From labor to laundry, supply chain issues are impacting the healthcare industry

Like so many consumers, I’m repeatedly amazed at what I can’t find in the grocery store or at my favorite salad place. Who could have predicted there’d be regular interruptions in the supply of edamame, but not of broccoli?

The healthcare industry, which accounts for nearly 20% of the U.S. economy, has not escaped these supply chain challenges. There are a host of issues that benefit brokers and advisers need to be more mindful of when helping employer clients navigate an increasingly rocky terrain.

We’re up against some of the same problems faced by other industries, including insufficient labor to load or offload trucks carrying medical supplies and devices, as well as just regular supplies. But that’s just for starters. There also aren’t enough truck drivers to deliver everything, and general labor shortages.

This delays the arrival of supplies and equipment, from knee braces and crutches to diapers and hearing aids. Add to the mix some unique issues of our own — we’re too reliant on historical data and non-digital records — and a perfect storm is brewing.

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First, let’s tackle the workforce shortage. According to Nurse Journal, several factors are behind this phenomenon. They include rising demand to care for an aging population, older nurses approaching retirement and a high turnover rate. The situation with physicians is not dissimilar. Consider, for instance, how shifts in the patient population means a larger number of geriatric patients. Plus, 52% of the active physician workforce is 55 or older, which means a mass exodus is expected due to retirement. Other noteworthy factors? Shortages at rural hospitals, and churn and burnout. Limits on medical schools and residency programs and shortages of trained nurse educators and faculty are compounding these issues.

But the labor shortage seeps into other, unexpected areas of our healthcare system, too.

Take laundry, for instance. A commercial laundry facility in Texas has contracts with several hospital systems. Typically, they run three shifts. But now, they’re struggling to staff their third shift, and without the minimum required staff, they’re forced to shut down. The result is greater pressure on the other two shifts to finish the work in time, or not get the laundry delivered — which holds up open beds at the hospital.

That’s a serious problem, but there are far bigger issues we’re facing, primarily a dwindling national blood supply.

Many people think blood is just for accident victims. It’s not. Cancer and blood disorder patients use approximately 25% of all blood products, according to the American Red Cross.

It’s also worth noting that women in labor can unexpectedly hemorrhage and require significant volumes of blood. In San Antonio, one woman needed several hundred units. She survived, thankfully, but right now, that blood may not be available if another woman was in need. And that’s a nationwide situation.

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Over the course of the pandemic, there was a 60% drop in donors aged 16-19 and 30% drop in first-time donors. Blood drives were canceled by employers and schools alike. Donation facilities had to be revamped to accommodate new safety protocols. Blood-drive buses were suddenly unusable. And all this time, cancer patients still needed blood to support their immune systems so they could continue with chemotherapy. Babies were still born. Accidents still happened.

Combine supply chain issues with an industry that has yet to leverage technology, throw in a labor shortage and depletion in the nation’s blood supply, and you’ve got yourself a troubled path forward.

As producers in this industry, our role as solution providers is limited when so much is out of our control. Be careful out there — and thank a healthcare provider whenever the opportunity arises. If you’re able, also please consider donating blood in your local community. If you’re not sure where to go, click here.