A Study of Healthcare Occupations in Northwest Tennessee — Workforce Needs, Career Ladder, Awareness Programs , and Fin

1. A Study of Healthcare Occupations in Northwest Tennessee—Workforce Needs, Career Ladder, Awareness Programs, and Financial Sources for Training Murat Arik, Ph.D. Associate Director Business and Economic Research Center Jennings A. Jones College of Business Middle Tennessee State University Murfreesboro, TN 37132 In Cooperation with Dyersburg State Community College and Northwest Tennessee Workforce Investment Board Dyersburg, TN

2. What Are the Issues? • Setting up Northwest Tennessee Healthcare Consortium • Identifying shortages in the healthcare industry in northwest Tennessee • Analyzing factors affecting shortages • Thorough provider and workforce professional surveys • Thorough school perception surveys • Developing career ladder for healthcare occupations • Identifying elements of a marketing campaign to help students develop a positive attitude toward education and healthcare occupations • Identifying sources of funding for education and workforce training BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

3. Methodology Primary Data Sources: • Interviews with local healthcare professionals (28 individuals across seven counties) • Provider survey (52 completed surveys) • Middle (268) and high school (473) perception survey Secondary Data Sources: • ES 202 data from Tennessee Department of Labor • Census data • Employment projections from different sources • Tennessee Department of Health-Joint Hospital Survey BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

4. Northwest Tennessee Healthcare Shortages An Overview: • More than 6,000 workers are employed in the healthcare sector in northwest Tennessee, 6.6 percent of nonfarm employment. • Nursing and residential care is the largest employer, followed by doctors’ and dentists’ offices (ambulatory services) and hospitals. • Employment growth experienced by nursing homes and doctors’ and dentists’ offices is faster than the state average. • Regarding pay, average northwest Tennessee wages in the healthcare sector are significantly lower than the state average. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

5. Northwest Tennessee Healthcare Shortages Major Sources of Demand for Healthcare workers: • First, the industry needs more workers right now. • Second, retirees and other job leavers will create additional demand for workers. • A third source of the demand for workers is the rising demand for healthcare services. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

6. Northwest Tennessee Healthcare Shortages • Vacancies are across healthcare occupations, but these occupations will grow fastest in the region.

7. Major Constraints on Workforce Availability • Four in 10 healthcare providers in northwest Tennessee currently need more workers. • Employers that need more workers cite turnover and increased demand for services as the primary reasons. • Among larger employers, more are displeased than pleased with the quality of new hires. • The level of education and soft skills among entry-level workers is a major concern for a significant number of employers. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

8. Shortages: Major Constraints on Workforce Availability 4. A number of students entering healthcare training programs lack the necessary educational background. • Efforts to increase the flow of new workers entering healthcare occupations should focus on young people in middle school and high school. 5. Institutional training capacity for some occupations is limited. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

9. Major Constraints on Workforce Availability

10. Addressing Workforce Shortages • Market-Based plansinvolve increasing the attractiveness of healthcare occupations by boosting pay for entry-level workers, improving benefits, and improving the working environment. • Training-Based plansfocus on increasing the local institutional training capacity by increasing the number of instructors. • Perception-Based plans involve efforts to change the public’s perceptions of healthcare occupations and especially the perceptions and attitudes held by young people in middle and high school. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

11. Workforce Shortages: Does the Region Have the Labor Pool to Fill Shortages? • Yes, but they need to be motivated. • Yes, but they need substantial educational help. • Yes, but emphasis should be on dislocated workforce members. • Yes, but they need to have access to healthcare employment. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

12. Workforce Shortages: How Do Middle and High School Students’ Perceive Healthcare Occupations? • By and large, survey results show students understand that a college degree will help them get a good job in the future. • Encouragingly, the vast majority of students plan to attend college, but this desire could be unfulfilled due to: • Low high school grades – Although most 11th graders know what classes they need to get into college, many are not sure their grades are good enough. • The cost of college – Many students believe they cannot afford college. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

13. Workforce Shortages: How Do Middle and High School Students’ Perceive Healthcare Occupations? • The biggest challenge discovered by the survey of students is the lack of desire to pursue an occupation in healthcare. • However, the survey also shows that some of the problem may be due simply to lack of knowledge of the various careers available in healthcare. • Also, the vast majority of students don’t know which courses to take in high school if they desire to pursue a career in healthcare. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

14. Workforce Shortages: How Do Middle and High School Students’ Perceive Healthcare Occupations? BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

15. Workforce Shortages: How Do Middle and High School Students’ Perceive Healthcare Occupations? BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

16. Workforce Shortages: How Do Middle and High School Students’ Perceive Healthcare Occupations? BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

17. Workforce Shortages: How Do Middle and High School Students’ Perceive Healthcare Occupations? BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

18. Why Should I Consider College? BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE Source: Tabulated from Current Population Survey (www.census.gov) (December 2004). Weekly earnings from main job reported in December 2004 CPS survey for the age group between 25 and 65.

