On June 24, 2022, the Supreme Court issued its ruling in Dobbs v. Jackson Women’s Health Organization, overturning Roe v. Wade and throwing the issue of abortion access and its legality to state-level jurisdiction. Thirteen states had “trigger laws” set to take effect if Roe was overturned, and even more new laws related to abortion access are making their way through state legislatures.
Unwinding a half-century-old framework for medical practice will have implications for every corner of the health care industry. Because providers have some of the largest and most immediate questions, this report focuses on the impact for hospitals, health systems, and physician groups and their leaders.
Many providers have not felt pressure to declare a public position on abortion – either politically or through offered services–because in many markets alternatives were available. Most large health care institutions left elective abortion care to independent abortion care providers, who deliver the vast majority of abortions in the United States. The temptation to continue to fly under the radar is understandable, especially when it may feel like it is a no-win proposition to engage in a heated political environment. However, with Roe eliminated, the real-world consequences of policy change on clinical workflows and employee engagement cannot be avoided.
We’ve outlined five hard truths about restricted abortion access and how it will impact provider businesses. Though some of the recommendations below may apply to other organizations, we plan to publish more in-depth work on how this will specifically impact other sectors of health care.
In this report, we share the consequences of inaction, offer action steps to mitigate those business risks, and share implementation guidance to help leaders navigate an uncertain moment for the health care industry.
Action step: Watch for shifts in volume, payer, and case mix, but focus efforts on the hidden costs that present more serious near-term business risk.
This industry knows all too well that business impact is much more than volumes, cost centers, and revenue streams. The Covid-19 crisis has shown what the load of constantly shifting strategy does to weary executive teams, the toll crisis after crisis has on our workforce, and how innovative solutions fall to the back burner as leaders pivot to put out the next fire.
That said, volumes forecasting is the backbone of provider financial planning. Many leaders we have spoken with since the draft Dobbs ruling was leaked expect an increase in pregnancy care volumes. Early Advisory Board analysis shows that despite a wide range of business and operational challenges in a post-Roe world, abortion restrictions are unlikely to change provider volumes enough to significantly impact overall finances. That’s because the proportion of pregnancies that end in abortions is small—only about 15% of pregnancies today – and an even smaller share of those will result in an increase in births (and thus, labor and delivery volumes). Given the absence of a federal abortion ban, some women in states where abortion is now more restricted will access a desired abortion out of state or, as has always been the case, through other means.
Similarly, OB units will likely see greater complexity (and costs) from maternal and fetal health complications, but the overall impact will be marginal, as most abortions are not conducted on the basis of maternal and fetal health. If those are the patients who would also have more complicated pregnancies, it's unlikely to be a large enough population to change the average complexity of a hospital's obstetrics unit in the near or medium term.
While the overall volume impact may be small, for most providers the level of distraction and confusion could be disproportionately high. It will be important to get ahead of any downstream impact on staffing, operations, or larger population health and equity efforts. We recommend that providers measure volume, payer, and case mix shift with an eye to both internal and external reporting that may not previously have been expected.
Furthermore, in this environment even a single clinical event – particularly one with patient safety or legal ramifications – could have immense potential for operational and legal complexity, administrative burden, moral exhaustion among staff, and serious reputational risk for the institution. These hidden costs represent the bulk of the business risk for providers.
Implementation recommendations for leaders:
Action step: Provide immediate emotional support to your workforce.
Employees’ emotional responses to the ruling could have significant negative impacts on staff morale productivity, absenteeism, and presenteeism—all of which will be harmful to your bottom line if left unchecked. Imagine colleagues of yours in a variety of roles and levels, some of whom intensely disagree with the Dobbs ruling and some of whom intensely agree with it. How can they know that their employer is sensitive to how this affects their work, their benefits, and their sense of community in the workplace?
