This paper examines the argument for expanding the nurse practitioner (NP) workforce as a strategic response to the projected U.S. physician shortage. After reviewing recent economic data suggesting that U.S. healthcare spending growth has actually stabilized relative to inflation, the paper shifts focus to the anticipated shortfall of 91,500 physicians by 2020 following the Affordable Care Act's coverage expansion. Drawing on workforce statistics and salary comparisons, the paper argues that replacing primary care physicians with NPs — who provide equivalent care quality — could generate approximately $10 billion in annual labor cost savings and help close the provider gap.
There is no question that healthcare costs have been weighing heavily on policy makers, especially with an aging baby-boom generation and the passage of the Patient Protection and Affordable Care Act (ACA) of 2010. Total national spending on healthcare was estimated to have exceeded $2.8 trillion in 2012, representing 17.9% of the gross domestic product (GDP) (Turner and Hughes-Cromwick, 2013). Given its current trajectory, healthcare spending could reach $4.8 trillion by 2021 and consume nearly 20% of GDP (CMS, n.d.).
However, not everyone considers healthcare spending to be out of control. Rather than rely solely on percent GDP, Turner and Hughes-Cromwick (2013) looked at spending as a percent of potential GDP (PGDP). PGDP is considered a better long-term reference for economic trends because it minimizes fluctuations caused by short-term changes in inflation. Based on this comparison, U.S. healthcare spending is currently around 17.0% of PGDP, but more importantly, annual increases in healthcare spending reached all-time lows in 2009 and 2010. In fact, annual increases in healthcare spending declined from 10% to 4% between 2002 and 2008 and have since stabilized between 4% and 6%. These findings suggest that U.S. healthcare spending relative to the consumer price index (CPI) — an accepted measure of inflation — had stabilized by 2008 and has been only 1–3% above the CPI since (Inflation.eu, 2013).
Using out-of-control healthcare costs as an argument for increasing the role of nurse practitioners (NPs) may not be sufficiently convincing in light of the above findings. Another argument that has received significant attention is an increasing physician shortage (Bell, 2012). A recent policy recommendation by the Association of American Medical Colleges (AAMC, 2012) predicts that unless Congress enacts emergency legislation to remove the annual cap on residency training, the additional 300 positions funded under the ACA cannot meet the additional 10,000 needed to satisfy demand. With 32 million Americans suddenly becoming eligible for healthcare coverage under the ACA and an aging baby-boom generation, the doctor shortage is expected to reach 91,500 by 2020.
In 2010 there were approximately 106,000 NPs in the U.S., of which 52% were working in primary care (AHRQ, 2011). By comparison, there were approximately 560,000 primary care physicians (BLS, 2012a). Since numerous studies have found that NPs provide care quality equivalent to that of physicians (Newhouse et al., 2011), the looming physician gap could be moderated by an increase in the size of the NP workforce.
"Replacing physicians with NPs yields $10 billion in savings"
"NPs can fill physician gap with significant cost benefit"
You’re 46% through this paper. Sign up to read the remaining 2 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.