19. Why Should I Consider College? BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE Source: www.bls.gov (2004 Q4)

20. Northwest Tennessee Healthcare Industry Career Ladder • Career ladder helps students and professionals understand the opportunities in the healthcare industry. • Starting a career in healthcare requires a strong high school math and science education. • There are several tracks one may choose as a career: • Pharmacy, dental, imaging, nursing, therapy, and clerical. • Whichever choice one makes, there are ample opportunities for advancement and upward/cross mobility. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

21. It’s possible to start anywhere with proper training and education.

22. How Can We Generate Interests in Healthcare Careers—Major Elements • Getting attention – Make students aware of local opportunities in the healthcare field. • Developing interest – Bring healthcare professionals into the classroom. • Generating desire – Bring students into contact with healthcare professions through mentoring, internships, and a healthcare summer camp. • Producing action – Having excited the students’ interest in healthcare professions, use the action plan to make it as easy as possible for students to act on their interest. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

23. Healthcare Education Funding Sources • There are many sources of financial aid available to qualified students who want to go through healthcare workforce training/education. • Planning early is critical to securing necessary funding for your education. • Many available funding opportunities are administered through the financial aid office of area colleges. • Consult with the financial aid office of these colleges for eligibility requirements. • There are many types of financial aid. Determine which fits your financial needs. • The available resources, however, may not be enough to cover all costs. • Regional cooperation under the healthcare consortium may provide necessary support for the unmet portion of the cost of school in the region. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

24. Healthcare Education Funding Sources • There many types of federal financial aid: • Federal Pell Grant • Federal Perkins Loans • Federal Supplemental Educational Grant • Federal Work-Study • Non Work-Study • Federal Stafford Loan • Federal PLUS Loan • Tennessee-Based Financial Aid Sources: • Robert C. Byrd Honors Scholarship Program • Ned McWherter Scholars Program • Tennessee Education Lottery Scholarship • Tennessee Dual Enrollment Grant BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

25. Healthcare Education Funding Sources • Region-Based Financial Aid Sources: • Check local hospitals and other medical facilities for the availability of grants for healthcare workforce training. • Other Sources • Many healthcare career related associations also offer financial aid. For more information, visit the following Web sites: • www.mapping-your-future.org • U.S. Department of Education at www.ed.gov • Free Application for Federal Student Assistance at www.fafsa.ed.gov BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

26. Healthcare Education Funding Sources • There are also local healthcare facilities that allow one to work and get training at the same time. • Most Certified Nursing Assistants work at nursing care facilities while going through their training. • Similarly, a Certified Nursing Assistant would pursue LPN training while working at a healthcare facility. • Check the nursing care facilities in your county to inquire about these opportunities. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

27. Sources for Workforce Development • Federal Sources • U.S. Department of Health and Human Services (www.hhs.gov/grantsnet/) • National Institutes of Health (http://grants.nih.gov/grants/oer.htm) • U.S. Department of Labor (www.dol.gov/oasam/grants/main.htm) • National Science Foundation (www.nsf.gov/funding/) • U.S. Department of Education (www.ed.gov/funding.html) • U.S. Department of Agriculture (www.usda.gov/rus) • Department of Commerce, Economic Development Administration, Economic Development Assistance Program (www.eda.gov). BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

28. Sources for Workforce Development • State Level Agencies/Organizations • Tennessee Department of Workforce Development (www.state.tn.us/laborwfd/maininfo.html) • Tennessee Department of Economic and Community Development (www.state.tn.us/ecd) • Tennessee Center for Health Workforce Development (www.healthworkforce.org) • Tennessee Hospital Association (www.tha.com) • Tennessee Center for Nursing (www.centerfornursing.org) BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

29. Sources for Workforce Development • Private Sources • Andrew W. Mellon Foundation (www.mellon.org) • Anne E. Casey Foundation (www.aecf.org) • Bill and Melinda Gates Foundation (www.gatesfoundation.org) • The Ford Foundation (www.fordfound.org) • Henry J. Kaiser Family Foundation (www.kff.org) • The John D. and Catherine T. MacArthur Foundation (www.macfound.org) • Lawrence Foundation (www.thelawrencefoundation.org) • Pew Charitable Trusts (www.pewtrusts.com) • Robert Wood Johnson Foundation (www.rwjf.org) • W. K. Kellog Foundation (www.wkkf.org) • William T. Grant Foundation (www.wtgrantfoundation.org) BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

30. Next Steps • Focus on that which is amenable to change.Attitudes, perceptions, and desire can be changed. Training programs can be tweaked and new sources of funding pursued. • Build and reinforce lines of communication among healthcare stakeholders.The healthcare consortium is a start; build on it. • Write down an implementation plan.What actions should be taken? Who is responsible for each action? When will each action occur? Who will monitor progress of implementation, and how often will they report to the consortium? BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

31. Study Information Study Co-Authors • David A. Penn, Ph.D. The director of the BERC and associate professor of economics • Susan K. Harmon, Ph.D. Associate professor of management and marketing BERC and Study Information www.mtsu.edu/~berc BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE

32. BUSINESS AND ECONOMIC RESEARCH CENTERin cooperation with NORTHWEST TENNESSEE WORKFORCE INVESTMENT BOARD and DYERSBURG STATE COMMUNITY COLLEGE Thank You!