Many factors, both external and internal, came together to create the downsizing of our country’s health care industry. The most significant external factor was the 1980s recession. The recession caused a great loss of jobs in the health care industry. The recession also caused a loss of government regulations that made health care more expensive. Internal factors also contributed to the downsizing of the industry. The large number of nurses retiring left a large number of jobs to be created.
There was a time during the 1980s when the number of nurses who retired from the health care industry in the United States was in the tens and hundreds. The health care industry was in the midst of a huge boom, but it was also facing great uncertainty in the 1980s. The recession and the loss of government regulation caused a number of these nurses to retire at a time when job opportunities in the health care field were at their lowest.
This was a time when many nurses were going to retire, but the process to actually retire, from the nursing school to the time when the nurse’s license expired, was very uncertain, and many nurses were going to stay on working in the health care field and wait for retirement.
This is sort of a chicken-and-egg situation. At the same time, many health care workers were going to retire. The problem was that many of the nurses who were going to retire would have to stay on working if they wanted to have their benefits, so to speak. If they stayed in the health care field, they would have fewer benefits and fewer salaries.
This is a little different from the way hospitals have been in the past. In those past times, a hospital’s hospital bed was a large, expensive, highly specialized piece of equipment. Now a hospital bed is a simple, cheap piece of equipment. When you go into a hospital, you sign in and you go to your doctor’s office. The doctor’s office is a very small, very cheap room.
One common response to the downsizing in health care industry that I hear from professionals is, “Oh, my goodness, you don’t have to work in the hospital anymore.” The hospitals were not so different. But in the 1980s, the people who held the job of hospital administrator had little choice but to go into the hospital business. When they did, they would have to give up their medical career, their good paychecks, and their personal freedom.
The typical response to downsizing seems to be that the cost of training the new generation of doctors is too much and the young people need to take on a more traditional career path. This is a common theme among managers when they see medical personnel making the move to the hospital.
But what if, instead of simply giving up their medical career, the new generation of health administrators were given a choice of going into the hospital business or leaving the hospital business. That is, if they wanted to stay in health care but not work in the hospital business. The hospital business would pay their salaries and provide a stable income for their family. They would not have to give up their medical careers for the sake of their families.
A study by the Center for Medicare & Medicaid Services found that about two decades ago, the average hospital director was making about $80,000 a year. Today, those leaders make up to $150,000 a year. Most of the new directors in the hospital business are making over $100,000 a year. So the choice to make money in the hospital business is becoming more obvious. This trend has been accelerated by the downsizing of the hospital administration.
In the 1980s, hospitals were starting to try and save money. They were trying to reduce the size of the organization as well as reduce the number of doctors. The downsizing of the medical school was also a big part of the trend. In the late 1970s, medical schools were becoming more and more competitive. In the 1980s, the medical schools were competing in their respective fields to make money. Now, medical schools are competing to make money in the hospital business.