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FOR IMMEDIATE RELEASE:
February 13, 2025
PHOENIX, Ariz. (February 13, 2025) – The Greater Phoenix Chamber Foundation (Foundation) released its Arizona Statewide Healthcare Workforce Plan. This report offers valuable insights to help leaders across the state identify priorities and implement strategies to mitigate the healthcare workforce shortage.
In early 2024, the Foundation engaged with workforce experts from American Institutes for Research (AIR) to support a series of activities aimed at identifying, documenting, and addressing healthcare talent pain points, existing solutions, and gaps in Arizona. Throughout 2024, the Foundation hosted a series of quarterly healthcare workforce convenings and interim partner conversations, with initial support from AIR.
These convenings brought together 14 employers, over 40 workforce and education practitioners, and the Arizona Governor’s Office and agencies. Stakeholders identified critical workforce issues and related skills gaps that both prioritize existing efforts for replication as well as gaps in available skills. Ultimately, these convenings led to the creation of a strategic plan that can be utilized by a variety of organizations statewide to make a credible impact on our ongoing healthcare workforce shortage.
As the state’s authority on labor market trends, the Arizona Office of Economic Opportunity played an important role by providing crucial data and input for the plan.
“The Arizona Office of Economic Opportunity’s projections show Arizona’s healthcare industry adding over 130,000 new jobs in the next decade, highlighting the critical need to grow our healthcare workforce,” said Carlos Contreras, director of the Arizona Office of Economic Opportunity. “This collaborative effort aligns with Governor Hobbs’ Talent Ready AZ initiative, leveraging data-driven insights to cultivate the skilled professionals our state needs.”
While the state has successfully diversified the economy since the Great Recession—resulting in thousands of new high-wage, high-demand jobs—a parallel growth in population and aging of the workforce have led to an increased demand for skilled talent, especially in the healthcare sector. Arizona’s healthcare industry employed approximately 413,300 individuals in 2022 and according to state economists, is projected to have the highest numerical growth rate of any sector over the next ten years.
The plan shares data about the healthcare industry that offers a point of evaluation in overcoming workforce challenges. For example, over the last decade, the healthcare industry in Arizona has grown at a rate of 2.9% per year on average, outpacing the national average growth rate of 1.7%. Despite this innovation and growth, Arizona is facing a critical shortage of healthcare workers. According to the Foundation’s 2023 Healthcare Workforce Report, Arizona will need to fill 132,800 new healthcare jobs created over the next ten years. With a projected supply of only 56,800 new healthcare workers to fill those roles, Arizona may see a gap of 76,000 additional workers needed in the healthcare industry alone. Cultivating a skilled and sustained talent pipeline to keep pace with the industry’s continued growth and diversification will be critical to Arizona’s economic future.
The plan also shares four priorities to address healthcare shortages in Arizona:
- Improve talent demand and supply data to support informed decision-making
- Expand and diversify the healthcare talent pipeline through a statewide career awareness campaign
- Increase availability and flexibility of incentives and funding streams
- Address healthcare educator and preceptor shortages
For each priority, the report provides a set of recommended strategies, actions, and approaches for consideration that elevate strong talent strategies already solving critical healthcare workforce challenges across Arizona. The plan identifies core strategies for statewide progress on each priority, to ensure consensus on key statewide efforts, and to provide a structure for coordinated, collaborative action.
Some recommended strategies and tactics include:
- Create a statewide, strategic working group to study challenges and devise solutions: Develop and launch a nomination process for the statewide working group to mitigate preceptor and educator shortages. Consider the diversity of individuals and geography when nominating workgroup members and ensure the inclusion of both rural and urban representation.
- Leverage existing groups and efforts: Be sure to leverage employer and partner leaders that are already implementing creative preceptor and education expansion solutions. Balance voices at the table by ensuring the inclusion of both employer and education leaders.
“The Arizona Healthcare Workforce Plan is a comprehensive strategy to address critical workforce challenges and ensure a sustainable future for healthcare in the state,” said De Anne Russell, system vice president of talent acquisition, for CommonSpirit Health. “Using data, this plan aims to address the shortage by increasing the supply of qualified healthcare professionals, including doctors, nurses, and allied health professionals, to support the needs of our communities.”
“We are deeply grateful to all participating facilities and professionals for their contributions and commitment to this endeavor. Their input and suggestions have been invaluable,” said Jennifer Mellor, chief innovation officer, of the Greater Phoenix Chamber Foundation. “Their leadership and involvement are crucial as we work together to build a robust and resilient healthcare workforce for our state.”
View the full plan at https://phoenixchamberfoundation.com/healthcareplan .
The Foundation invites industry leaders to join as we collaborate to ensure Arizona has the healthcare talent it needs to thrive. For information on how to actively participate in this work, please contact us at [email protected].
About the Greater Phoenix Chamber Foundation
The Greater Phoenix Chamber Foundation convenes and catalyzes business, education, and community to enhance college and career readiness, develop a more robust workforce, and build healthier communities throughout Arizona. The Foundation, a 501c3 nonprofit organization, leads the charitable and education initiatives of the Greater Phoenix Chamber under the four pillars of education, workforce development, wellness, and research. For more information, visit https://phoenixchamberfoundation.com.
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