Margin pressures among U.S. healthcare and pharmaceutical companies are at risk with renewed labor challenges and supply chain issues.
Healthcare companies are facing higher costs and potentially lost revenue as a result of these disruptions, according to a recent report from Fitch Ratings. However, healthcare companies are unlikely to suffer in the markets due to a temporary decline in profitability at the end of 2021.
Healthcare providers have been facing a shortage of workers for several months, which is causing many to raise wages and leverage more temporary health, which can also cost more. At the same time, retaining workers is also more challenging due to the effects of burnout and high rates of turnover. In particular, senior housing, skilled nursing and some in-patient behavioral health operators have reported a shortage of workers. Without sufficient staff, providers can’t admit as many patients and operate at full capacity.
