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Why Are There Shortages in Healthcare and How Do We Fix Them? There will be a shortage of 21,000 - 55,000 primary care physicians by 2033. Additionally, there are 195,000 vacancies for nursing positions in America every year because of the nursing shortage. Shortages in healthcare are determined by the Law of Supply and Demand. In a normal market situation, supply and demand reach an equilibrium price and an equilibrium quantity. As a result, there is NO Shortage. However, if the price is set artificially low, then not enough will be supplied relative to demand and there will be a shortage. In the case of labor, the 'price' of labor is the wage. The 'quantity of labor' is the number of people and the number of hours worked in that profession. If there is a shortage, by definition there must be Rationing. Rationing comes in two forms: 1) Queue Rationing, i.e. a 'Waiting List' 2) Price Rationing, i.e. rationing based on ability to pay Healthcare has both forms of rationing, ranging from trauma surgery weekend coverage (Queue Rationing) to Lasik eye surgery (Price Rationing). Both forms have their Pros and Cons, which can be debated forever. The point is not which is 'better' or 'worse,' but rather that shortages in healthcare are 1) explainable, 2) have straightforward consequences and 3) can be addressed differently in different situations by different groups of people. There is no 'One Solution' and that's ok. Sources: https://www.health.harvard.edu/blog/w... https://www.nursingworld.org/practice... https://lpeproject.org/blog/the-econo... https://www.forbes.com/sites/johngood... AHealthcareZ is 400+ Healthcare Finance Educational Videos. 💥 BOOK: Check out Dr. Bricker’s Book 16 Lessons in the Business of Healing here: https://www.ahealthcarez.com/healthca... AHealthcareZ Viewers Include: Employee Benefits Professionals, HR, CFOs, Insurance Brokers, Benefits Consultants, Doctors and Nurses in Leadership Roles, Hospital and Health System Administrators, Health Insurance Carrier and PBM Professionals, Pharma and Med Device Professionals, Academic Professors and Students in Healthcare Administration and Public Health. 90,000+ Views Per Month Across All Platforms. Visit AHealthcareZ.com to Subscribe to the Healthcare Finance Video Newsletter.