As Indiana continues to lose health care talent to burnout and out-of-state competition, policymakers are searching for innovative solutions. A new policy brief from the Bowen policy team examines how state tax credits could help address our growing health care workforce shortage.
Clinical preceptors are critical for ensuring students are equipped with clinical skills prior to entering the workforce. Several states have already implemented tax credit programs to recruit and retain health care professionals into clinical preceptor roles, and in this brief we take an in-depth look at two of them: Colorado and Hawai’i. These programs offer substantial incentives — up to $10,000 annually in some cases — for medical professionals serving in high-need roles or locations. In 2023, the Indiana General Assembly considered establishing a similar program through HB 1598, which would have provided tax credits for nursing preceptors, but it didn’t make it past its first reading.
The brief outlines key considerations for policymakers, including program administration costs and the importance of strategic targeting. While tax credits aren’t a silver bullet, they represent one evidence-based approach to strengthening Indiana’s health care workforce.
Read the full brief here to learn more about how tax credit strategies could help secure Indiana’s health care future.