Workforce development programs get a boost

Currently, many health systems are struggling with workforce issues, with certain positions like respiratory therapists, medical assistants, and pharmacy technicians chronically understaffed. According to Todd Walrath, founder and CEO of healthcare staffing company ShiftMed, healthcare providers have relied more heavily on staffing agencies to fill some of these roles over the last year, with requests increasing by around 50%.

As a result, many organizations have focused on expanding their workforce development programs to help with recruitment and retention.

For example, Benefis Health System recently launched a new internal apprenticeship program to help staff gain new skills and move into clinical roles. One participant in the program is a food service technician who is studying to become a radiology technician. Apprentices can access Benefis' tuition reimbursement assistance if they commit to working at the health system for at least a year after graduating.

"If we can't fill those positions, we end up relying on agency staff or using higher-cost labor resources like registered nurses," said Casey Buckingham, Benefis' chief HR officer.

Similarly, Penn State Health has expanded its tuition assistance and workforce development programs. One of these programs is the Grow Career Pathways initiative, which is designed to help employees advance into critical clinical roles like cardiac sonography, licensed practical nursing, medical laboratory technology, respiratory therapy, and radiology and surgical technicians. 

Some health systems are also turning to AI to help with their staffing efforts. At Tanner Health, leaders are using AI-backed technology to screen staff to see where an employee could be a good fit within the system. This screening program has led to fewer roles being outsourced, according to Jill Anelli, Tanner's chief HR officer.

Health systems partner with schools for training, recruitment

Health systems are also partnering with schools to build a pipeline of clinical talent. According to health system leaders, upcoming caps on clinician student loans, as well as reductions in federal Medicaid funding, are pushing them to act quickly with these partnerships.

For more than two years, Care New England has partnered with area schools to recruit and train pharmacy technicians. Separately, Hartford HealthCare has grown its number of partnerships with colleges and universities.

Commentary

According to Iman Abuzeid, co-founder and CEO of staffing company Incredible Health, increasing training and educational pathways is becoming a necessity for health systems as they work to staff difficult areas.

"[Employers] don't have a choice, because another employer will offer those training programs, and then you won't have any staff," Abuzeid said.

Separately, Allyson Paiewonsky, a research consultant at Advisory Board, highlighted how health systems' perspective on labor has changed over the last several years, particularly as they face more challenging workforce issues.

"Health systems' growing investment in internal talent pipelines signals a deeper shift in how they view labor — not just as a cost to manage, but as a lever for improving margin performance," Paiewonsky said. "Rather than continuing to absorb rising labor costs, organizations are rethinking how labor is sourced, developed, and retained. The goal isn't just to fill today's vacancies, but to build a more predictable pipeline aligned to long-term workforce needs."

"This is a pattern we're seeing more consistently among higher-margin systems. These organizations are more willing to make upfront investments that reduce long-term reliance on expensive labor sources, even if the financial return isn't immediate," she added. "In doing so, they break away from reacting to shortages with costly short-term fixes and instead gain more control over both staffing and costs over time."

Sherrilyn Quist, senior director of margin transformation at Optum Advisory*, also noted that just having workforce development programs or partnerships isn't enough for health systems to be successful. They also need to track their progress to ensure they are benefiting from their workforce investments. 

"The differentiator isn’t whether a system has workforce development programs — it’s whether they are engineered for return," Quist said. "High-performing organizations tightly align these programs to hard-to-fill roles and track ROI rigorously. Others are deploying them more broadly without clear targets, which can dilute impact and add cost in an already constrained environment."

“Talent pipeline programs can reduce long-term labor costs, but only if they’re built with clear targets and measured like any other capital investment," Quist said. "Without that, they risk becoming another well-intentioned expense."

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