Is Healthcare Recession-Proof?

The Great Recession from December 2007 until June 2009 was one of the most severe economic downturns in the history of the United States since the Great Depression. According to the Current Population Survey (CPS), total employment dropped by 8.6 million, or almost 6 percent of the population, leaving over 15 million people unemployed. That was indeed a scary time. Mass layoffs at big companies like Amazon, Google, and Salesforce are bringing back memories of that time. Is another recession imminent? And if it is a recession, is your job secure? Is the industry you work in resilient enough to combat recession and come out with a sense of triumph? If not, which sector is secure? Can healthcare be it? Is healthcare recession-proof? Read on below for answers to all your questions. 

Understanding Recession and Healthcare

To say that there are recession-proof industries would not be true. Economic downturns certainly affect some sectors more than others, but it affects all of them at some level. For instance, industries that impact the quality of life usually fare better. These include utilities, consumer services, education, and government. If you consider this principle, healthcare is not far behind.

People need medical care, whether the economy is booming or declining. The reliance they have on healthcare reduces the likelihood of cutbacks in spending. 

However, when the economy is taking a downward turn, job layoffs and a higher unemployment rate are expected side effects. Many people lose employer-sponsored health insurance. This makes access to healthcare limited for the unemployed. Consequently, people go without healthcare simply because they cannot afford it.

The recession’s impact on healthcare will be undeniable. As it is an essential service, not everyone can forgo it, despite the economic conditions. That is why the need for skilled healthcare workers will almost never wane.

Let’s Look at Historical Trends of Recession’s Impact on Healthcare 

From 2001 to 2014, healthcare employment increased by 31.6 percent. That accounts for 3.5 million jobs. If we compare this number to total nonfarm employment growth, it is almost sixfold. The total nonfarm payrolls only grew by 5.7 percent during this same period. The image below will give you a better picture of healthcare employment in comparison with total employment. 

Source: Bureau of Labor Statistics

What about the present growth? 

The BLS projects overall employment in healthcare occupations to grow 13 percent from 2021 to 2031. This is faster than the average growth for all occupations. The BLS expects about 2 million new jobs over the next decade. 

The Role of Medicaid in Strengthening Healthcare During Downturns

Medicaid guarantees access to affordable healthcare services for millions of Americans, including those who may have lost their employer-based health insurance during a recession. For the patients, it provides a safe haven. People will not have to delay or forgo necessary medical care due to financial constraints.

What does this mean for healthcare providers?

Medicaid provides a stable source of revenue for healthcare providers, which can help mitigate the financial impact of a recession. Since Medicaid is a federal and state program, economic fluctuations do not affect reimbursements. Hospitals and medical practices will continue to have a reliable source of income. 

Medicaid has fortified the healthcare sector's immunity to economic downturns substantially more so than other sectors. So, is healthcare recession-proof? We would not say completely, but it certainly is close to it.

Have We Convinced You to Become a Part of the Resilient Healthcare Sector?

If yes, the options to join the healthcare industry are truly endless. At TN Professional Training Institute, we provide you the training to become a contributing member of the healthcare sector in weeks instead of months and years. We specialize in 5 different certifications you can choose from that also come with externships. 

• Registered Dental Assisting 

We train you to become knowledgeable Registered Dental Assistants who can work in modern dental offices. Our course also covers X-ray certification and Basic Life Support CPR certification. Once you complete your certificate, TN Professional Training Institute will help you with the licensing process to kickstart your career.

• Medical Assisting 

Our Clinical Medical Office Assistant program provides you the training to become an employable Medical Assistant in Tennessee. Designed to meet state standards, we keep the classes small. Our experienced instructors teach you both administrative and clinical tasks that will cover medical office procedures as well as patient care procedures. 

• Online Medical Billing and Coding 

The course helps you understand the functions of the role in the real world. You become acquainted with the skills, medical terminology, and insurance and medical billing terminology to enable you to work effectively in the field and engage in the intellectual work of the discipline.

• Phlebotomy 

We provide you with the knowledge and skills in all aspects of blood collection, including performing venipunctures safely. Our course covers medical terminology, relevant anatomy, and physiology that fall under the phlebotomist's scope of practice.

• EKG Technician 

Our EKG program trains you to conduct and interpret electrocardiograms (EKGs). You will learn about the heart's anatomy and physiology as well as the EKG machine's technology. Upon completing our program successfully, you will be ready to work as an EKG technician.

Why Choose TNPTI to Kickstart Your Healthcare Career?

We understand that you have responsibilities and obligations, which is why all our courses have flexible schedules. You can enroll in our classes during the weekends, evenings, or just one day a week. With multiple schedules for all our courses, we give you the opportunity to start your healthcare journey at your own pace.

We also offer financing options to make it easier for you to get the education you need. Our team will help you with our payment plans and tuition assistance to get you started. We are just a phone call away. Call us at (615) 631-8440 or visit our website.