6 forces reshaping the healthcare workforce

In its 2026 Health Care Work Force Scan, the American Hospital Association (AHA) highlighted six pressures that will likely define hospitals and health systems' workforce strategies over the coming years. 

1. Financial stress will limit flexibility

Rising labor and supply costs, inflation, and high interest rates continue to pressure healthcare organizations financially and will push them to focus on increasing efficiency whenever possible.

2. Demographic shifts will increase demand

As the U.S. population ages, there is an accelerating demand for long-term, post-acute, and home-based care. However, the current healthcare workforce is already being stretched thin and may not be able to keep up with the growing demand for care.

3. Technology is rapidly evolving

Telehealth, digital tools, and AI-enabled workflows are becoming more commonplace in hospitals and ambulatory settings. Although these technologies offer new opportunities, they also require new training, governance, and change management strategies.

4. Workers' expectations are shifting

Clinicians and staff expect to have flexibility, growth opportunities, meaningful work, and a culture that supports their well-being. Organizations that do not meet these needs will risk losing talent to competitors that adapt more quickly.

5. There is an urgent need for new worker pipelines

Traditional workforces are no longer enough to meet future demand. Currently, hospitals are investing in career ladders, apprenticeships, community partnerships, and other strategies to increase access to healthcare careers.

6. Geographic disparities will threaten access to care

Rural and underserved communities will see the greatest shortages of clinicians and other healthcare workers. Flexible staffing, virtual models, and local workforce development will be critical to preventing further inequities. 

"The day of the 1.0 FTE is gone," Stephens said. "What you need is a more flexible workforce that you can scale up and down based on volumes, but give them the flexibility to work as much as they want. […] Yes, you used to come to work every day; you did that for a long time and had a wonderful career, but some of the people coming into the workforce now only want to work a 3.5, a 0.7, whatever, and we've got to figure out how to adapt our program levels."

However, hospitals and health systems need more than just operational flexibility. Stephens and other experts highlight a need for a complete redesign of the workforce structure, including policies, benefits, and roles.

"The convergence of demographic change, STEM scarcity, generational turnover and rapid technological evolution requires a response beyond traditional workforce planning," said Sally Paull, EVP of HR at Regeneron Pharmaceuticals. "Adjusting headcount or updating competencies will not be enough."

To meet the evolving needs of their employees, many healthcare organizations are adopting new staffing models, including alternate career pathways, cross-training programs, remote or hybrid clinical roles, and mobile workforce pools. Some organizations are also partnering with schools and training organizations to build localized pipelines and expand access to essential roles. 

"Without engagement, you're going to lose your workforce," Stephens said. "So all of those variables that now you can focus on for retention and engagement, and not have to spend your time on the data and the monotonous sort of day-to-day things that AI can really come in and help you do."

Sherilynn Quist, senior director of margin transformation at Optum Advisory*, emphasized the importance of involving frontline staff in new workforce initiatives. "One of the biggest shifts we're seeing is health systems engaging frontline staff to help solve workforce and operational challenges," she said. "By empowering teams to identify inefficiencies, reduce waste, and redesign how work gets done, organizations are creating more sustainable ways to deliver care."

For example, at a pediatric summit Quist recently attended, a hospital leader spoke about how her respiratory team gathered as a group to figure out how to get rid of waste in their work processes so they could avoid hiring two new FTEs. "The fact that she got them involved in the front-end process is what made it successful," Quist said.

Overall, "[t]he path forward will require collaboration, creativity and long-term thinking, but the direction is unmistakable: a workforce built not just to survive the pressures of healthcare, but to transform it," AHA wrote.

*Advisory Board is a subsidiary of Optum. All Advisory Board research, expert perspectives, and recommendations remain independent.