We’re already in a workforce crisis that’s only been intensified by Covid-19. Staff, especially those in clinical roles, are losing confidence that health care organizations are committed to worker wellbeing. For many employees, that gap between their organization’s stated values and lived values has driven them to leave their employers, and in some cases the health care field entirely. For others who have stayed, an institutional response to the Dobbs ruling characterized by silence, denial, or bureaucratese could easily push them over the line to seek a new employer whose organizational commitments more clearly match their personal beliefs on abortion or other core values.
Staff who directly touch abortion care or maternal health generally merit a focused approach to their engagement. In states where abortion remains available, your staff providing care will appreciate acknowledgement that their work is valued. And, the acknowledgement that their job is likely to get harder as they deal with travelers from states where abortion has been newly restricted. Even in states where abortion is banned or severely restricted, patients will seek access to care and staff will have to navigate new levels of logistical and emotional complexity. In emergency situations, the decision to provide certain care or not will have a huge emotional toll—not to mention clinical confusion and new manifestations of legal risk.
It is vital to check on your staff wellbeing early and often. This is especially important for staff most likely to encounter the elimination of Roe in their daily work. This isn’t limited to physicians, nurses, and care teams. Front desk staff will face questions from confused patients, claims agents will process their numbers, and more.
The diversity of personal views about abortion may also affect interpersonal relations among your staff. It’s important to remind staff that open forums for discussion, from meetings to internal chat boards to employee resource groups, should be grounded in mutual respect, and to find solidarity in furthering the work and mission of the health care institution itself.
Being aware of employees’ emotions and wellbeing is the first step to providing them with the resources and support that they need. However, it is essential that you approach their emotional wellbeing with the utmost respect for their privacy. Anonymity is absolutely essential, so design pulse-check surveys and communication channels that are blinded and that lead with empathy—something many providers implemented in the early days of the Covid-19 crisis. Once you have a sense of your staff’s emotional state, identify resources and support for all staff to access, especially targeting those who expressed negative emotions in the pulse check.
Implementation recommendations for leaders:
Action step: Create a single source of truth for patients and consumers.
If providers don’t anticipate what questions they’ll receive and proactively prepare responses, the influx of requests will overwhelm staff, lead patients to seek services elsewhere, and create care gaps. Payers and employers will also benefit from clear information—providing answers for what services are and are not available, where services are provided, and how to access them. This situation is similar to the confusion at the start of the Covid-19 crisis, and leaders should reinstate their pandemic communication teams to provide clear information that patients, members, and staff can rely on.
Provider leaders should consolidate information on how their services will change across all relevant inpatient, ambulatory, and community sites. This information should live on a dedicated page on the institution’s website and should be repeated through all communication channels, including social media. Health leaders should also consider a centralized, dedicated team of staff to keep public information updated and to field questions—whether from patients looking for clarity from their provider, employees looking for information about their health plan, clinicians trying to understand their role in the larger ecosystem.
Implementation recommendations for leaders:
Action step: Constantly ensure the workforce is aware of new (and changing) legal realities.
Dobbs v. Jackson has placed the issue of abortion access to the states, meaning that health systems must rapidly identify the new legal landscape in which they operate. These laws raise many legal questions for providers beyond simply whether they are allowed to perform abortions. For example:
In Poland, which has gradually imposed stricter restrictions upon abortion access over the last 20 years, clinicians often report ‘paralysis’ in making clinical decisions related to abortion, largely based on fear of legal repercussions. Without clear legal and clinical guidance on their roles, health care workers risk developing high rates of moral distress, compromising clinical safety, and adversely impacting patient outcomes.
As legal teams go into overdrive, health leaders must focus on equipping staff with the knowledge, psychological safety, and tools needed to address changing policies and their impact on care delivery. Some of these legal questions will be difficult to answer, and it is essential that health care leaders be transparent about the uncertainty they face and how they plan to respond to that uncertainty.
Implementation recommendations for leaders:
Action step: Adapt clinical and operational pathways in accordance with new policies.
