Healthcare Worker Shortages and the Impact on Malpractice Risk
The U.S. healthcare system is, and has been, contending with a consistent and worsening healthcare worker shortage and nearly every corner of the medical industry is feeling the strain. According to the Association of American Medical Colleges, the U.S. could face a shortage of up to 124,000 physicians by 2034. This figure isn’t just alarming; it also signals a less-discussed consequence: increased malpractice risk. Understaffed facilities, overworked providers, and increased reliance on temporary or less-experienced staff can significantly increase the chance of errors and poor outcomes. As we know, these are prime opportunities for malpractice claims.
How does the healthcare worker shortage translate into a higher risk of litigation, and what can healthcare facilities and providers do to protect themselves?
Staffing and Malpractice
Healthcare is a team effort. When any part of the team is stretched too thin, mistakes happen. Inadequate staffing contributes to malpractice risk in several key ways:
1. Increased Workload and Burnout
Understaffing forces existing personnel to take on heavier workloads, longer hours, and more overtime shifts. Fatigue and burnout have been shown to impair clinical judgment, decrease attention to detail, and reduce empathy, all of which can lead to critical errors. When a nurse misses a dosage or a physician overlooks a diagnosis, the consequences can be severe for both patient and provider.
2. Greater Use of Temporary or Inexperienced Staff
To fill gaps, many facilities turn to locum tenens or newly graduated providers. While these professionals are often highly skilled, they may not be familiar with the specific workflows or culture of a new environment, increasing the chance of miscommunication or procedural errors.
3. Reduced Time per Patient
With fewer hands available, providers often have to rush through patient visits. This can lead to missed symptoms, delayed diagnoses, or incomplete documentation, which are all common catalysts for malpractice lawsuits.
4. Lower Morale and Higher Turnover
A revolving door of staff makes continuity of care difficult. It also means constant training and retraining, which can create confusion, inefficiency, and further errors.
The bottom line: staffing and malpractice are directly connected. Inadequate staffing increases risk, and risk increases liability. Facilities and providers must take proactive steps to address this growing issue.
What Providers Can Do to Improve Malpractice Risk Management
Addressing the malpractice risks associated with the healthcare worker shortage requires a comprehensive approach that touches operations, staffing, and insurance. Here are several strategies healthcare professionals and organizations should consider:
1. Implement Smarter Staffing Solutions
Invest in data-driven staffing tools that match patient volume with appropriate staffing levels. Consider flexible scheduling, float pools, or cross-training (within the scope of licensure) to help maintain coverage during peak periods. Collaborate with staffing agencies that specialize in healthcare to ensure that temporary staff are vetted and properly credentialed.
2. Invest in Retention and Wellness Programs
Facilities can mitigate errors related to provider burnout by supporting their workforce. Consider mental health resources, adequate rest periods, and retention incentives. High morale can improve patient outcomes, while reducing turnover and litigation risk.
3. Standardize Protocols and Improve Communication
Use evidence-based protocols and checklists to minimize variance in care. Encourage a culture of open communication where staff feel empowered to speak up about safety concerns.
4. Prioritize Continuous Training
Ensure all staff, including temporary and part-time workers, receive comprehensive onboarding and ongoing education. Simulations and scenario-based training can help improve decision-making in high-pressure situations.
5. Work with Your Broker to Reassess Your Malpractice Insurance Coverage
As risk increases, so does the need for robust malpractice risk management. Providers or group administrators should work with a broker to review their policies. As your broker, L&J will work to ensure adequate limits, tail coverage, and protection against emerging risks like telehealth errors or vicarious liability.
How Insurance Can Help You Navigate Staffing-Related Malpractice Risks
Medical malpractice insurance is a critical component of any provider’s risk management strategy, especially during periods of systemic stress like a workforce shortage.
Here’s how insurance coverage can help mitigate the impact:
Defense Against Claims: Even unfounded claims require a legal defense, which can be expensive and time-consuming. A good malpractice policy ensures that legal and financial protection is in place.
Coverage for Vicarious Liability: If you supervise or delegate tasks to others (such as a nurse, PA, or locum tenens provider) with their own coverage, you could be held liable for their mistakes. Make sure your policy accounts for this.
Support for Risk Management Programs: Many carriers offer tools, self-assessments, training, and consulting services to help you reduce exposure proactively. Take advantage of these resources to build a safer practice and, potentially, earn discounts on your med mal premium.
Tailored Coverage for Different Provider Types: Whether you're a dentist managing a private clinic or a midwife practicing in a hospital setting, your risks differ, and so should your policy. Work with a broker who understands these nuances and can match you with the right coverage.
Need Help Navigating Malpractice Risk in an Understaffed Environment?
Effective staffing models, strong leadership, and the right insurance coverage form the foundation of a safer, more sustainable healthcare system. While there is no overnight fix for the healthcare worker shortage, healthcare providers can take meaningful steps now to protect their patients, their reputations, and their practices. Our team specializes in helping healthcare providers across all disciplines find the right insurance solutions to match their unique risk profiles. Contact us today for a personalized consultation and see how the right strategy can make all the difference.