A shortage of healthcare workers persistently plagues the United States, with bleak projections for the future. And in a country where a former First Lady spoke glowingly of a government that does “everything for us,” some people instinctively react by demanding government intervention.
However, despite the appearances crafted by legislators, history often shows government meddling contributes to crises it tries to reverse. Central planning begets more complicated crises, which legislators then promise to “fix”— provided you elect them again. The cycle provides them endless employment.
The ideal government solution to lack of healthcare workers is not to meddle further. Adding to the 906 pages of Obamacare is not the way to fill the increased healthcare positions its drafters boasted of creating. The country already faces a predicted shortfall of 3.2 million healthcare employees in the next decade. And state governments can combat the problem—by extricating themselves to the greatest extent possible.
Easing Tax Burdens
From college to practice to retirement, state governments can offer tax breaks to people in the healthcare field. Unlike loan “forgiveness” programs and other tax-funded aid, tax deductions and nonrefundable tax credits do not forcibly take and redistribute other people’s money. They simply allow people to keep their own.
In 21 states, individuals and organizations can receive a scholarship tax credit (STC) for donating to a student’s education. In some states, healthcare workers committed to practicing in underserved areas get tax credits. Hospitals in these regions also sometimes get tax breaks, which frees up money to pay employees more. State governments have numerous options for using tax incentives to encourage the private market to fill healthcare worker gaps.
Removing Barriers To Foreign Entry
Healthcare licensing criteria is largely up to individual states. They can either streamline the process for professionals coming from other areas, or to add unnecessary obstacles. Some laws purportedly enforced to maintain quality are really the result of incumbent healthcare professionals trying to legislate foreign competition out of business.
State governments can encourage the entry of qualified healthcare workers trained outside the country. They can also facilitate reciprocity with other states via agreements such as the Interstate Medical Licensure Compact (IMLC). This compact is not enforced or controlled by any federal agency, instead encouraging “sovereign states” to allow physicians from other states to more easily become licensed locally.
Loosen Other Practice Restrictions
Geographical restrictions are far from the only method used by healthcare lobbyists to squeeze out competition. That means this area of law provides possibly the greatest room for out-of-the-box rethinking.
Out of necessity, telehealth gained popularity during the COVID-19 pandemic, and its expansion holds potential for attracting and retaining healthcare practitioners. Previously, overhead costs for facilities and commuting were accepted as the necessary price to operate, and not everyone found it to be worth the money and time. But recent history has proven this thinking outdated. Instead of following federal lead in letting telehealth waivers lapse as the pandemic subsides, states can make theirs permanent and even expand them.
States can also allow broader scope of practice for current medical professionals. Despite what some specialists claim, they are not always the only ones qualified to do their jobs. Again, laws that supposedly exist to prevent injury are sometimes really designed to prevent competition, and states wield much of the power in this area.
Getting Out Of The Way
No matter the intentions of those trying to legislate the healthcare system into functioning more efficiently, their best chance of success lies in allowing more freedom in the market. People will enter a field if it offers tax advantages. Facilities will hire when they must pay less. Practitioners from other places will open locally when they jump through fewer hoops. And patients will find services when their providers are allowed to utilize their full range of ability.
The federal government controls much of the healthcare system. But states can—and should—use all available tools in their kit to keep them from erecting barriers to entry for workers.