How Home Health Care Industry Is Dealing with Labor Shortage, Workplace Challenges

September 22, 2022

Labor shortages today exist across all industry sectors, further exacerbated by the pandemic when many individuals reevaluated their careers and made significant life changes. Home health care agencies, already facing staffing challenges, were particularly hard-hit by the pandemic as many workers left the industry. Patients feared becoming infected with the virus and refused to allow individuals, including caregivers, into their homes. As a result, workers were not getting a sufficient number of hours to maintain their livelihood and looked elsewhere for job opportunities.

In addition, some older workers and others with underlying conditions that made them more susceptible to hospitalization if exposed to COVID-19 chose to leave the field or retire. The closing of schools and centers for childcare also placed another burden on the home care workforce. 

Home health care agencies addressed some of the challenges posed by the pandemic, according to a report by the Department of Health and Human Services (HHS), by revising their policies and practices, as well as taking advantage of changes in federal and state policies and regulations. For example, the ability to train staff virtually or delay certain pre-employment requirements helped ease entry into the home health care field or retain workers who were due for training or updates to other employment qualifications. 

Agencies offered flexible scheduling to help accommodate staff with things like childcare needs or second jobs.

According to the HHS, one policy change that was repeatedly cited as beneficial to agencies was the authorization of non-physician practitioners, such as nurse practitioners or physician assistants, to certify clients for services. This made it easier for agencies to accept new clients while also saving staff time by removing the need to find physicians. Many organizations also took advantage of expanded telehealth opportunities.

Challenges Persist

Pre-pandemic challenges regarding hiring and retention issues remain a focus for home health care agencies. A recent survey of home health care providers conducted by care technology company AlayaCare and Home Health Care News shows that 47% of respondents believe that pay and benefits continue to be the main reason behind staff turnover. In addition, 13% of respondents believe that lack of hours or inconsistent hours are the number-one cause of employee turnover, with 10% pointing to demanding physical work as the reason.

Stepping Up the Recruiting and Retention Game

To address the workplace challenges home health care agencies face, they are stepping up their recruitment strategies and increasing compensation. According to a poll, 61 percent of respondents state that recruitment has increased at their organization. Meanwhile, 58 percent said wages went up at their organization. These included agencies offering signing and last-minute shift bonuses and hazard pay. Some agencies are also offering a mentorship/leadership program and employment discount programs.

In addition, agencies are looking at how they can better address what candidates want beyond more pay and benefits. This includes providing workers with enough and a consistent number of hours and offering a short commute/travel time to and from patients. 

Providing a safe work environment at patients’ homes is also important to home health care workers when evaluating a potential employer. 

Inflation: Beyond the Labor Shortage

The survey also asked home health care providers how they were managing today’s high inflationary environment. Investment in automation to improve workflow efficiencies was among the top responses, including automating paper processes and invoicing. 

About Manchester Specialty

We specialize in providing agents and brokers with totally integrated business insurance solutions to meet the needs of Home Care, Allied Health, Medical Staffing and Human/Social Services organizations. For more information about how our products and services can help protect your insureds and how we recognize accredited firms, please contact us at 855.972.9399.