Increasing care demands, persistent staffing shortages, and declining Medicare reimbursements are creating significant financial pressure across the health care system. Many nonprofit hospitals, physicians, and subspecialty practices are eliminating nonclinical positions to stabilize their budgets, creating a pressing need to cross-train and redeploy clinical staff, according to SHRM research.
“We’re not making more clinicians, and there’s no money tree shaking that allows us to pay more,” said Jâlie Cohen, CHRO at Radiology Partners.
As nonclinical roles are reduced, the need for cross-training and redeploying clinical staff becomes unavoidable. Simultaneously, advances in artificial intelligence are accelerating changes in how health care work gets done, increasing demand for continuous upskilling across roles.
“The only way through is through these technological innovations,” Cohen said. “For us as HR leaders, it’s new and uncomfortable, and our jobs are one of the most easily disrupted by AI, but we have to understand how this enhances our work and can positively impact patient care.”
And HR leaders are uniquely positioned to meet this dual challenge and can transform a shrinking workforce into a future-ready talent pipeline through internal mobility programs, manager enablement, and AI-aligned upskilling.
The Urgency of Upskilling
In addition to budget-driven layoffs, AI’s rapid evolution could automate significant portions of health care work, increasing demand for continuous upskilling. A Goldman Sachs analysis estimated that increasingly sophisticated AI tools could expose the equivalent of 300 million full-time jobs to automation globally, including many health care roles.
Without proactive learning and development strategies, hospitals risk widening talent gaps as patient needs become increasingly complex.
“AI has been around forever — think back to Alexa — but it is in the forefront now because of how prevalent it is,” Cohen said. “Our role as HR leaders is to understand how we can leverage it to add value to our employees.”
Workers understand that AI will change their roles and want support in preparing for it. SHRM research revealed that 51% of workers want enhanced training that focuses on AI. Although Cohen said this may be controversial, people need to take the initiative to learn about AI.
“We go to YouTube and teach ourselves how to do everything else,” she said. “The days of waiting for your employer to train you in big rooms are behind us. There are still places for these trainings, but there is no excuse for anyone to wait for their employer to upskill them on AI.”
HR’s Upskilling Road Map
By pairing internal mobility programs with manager enablement and AI-aligned learning pathways, HR leaders can transform workforce constraints into a more resilient and future-ready talent pipeline.
Cohen recommended these three strategies:
- Recognize generational differences. “You'll have different generations with different expectations,” she said. “We need to make sure we take the time to prepare them for change — how to lead through change.
- Focus on soft skills and resilience. “Encouraging and training leaders on soft skills, critical thinking, and resilience is needed,” she said. “Looking at AI as a tool to enhance work versus a replacement is key.”
- Empower front-line supervisors with coaching skills. As AI and advanced technologies automate administrative tasks, front-line supervisors and managers must step into coaching roles to help those they lead develop new skills.
The Only Constant Is Change
The pace of workforce transformation is accelerating, and HR leaders are being asked to navigate financial constraints, talent shortages, and AI-driven change all at once. Cohen said that in her more than 20 years in HR, this is the most disruption she’s seen compressed into such a short time.
“And by the way,” she said, “there’s going to be another change that follows AI.”
That reality makes one thing clear: Adaptability can no longer be reactive. Organizations that invest now in internal mobility, manage enablement, and continuous upskilling will be better positioned to absorb what comes next. Those that wait risk falling further behind in an already-strained health care system.
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