Nursing shortage puts patient health - and the hospital’s bottom line - at risk

Addressing the Nursing Shortage: A Growing Crisis in U.S. Healthcare

The nursing shortage in the U.S. healthcare system presents a serious challenge to patient safety and hospital finances. This ongoing issue involves a significant gap of nearly 200,000 registered nurse (RN) and nurse practitioner (NP) roles. The impact on patient care is evident as existing nurses are forced to work extended hours, leading to fatigue and an increased likelihood of errors. Studies have linked understaffing to higher mortality rates, medication errors due to nurse fatigue, and patient dissatisfaction stemming from long shifts. Financially, hospitals are feeling the strain, with RN turnover in large hospitals costing up to $6.4 million and understaffing potentially resulting in losses of $90,000 a day. The extensive reliance on temporary staff further strains hospital budgets, with labor costs consuming nearly half of hospital revenues.

The Root Causes of the Nursing Shortage

The nursing shortage is driven by multiple factors, including a limited supply of qualified candidates, inefficient recruitment processes, and high turnover rates. With nearly 700,000 nurses expected to retire by 2024, nursing schools are struggling to meet demand due to faculty shortages. Additionally, hospitals often rely on ineffective online job postings with lengthy hiring processes averaging 82 days. High turnover rates, particularly among new nurses and millennials, continue to exacerbate staffing issues, as long shifts and burnout contribute to the churn.

The aging U.S. population, which is expected to comprise 22% of residents by 2050, further strains the healthcare system, as older adults typically require more intensive care. Hospitals known for high-quality care, like Mayo Clinic and Cleveland Clinic, attract top-tier physicians, yet the reliance on temporary staff can lead these physicians to seek employment at better-staffed facilities, ultimately impacting care quality and patient satisfaction.

A Technology-Driven Solution

One healthcare system in the Western U.S. successfully tackled its staffing challenges by partnering with GoodWork Health, reducing its hiring times from 70 days to less than 30 days. This solution not only sped up the recruitment process but also cut hiring costs in half. Immediate action is essential, as hospitals face mounting financial pressures from declining reimbursements and increasing patient costs. By leveraging technology-driven hiring solutions, healthcare institutions can secure high-quality nursing staff and continue to maintain excellent care standards.

By adopting streamlined recruitment practices, hospitals can alleviate the burdens of the nursing shortage, ensuring safer, more efficient care delivery and maintaining their financial stability.

For more information on how GoodWork Health is helping healthcare organizations solve staffing challenges, visit GoodWork Health.