Staffing Shortages + Benefits Breakdown: The Tipping Point in Post-Acute Care

by | May 1, 2025 | Staffing

The post-acute care (PAC) industry—spanning skilled nursing facilities (SNFs), inpatient rehab centers, home health, and long-term care providers—continues to face intensifying pressure from multiple sides. While regulatory changes and rising demand for services remain critical concerns, two interlinked challenges stand out in 2025: a deepening workforce shortage and the struggle to offer sustainable, competitive employee benefits.

Staffing Shortages: A Longstanding Issue, Now a Full-Blown Crisis

Even before the COVID-19 pandemic, the post-acute sector grappled with workforce volatility. But in the years since, the problem has escalated:

  • Nursing and caregiving roles remain among the hardest to fill across healthcare.
  • Many facilities are operating with significant understaffing, resulting in lower capacity and declining patient outcomes.
  • Burnout, low wages, and a lack of career mobility are pushing skilled workers out of the industry altogether.

According to the American Health Care Association (AHCA), nearly 60% of nursing homes are limiting admissions due to staff shortages, and close to 90% report difficulty hiring enough qualified workers.

Healthcare Benefits: A Key but Costly Retention Tool

Amid this staffing crisis, offering robust health benefits has become essential for recruiting and retaining top talent. But therein lies another challenge:

  • Rising healthcare costs are eating into already razor-thin margins.
  • Smaller, independently owned facilities struggle to provide competitive coverage compared to hospitals or health systems.
  • Many post-acute workers are part-time, per diem, or hourly, making traditional benefit models impractical or unaffordable.

This leads to a frustrating cycle: limited benefits reduce employee retention, which worsens staffing gaps, which then increases the burden on existing employees—fueling more turnover.

The Human Impact

Behind the numbers is a very real toll:

  • CNAs and nurses in post-acute settings often juggle multiple jobs just to afford healthcare.
  • Lack of access to affordable care leads to delayed treatment, higher absenteeism, and mental health strain.
  • Patients ultimately suffer as continuity of care breaks down and employee morale dwindles.

Rethinking Benefits: Time for Flexibility and Innovation

To break the cycle, leaders in the post-acute care space must explore alternative benefit strategies that offer value, flexibility, and support without adding unsustainable costs. Some ideas gaining traction include:

  • Voluntary benefits platforms like BenefitsMe.com, which allow employees to access purchasing assistance without credit checks or interest—at no cost to employers.
  • Part-time benefit access options, tailored to the unique schedules and income levels of post-acute workers.
  • Financial wellness programs and pay-on-demand services to reduce stress and reliance on payday loans.

Combined with better scheduling flexibility, leadership development, and mental health support, these tools can help build the kind of resilient, mission-driven workforce the industry desperately needs.

The Bottom Line: Care for the Caregivers

As the population ages and demand for post-acute services grows, the industry’s success will depend on how well it can support the caregivers behind the care. Staffing and benefits aren’t just operational issues—they’re strategic imperatives.

Now is the time for leaders to rethink how they attract, retain, and support frontline workers—before the system breaks under the weight of inaction.

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 Sources:

  1. American Health Care Association (AHCA) – “State of the Nursing Home Industry: 2024 Staffing Report”

This report outlines the severe staffing shortages in skilled nursing facilities, including stats on admissions limits and recruitment challenges.
🔗 https://www.ahcancal.org

  1. Health Affairs – “The Post-Acute Workforce Crisis: Time to Address the Core Issues”

A detailed look into workforce shortages across home health and long-term care, including wage stagnation, burnout, and policy implications.
🔗 https://www.healthaffairs.org/content/forefront/post-acute-workforce-crisis-time-address-core-issues

  1. Kaiser Family Foundation (KFF) – “Health Coverage and Access Among Direct Care Workers”

Highlights the gap in healthcare coverage among long-term care and home health workers, emphasizing the affordability barrier and impact on retention.
🔗 https://www.kff.org/report-section/health-coverage-and-access-among-direct-care-workers-issue-brief/