MHA CEO Report — Moving the Workforce Needle

MHA Rounds image of Brian Peters

“Luck is not chance, it’s toil; fortune’s expensive smile is earned.” — Emily Dickinson

The healthcare workforce has been one of the MHA’s strategic action priorities for the past several years. As we near completion of our 2023-2024 program year, I’m extremely pleased to see the results of the MHA’s second annual hospital workforce survey, which shows Michigan hospitals are making real progress in reducing staffing shortages. Michigan hospitals hired more than 61,000 employees in 2023, including 13,000 nurses. Overall job vacancies were reduced by 29%, while nursing vacancies dropped by 44%. These gains are seen across nearly all job categories and they’re significant, with double-digit decreases for many of them. I can tell you with certainty: our “luck” in this regard has been earned through extremely hard work.

Michigan hospitals still have 19,000 job openings, including 4,700 for nurses, so more work and investment needs to be done. However, the accomplishments of Michigan hospitals in this area shows the recruitment, retention and training tactics implemented throughout the state are working.

It starts with retaining the existing workforce, which leads to improved morale and reduced recruiting expenses. Michigan hospitals are outperforming hospitals across the country when it comes to registered nurse retention. Michigan’s turnover rate is 3.7 percentage points lower than the national average. Offering better pay, improved benefits, flexible scheduling and integration of technology to improve patient monitoring and reduce the administrative burden on nurses are examples of tactics implemented by Michigan hospitals that are making a difference.

Michigan remains an aging state, and as more people become eligible for Medicare, the demand for healthcare services will continue to grow. In response, our hospitals are very serious about expanding the talent pipeline and increasing awareness of hospital careers to students. Hospitals are expanding educational opportunities and partnerships with higher education institutions to attract more students to healthcare, including clinical positions like nursing. The MHA is assisting by leading the MI Hospital Careers public awareness campaign that targets students and professionals considering a career change to consider healthcare as a great option.

The MHA also recently published the latest results from the Economic Impact of Healthcare in Michigan report, which shows the important role hospitals have in Michigan’s workforce and economy. Healthcare remains Michigan’s largest employer of direct, private-sector jobs. Hospitals provide the largest percentage of healthcare jobs in the state, employing 217,000 full-and part-time employees. Not only are these good-paying, stable jobs, but many offer career pathways that allow employees to further develop their skills and move up the job ladder with additional certifications and/or degrees. Many of Michigan’s communities also depend on their local hospital as one of, if not their very largest, employer.

These results led our conversations last week while a team of MHA staff attended the Detroit Regional Chamber’s annual Mackinac Policy Conference, connecting with business, higher education and political leaders throughout Michigan. In addition to this public announcement, we also produced a palm card and video for event attendees to highlight our work. Our goal is to increase the awareness of the large role hospitals play in the economy and the success they’re having in welcoming new talent to their organizations.

Reducing job vacancies and staffing shortages is a marathon and not a sprint. The Michigan Legislature has played a large part in assisting hospitals, whether it be through direct worker funding or new policies, such as increased penalties for violence committed against healthcare workers or allowing community colleges to offer Bachelor of Science in Nursing degree programs in collaboration with a four-year institution. The MHA is proud to help lead many of these discussions with policymakers to find more ways to reduce barriers to healthcare careers.

Public policy, advocacy and communications are key – but we are using every tool in our toolbox to address our workforce challenges. The MHA Endorsed Business Partner (EBP) program promotes industry-leading firms, carefully vetted by the MHA, that can meet the most pressing needs of our member hospitals and health systems, and we just announced a new endorsement of AMN Healthcare as a national leader in workforce solutions. The MHA has endorsed several of AMN’s legacy brands, including Merritt Hawkins, a physician search division, for many years. As AMN brings its solutions under one brand, we proudly continue this partnership with AMN Healthcare. They are the largest workforce solutions company in the market, which allows them to serve clients more effectively across all levels of healthcare.

Economic development and workforce are not just a one-year strategy. This will continue to remain a priority for hospitals and health systems, and we’re encouraged that at this time next year, we will have a similar story to tell in the reduced number of healthcare vacancies in the state. Until then, please join us and encourage as many people as you can to consider a job in healthcare. Make no mistake: whether clinical or non-clinical, healthcare is hard work; but it truly is one of the most rewarding, mission-driven careers you can pursue.

As always, I welcome your thoughts.

Michigan Hospitals Fill 61,000 Jobs in 2023

Healthcare Remains the Largest
Private-Sector Employer in Michigan

The Michigan Health & Hospital Association (MHA) published results from their second annual Michigan hospital workforce survey that shows hospital recruitment, retention and training efforts in 2023 helped fill 61,000 total positions in 2023, reducing job vacancies by 29% to a total of 19,000 statewide. More than 13,000 nurses were hired during that time, decreasing the number of nursing vacancies by 44%. The survey includes responses from more than 95% of all Michigan acute-care inpatient hospitals.

