Quote History Quoted:
That's always been the question. If they had just increased wages to begin with, they wouldn't have lost all their staff to travel agencies. I guess they view higher wages as a permanent cost and want to gamble that it's cheaper to pay more now.
View Quote View All Quotes
View All Quotes
Quote History Quoted:Quoted:Quoted:
Local hospitals started "in house" travel nursing agencies, where you sign a 3 month contract directly with the hospital. Nurses get the higher travel pay and the hospital saves the 30% that the agency skims. My wife is about to start her second contract with them.
So why not just increase wages? I don’t get it
That's always been the question. If they had just increased wages to begin with, they wouldn't have lost all their staff to travel agencies. I guess they view higher wages as a permanent cost and want to gamble that it's cheaper to pay more now.
The problem with raising wages for nursing is that nursing services is viewed as a “cost” by the bean counters.
Prior to the 1930s, hospitals were more for the poor/indigent and was often staffed by volunteers or religious orders. Nurses also often billed families directly for their care. Scientific advancements opened the door to hospitals becoming businesses in the ‘30s. Hospitals struggled with how to pay nurses so they looked to the hotel industry for ideas. The charge for nursing services was included in the daily room charge as a cost control measure in the ‘30s. This has had the effect of depressing nursing salaries for decades by excluding them from supply/demand market forces. This is part of why travel nursing took off during covid. The market pressure became so great for resources it side stepped the cost controls for nurse salaries and travel nursing exploded.
https://www.beckershospitalreview.com/want-to-fix-the-nursing-shortage-change-this-100-year-old-policy.htmlThere’s also an issue with a flawed budget process in use by many hospitals that produces a 2-6% shortfall in expected FTEs needed to met their budget assumptions for patient care, time off, and education. One of the largest health systems in the US is using this flawed budget process and, due to the math error, they need over 2,000 more nurses than they realize. The bad budget process is actually being taught to nurse managers and other nursing leaders by 4 high-profile healthcare professional organizations and charging attendees $400-$600 per person. I’m retaking one of these workshops this week to see if they’re still teaching the wrong way after I brought it to their attention last fall. I’ve tracked the error across 30+ sources spanning the past 39 years including journal articles, textbooks, conference presentations, white papers, and consulting materials. There are a lot of “experts” that have made a LOT of $ and established their reputations on teaching this flawed method to healthcare leaders. The first author/expert I contacted regarding finding the error in a couple of their articles responded that they had “always done it that way” and that they had worked with 3 large consulting firms and they did it that way too. So this issue is likely widespread and the nursing shortage is likely even worse than we realize.
There’s also a whole mess around how many healthcare leaders simply don’t understand how to operationalize nursing budgets… but I could give a whole day seminar on all those issues.
We’ve been shooting ourselves in the foot for decades and it’s come time to pay the piper.