Healthcare systems across the U.S. are facing ongoing workforce shortages, particularly among nurses. This staffing gap among healthcare workers has significant implications for operational efficiency, patient care, and real estate decision-making. As healthcare institutions grapple with the challenges of retaining talent and maintaining quality care, real estate strategies must adapt accordingly to meet the evolving demands.
The Current Nursing Deficit
According to the Bureau of Labor Statistics, the U.S. healthcare system will need an estimated 193,100 registered nurses (RNs) each year through 2032 to account for retirements and workforce exits.
The ongoing shortfall of nursing staff is compounded by slow workforce growth in critical roles such as nursing assistants. For example, by 2028, Mercer predicts a nationwide deficit of over 73,000 nursing assistants.
States like New York, Texas, and California are expected to face shortages of over 11,000, 12,000, and 14,000 workers, respectively. This gap is expected to have a profound impact on patient care, increasing the burden on current staff, leading to longer wait times, and negatively affecting the quality of care.
Retaining and Attracting Talent in a Competitive Market
To mitigate the effects of the nursing shortage, healthcare providers are adopting several strategies to attract and retain talent, such as investing in professional development, providing opportunities for continuing education, and offering flexible work options to experienced nurses. Allowing for part-time and flexible roles can help reduce burnout and reliance on full-time staff.
Clinical partnerships between health systems and nursing programs are also helping to build a steady pipeline of new nurses entering the workforce. Additionally, there has been an increase in employers offering programs that support entry-level nurses to advance in their careers. For instance, many health systems are facilitating the transition of Licensed Practical Nurses (LPNs) to Registered Nurses (RNs) or Nurse Practitioners (NPs).
Impact of Staffing Shortages on Healthcare Real Estate
The nursing shortage also influences real estate decisions in healthcare, as providers must adjust their expansion strategies to align with workforce availability.
Some healthcare providers are delaying clinic expansions due to shortages of both nurses and physicians. In some cases, new facilities are being put on hold until sufficient staff can be recruited. A health system in southeastern Wisconsin, for example, has delayed opening several new clinics until the physician shortage is addressed.
To better serve communities, health systems are also shifting toward smaller clinics with more localized footprints. These smaller facilities are typically within 10 minutes of patients, catering to immediate community needs. Specialty care facilities, such as oncology or cardiology centers, are expanding but are typically located within a wider radius of 15 to 20 minutes from patients. This strategic expansion ensures that critical care services remain accessible, even as staffing constraints limit the ability to open new general clinics.
Additionally, as demand for telehealth and remote care increases, healthcare systems are investing in telehealth spaces and infrastructure. Through using the AI-powered workforce technology, Mercy Health system, for example, has improved efficiency through automation, reduced labor costs with dynamic incentive pricing, and cut down reliance on travel nurses by systemizing talent.
Looking Ahead
As healthcare institutions continue to face staffing shortages, they are adopting innovative solutions to retain and attract nursing talent, while also adjusting their real estate strategies to adapt to these challenges. Looking ahead, the healthcare industry will need to continue finding ways to balance workforce needs with real estate growth, ensuring that patients receive timely, high-quality care despite the ongoing shortage.