Nearly all job categories in the survey experienced double-digit percentage decreases in vacancies year-over-year. Hospitals successfully reduced vacancies in the following job categories:

  • Nursing – 44% decrease
  • Operations – 43% decrease
  • Behavioral health – 42% decrease
  • Administration – 34% decrease
  • Clinical assistants – 28% decrease
  • Pharmacists – 26% decrease
  • Technicians – 25% decrease

Bar graph of decline in hospital job vacancy by category.

Amidst a national nursing shortage, the results show Michigan hospitals are outperforming national nurse retention rates. The registered nurse (RN) turnover rate for Michigan hospitals is 3.7 percentage points lower than the national average of 18.4%. Examples of how Michigan hospitals are retaining and recruiting nurses include offering better and faster pay, improved benefits and employee support, and expanding educational opportunities for students to consider a nursing career. State funding obtained through Public Act 9 of 2022 and Public Act 5 of 2023 contributed to these efforts and have directly benefitted at least 69,000 healthcare workers.

To complement the efforts of individual hospitals, the MHA launched the statewide MI Hospital Careers public awareness campaign in 2023 targeting students and professionals considering a career change to express the value of healthcare careers. The MHA also engaged in efforts that ultimately led to four-year Bachelor of Science in Nursing programs at community colleges, expansion of the Michigan Reconnect program to allow funds to support Michiganders accessing healthcare credentials for technician and nursing careers, and new state law that increases the penalties for individuals who commit acts of violence against healthcare workers.

Michigan hospitals remain focused on solutions that build the healthcare workforce that patients need now, and in the future, to fill the remaining 19,000 open hospital positions, including 4,700 in nursing.

These efforts will strengthen healthcare in Michigan, which remains the state’s largest employer of direct, private-sector jobs according to 2024 Economic Impact of Healthcare in Michigan data. More than one million jobs in Michigan were directly or indirectly related to or induced by healthcare in fiscal year 2022, the most recent data available. Hospitals collectively employ 217,000 full- and part-time employees, remaining one of the largest employers in many Michigan communities. In addition, direct healthcare workers in Michigan earned nearly $47 billion in wages, salaries and benefits.

“Retaining and growing the workforce is a top priority shared by hospitals throughout the state,” said Michigan Health & Hospital Association CEO Brian Peters. “We’re extremely encouraged by the data demonstrating the success of hospitals over the past year in increasing the talent pipeline to care for patients and strengthening the healthcare workforce. Hospitals provide Michigan communities with good jobs that help drive our state’s economy and keep residents healthy.”

The 19th edition of The Economic Impact of Healthcare in Michigan was compiled using IMPLAN® cloud software to quantify healthcare’s significant economic impact in the state. The data represents direct, indirect[1] and induced[2] healthcare jobs; taxes paid by those workers and their employers; and salaries, wages and benefits earned. The report is an online, interactive tool that allows users to examine these economic impacts from a statewide perspective and by region, county or congressional district. It is available at www.economicimpact.org.

[1] Indirect jobs are those created to support a larger employer or industry (for example, a laundry that cleans linens for a hospital).

[2] Induced jobs are those created by the spending of people who work in the indirect jobs (for example, a restaurant waiter who serves the laundry workers).

Healthcare Economic Impact Included in 2024 MBN Economic Forecast Breakfast

MHA CEO Brian Peters highlights the economic impact of healthcare in Michigan during the 2024 Economic Forecast Breakfast hosted by MBN.

The Michigan Business Network (MBN) hosted the 2024 Economic Forecast Breakfast Jan.11, which featured the inaugural release of the latest Michigan Future Business Index survey data, 2023 reviews and a look ahead on regional economic, business, healthcare, tourism and international business forecasts.

Given the healthcare sector significant role in Michigan’s economy, MHA CEO Brian Peters joined the Economic Forecast Breakfast as a presenter for the first time, highlighting the economic impact of healthcare in Michigan. Peters spoke about the mission and work of the MHA, including key strategic pillars in the 2023-2024 strategic action plan such as workforce support, hospital viability and behavioral health. Peters also discussed how working with hospitals and economic partners in the region contributes to growing the economy of Michigan. The MHA is an official partner with the MBN.

Other event presenters included Chris Holman, CEO of MBN; Mike Witt, senior vice president of Asset Management; Van Martin, president & CEO of Martin Commercial Properties; Julie Pingston, president & CEO of Choose Lansing; Steve Japinga, senior vice president of public affairs at the Lansing Regional Chamber of Commerce; Bob Trezise, president and CEO of the Lansing Economic Area Partnership; and Charles Ballard, emeritus faculty of Michigan State University Economic Department.

The MHA’s involvement in the event is an example of the association’s collaboration with economic leaders across the state of Michigan.

Members with questions about future regional economic events may contact Ruthanne Sudderth at the MHA.