Are we in a Recession?

hand keeping the dominos from falling

The conventional benchmark has been that two consecutive quarters of a generally slowing economy define a recession. The Bureau of Economic Analysis, an agency embedded in the U.S. Department of Commerce, said that as of July 28, 2022, such an economic pullback occurred in the first and second quarters of this year. [1]

If we are in a recession, how long will it last?

According to the NBER, recessions have lasted anywhere from two months to several years. But our current economic climate presents unique circumstances that make it difficult to draw a direct comparison with past events.

The pandemic’s lingering effects, particularly in inventory and supply chain disruptions, are major wild cards. Unemployment is still low, but we hear more talk of layoffs and business expense cutting each week. The war in Ukraine is another concern.

Economic cycles are impossible to predict, so it’s best to be financially prepared. [2]

Is healthcare recession-proof?

According to Becker’s Hospital Review article, maybe not. People may delay or forgo specific procedures. Also, the loss of jobs may result in, best case, people switching to Medicaid. The buffer is still there, but it is being chipped away.

What are a few things a business (practice) can continue to do during a recession?

Regardless of the business, the data is clear. The ones that can weather the storm and keep providing value while maintaining/increasing their marketing efforts are the ones that come out ahead when the storm clears.

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