From Burnout to Better Outcomes: Addressing the Healthcare Workforce Shortage

Hospitals across the country are confronting a workforce crisis that is both systemic and accelerating. An aging population, rising rates of chronic illness, and reduced access to primary care are driving unprecedented demand. Unfortunately, provider burnout, staffing shortages, and escalating costs are converging—threatening both care quality and hospital margins.

With CMS’ Transforming Episode Accountability Model (TEAM) mandate approaching, the need for a solution has never been clearer.

More Patients, Fewer Providers

By 2030, all Baby Boomers will be age 65 or older, accounting for 1 in 5 Americans. This demographic shift means hospitals will be caring for more patients with complex, poly-chronic conditions.

However, workforce supply is moving in the opposite direction. The American Hospital Association expects a shortage of 100,000 critical workers by 2028, with only 13 states projected to meet demand for nurse assistants. Nursing shortages will also be significant, with shortfalls of nearly 208,000 RNs and more than 302,000 LPNs by 2030 according to the National Center for Health Workforce Analysis.

Rural areas will be hit hardest. Nearly 3 million Americans live already in regions lacking both healthcare and reliable high-speed internet, making even virtual access difficult. For these communities, shortages translate directly into care deserts, widening disparities in access and outcomes.

Burnout Fuels The Flames

Burnout is accelerating attrition across nearly every role in healthcare. According to a study in the Journal of General Internal Medicine, nearly half of physicians report experiencing burnout, and 1 in 5 have experienced depression. Nurses are especially vulnerable—56% report burnout, and 41% say they plan to leave their jobs within two years.

Work overload triples the risk of burnout and significantly raises the likelihood of leaving a role. Burnout reduces productivity, increases errors, and drives higher turnover, all of which raise costs. It also affects the patient experience: when staff are overextended, care quality and consistency suffer.

Why More Hiring Won’t Fix It

When conversations about the workforce shortage come up, the default solution is often “hire more staff.” But the reality is more complex.

Even if every possible supply-side intervention were put in place (better training pipelines, stronger retention programs, and expanded support) McKinsey estimates that would only add about 5.6 million healthcare workers worldwide by 2030. That won’t be enough to fill the projected 10 million global staffing gap. As McKinsey notes, “Closing it will require transforming healthcare service delivery—reimagining who provides healthcare, how services are delivered, and where care is accessed.”

This reimagining is especially urgent in rural communities. The number one strategy the Rural Health Information Hub lists for optimizing care in rural areas is “Using interprofessional teams to provide coordinated and efficient care for patients and to extend the reach of each provider.”

Extending Capacity Without Adding Staff

Deacon Health’s People + Technology care model minimizes the impact of workforce shortages on hospitals, clinicians, and patients.

Workforce shortages often create a double bind: hospitals are forced to overextend existing staff or rely on costly contract labor to fill gaps. Both approaches are financially draining and operationally unsustainable. Limited staff also fragments patient care and reduces access.

Deacon offers a better alternative:

• 24/7 Care Coordinators extend reach: Supporting patients after discharge to reduce readmissions and avoid unnecessary emergency room visits.
• AI-powered technology streamlines workflows: Reducing administrative burden and providing deep insights so clinicians can focus on delivering higher-quality care.
• Supports retention: By easing staff workload, Deacon helps lower burnout risk and turnover.

The result is greater hospital capacity, stronger patient outcomes, and a workforce that isn’t pushed to the breaking point.

TEAM: Turning Shortages Into Shared Savings

With CMS’s TEAM on the horizon, the stakes are even higher. Participating acute care hospitals will be responsible for the quality and cost of care for selected surgical procedures from the initial surgery through 30 days post-discharge for traditional Medicare beneficiaries. The goal is to promote value-based care by improving outcomes while reducing costs across high-volume surgical episodes.

For hospitals, TEAM is both a challenge and an opportunity. TEAM offers hospitals a chance to strengthen financial performance and deliver better care. Without the right support, though, it risks missed benchmarks, new costs, and lost revenue.

Deacon helps hospitals succeed under TEAM by:

• Capturing shared savings: Generating new revenue to offset costly labor contracts and other staffing-related expenses.
• Recouping losses: Improving outcomes and lowering unnecessary utilization to strengthen margins.
• Extending capacity: Ensuring hospitals have the resources to meet TEAM’s requirements without further overloading staff.

Even hospitals without acute staffing shortages will need support to fully realize TEAM’s potential. Deacon’s evidence-based approach helps hospitals capture revenue, protect their workforce, and turn TEAM into a sustainable advantage.

Now is the time to take action. Reach out to Deacon to learn how we can help.