As the legal reality in which clinicians work changes, providers may be concerned about how to provide consistent, appropriate, and high-quality care for their patients. In jurisdictions where abortion access is restricted after Dobbs v. Jackson, the confusion and concern felt by staff will be immediate. Absent specific plans for how to deal with situations in which the mother’s life is at risk or any number of other clinical scenarios, care will be delayed and staff will face moral distress as they grapple with their own ethical dilemmas.
Clinical leaders will need to decide how to best prepare their clinicians for this shift so they can provide safe and quality care. This may mean training clinicians in the ED to recognize and manage patients presenting with symptoms of miscarriage or when it is suspected that a pregnant person has attempted to end their pregnancy. Not to mention preparing NICUs for a potential rise in volumes or changes in case mix. Even a single adverse event can put hospitals and individual providers on the front page of the local newspaper, raising the stakes for every clinical decision. Provider leaders across service lines need to come together and create functional clinical and operational pathways to ensure the well-being and safety of patients while protecting the larger organization and its clinicians and staff.
Implementation recommendations for leaders:
Action step: Craft a benefits policy to address the geographic implications of Dobbs v. Jackson on each facility in a way that reflects your mission and keeps you competitive as an employer.
After the initial impact of Dobbs v. Jackson, current staff and prospective talent will consider how the decision will influence their choice of employer. Beyond the immediate impact on mental health and wellbeing, there will be long-term impacts on lifestyle and family planning. Current staff will want to know how they will be supported through these changes and if continuing in the same role and location is worth potential new, emerging challenges. Prospective talent, including medical residents, will consider how their quality of education and how their medical practice might be different depending on state laws. Plus, the benefits an employer offers will become even more valuable to employees as their choice of workplace impacts the most personal, intimate decisions they make.
In fact, many companies—inside and outside of health care—have already started setting precedents for reimbursing travel costs and time off to access abortion care in other states. Others may consider how to expand childcare, adoption, pregnancy care, and paid parental leave benefits for their employees. Staff will be watching such changes, considering how they affect the competitiveness of your employee value proposition, and expecting clear information about how your organization will support them.
Lastly, use this moment as an opportunity to address the experiences of working parents at your organization. Studies show that over two-thirds of employees believe that working mothers are more likely to be passed over for a new job than other staff members, with some women choosing to hide pregnancy status until the last moment for fear of negative workplace repercussions. Reaffirm your organizational commitment to fair and equitable workplace treatment regardless of family status.
Implementation recommendations for leaders:
Action step: Address the implications of restricted abortion into professional development strategy.
Organizations must rapidly assess how to use their employee learning and development functions to address the specific clinical and workforce needs stemming from Dobbs v. Jackson. Educational scope will likely change in states that outlaw abortion, and residency programs and other educational opportunities will shift in conjunction with emerging laws and regulations. In addition, residents and employees who require continuing education will want clarity on what they can and cannot learn, and what clinical actions they can and cannot take at your organization.
All clinicians will need to receive education and guidance about new legal and ethical responsibilities in jurisdictions where abortion access will change. As the clinical impact of Dobbs v. Jackson becomes clearer, staff will also need to understand how to provide different maternal health care for potentially new patient populations. Without addressing these areas, employers will lose out to talent and to employees prioritizing career development opportunities.
Implementation recommendations for leaders:
Action step: Critically evaluate obstetrics unit finances and proactively plan for gap-filling services.
Historically, many providers have chosen to close OB units when birth volumes become more complex at the same time that a rising, unfavorable, Medicaid-heavy payer mix is met with clinician shortages. The business risks outlined in this report point to these scenarios becoming more common, particularly in areas where abortion is the most restricted.
