workforce?

On May 31, the House passed H.R. 3746 – the Fiscal Responsibility Act of 2023, otherwise known as the “debt ceiling” bill, which increased the federal debt limit, established new discretionary spending limits, rescinded unused funds, and expanded work requirements for federal programs. It was passed by the Senate on June 1 and will soon be signed into law.  What does all this have to do with healthcare workforce? Well, part of the rescindment plan comes from $28 billion in unused pandemic funding, with a substantial portion of those funds that were allocated for healthcare workforce efforts. This includes funds set to be used for mental health and substance use disorder training, grants to improve mental health and burnout in the healthcare workforce, and additional educational and training grants for promoting future workforce. Overall, part of $28 billion specifically includes removal of $1.7 billion from the Centers for Disease Control and Prevention (CDC) and $13.4 billion from the Department of Health and Human Services (DHHS), including $10.4 billion from public health and social services emergency funds.

Washington DC Capitol dome detail with waving american flag

So, what does this mean for the healthcare workforce? It means healthcare organizations will need to continue to optimize their current and future workforce plans, without additional funding that could provide some relief.

At Health Management Associates (HMA), our healthcare workforce experts have not only partnered with health system leaders to identify real-world solutions, we have directly experienced the same challenges, because our team includes physicians, nurses, advanced practice providers, and former health system operations and financial executives who share the same lived experiences.

HMA offers a number of workforce solutions to healthcare communities across the spectrum. We cannot fill all your staffing gaps tomorrow, however, we can give you an innovative, model-of-care plan designed to lower costs, increase revenue, and position organizations for long-term financial success and operational sustainability.

With HMA’s Delivery System Optimization Team, organizations will benefit from:

  • An experienced team of health system leaders, bedside clinicians, and workforce subject matter experts with real-world experience and modern health care delivery solutions
  • A thorough quantitative and qualitative assessment including:
    • Workforce capacity, needs, and gap analysis.
    • Leadership and governance structure evaluation.
    • Key regulatory and policy gap analysis.
    • Compensation and benefits review.
    • Clinical and/or non-clinical workflow evaluation.
    • Provider billing practices and quality metric capture.
    • Provider and staff utilization analysis.

What organizations receive is:

  • A customized, comprehensive phased implementation plan that:
    • Improves cash flow and maximizes revenue.
    • Reduces turnover, increases retention, and improves health system culture.
    • Optimizes the ‘Model of Care’ delivery while still maintaining quality and safety.
    • Provides solutions for long-term financial success and operational sustainability.
    • Offers on-going executive and leader coaching services to help provide support through the change management process.

Today’s healthcare workforce challenges are unwavering, especially given the recent passage of the “debt ceiling” bill. From significant workforce shortages, to rising costs and competition, to decreasing employee engagement and burnout, today’s health systems face tremendous challenges. But by understanding workforce and health system needs and identifying gaps and inefficiencies, employers can fully utilize the employees they have to their highest potential and deliver care more effectively and efficiently.  Here at HMA, our delivery system optimization team can help health care communities struggling with workforce challenges do just that.

Contact our healthcare delivery system experts, who can partner with your organization to design a custom workforce solution for you.

  • Roxane Townsend MD, Managing Director, Delivery Systems
  • Melinda Estep, Managing Director, Delivery Systems
  • Jennifer M. Orozco, DMSc, PA-C, DFAAPA, Principal, Delivery Systems