If leaders do not judiciously assess their OB unit finances in the wake of these impacts, they risk broader facility insolvency. They also risk drops in quality, patient trust, and staff engagement that often come when demand and resources are mismatched. These are precedented risks that have driven the closure of roughly 200 labor and delivery (L&D) programs since 2004 and left over half of rural counties without an OB unit and without a practicing ob/gyn.
Implementation recommendations for leaders:
To further guide your rationalization decisions, reduce potential consequences of L&D closure, and understand the potential role of health plans in improving maternity outcomes, see our recent publications: Service rationalization toolkit, Leading service rationalization decisions, Communicating about rationalization decisions, How to mitigate the long-term effect of OB unit closures, and How 2 organizations provide accessible pregnancy care.
Action step: Support holistic women’s health across all service lines.
Despite the steps leaders can take to optimize their obstetrics programs and mitigate the business risks, there will be cases where it is not financially feasible to continue operating an L&D unit. In these cases, leaders must take steps to ensure gap-filling services. If providers do not ensure access to prenatal care and other women’s preventive services in the absence of an OB unit, they risk adverse patient outcomes. Studies have shown that a lack of prenatal care increases the likelihood that a patient will die from a pregnancy-related outcome by three to four times. These care gaps also decrease staff morale, reduce patient and community trust, and for systems in urban areas with comparably located OB units, a forfeit of up to 70% of the volumes that could have been captured at the initial site.
Even outside of direct unit closures, all providers can benefit from taking an expansive definition of women's health beyond pregnancy care, elevating the needs of patients across all service lines, and throughout all stages of the patient’s life. Some may take this opportunity to invest in women’s health as a dedicated service line, whose leaders have access to a unified data set that aggregates information related to women’s health from all parts of the business.
Of course, not all providers should create a women’s health service line. Rather, it is particularly timely for providers to assess the opportunities in their individual markets to determine how best to cater to patients who need these services. These opportunities may include shifting services to be closer to the patient by leveraging telehealth or consolidating services into women’s health ambulatory centers, for example.
Implementation recommendations for leaders:
Action step: Address the root causes of maternal health inequities.
The increased emphasis on racial health equity in the wake of the racial justice uprisings in 2020 led many health care organizations to name maternal health equity as a key priority. The overturning of Roe v. Wade presents a significant challenge to those efforts. Patients of color already face disproportionate rates of maternal mortality and morbidity (the maternal mortality rate for Black patients is 3.3x the rate for white patients). These patients will also be disproportionately impacted by abortion bans, sparking many fears that maternal health inequities will only worsen.
Expect the Dobbs ruling to increase scrutiny around your maternal health equity strategy. View this as an opportunity to renew and expand your investments. Because while many organizations have already made significant investments in maternal health (or at least made public statements of that commitment), most strategies are too narrowly focused on improving protocols for labor and delivery, even though the majority (64%) of pregnancy-related deaths occur before labor and in the immediate postpartum period. In addition, many conventional strategies aimed at supporting maternal health miss opportunities to address the root causes of maternal health inequity: enduring legacies of institutional racism hardwired into policy, social institutions, and culture; as well as the diminished priority of women's holistic health care across the life span, particularly in favor of fetal outcomes.
Though the root causes are complex, there's good news: The industry has surfaced proven action steps that can reduce disparities.
Implementation guidance:
For more on this issue, review our take on Addressing the Root Causes of Maternal Health Inequity.
In a highly regulated industry with an emphasis on compliance, it is only natural that the legal uncertainty and complexity unleashed by the Supreme Court ruling would be unsettling for employees and leaders alike. The business challenges we highlight in this report are not comprehensive, but they are the clearest at this early stage and the most urgently faced. They will certainly be difficult to “get right” in a way that satisfies everyone. Health care leaders must choose this moment to communicate more, listen more, measure more, and self-examine more than they would normally do. That is the path to better engagement and better results for your business, your people, and your patients.
Chloe Bakst, Darby Sullivan, Kara Wall, Joel Whitaker, and Rachel Zuckerman contributed to this post.
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