Full-Time and Contingent RNs Annual Cost Comparable
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(HealthNewsDigest.com) – SAN DIEGO, June 13, 2011 — A U.S. Hospital Labor Costs Study reveals that the average cost of employment for a full-time registered nurse (RN) nationally is $98,000 a year, or $45 per hour. Due to wage variation across facilities and regions of the country, these costs can reach upwards of $75 per hour.
According to the independent study, conducted by KPMG LLP, average base wages represent only 57% of all-in employment cost, with the balance coming from employer taxes, paid time off, productivity loss, insurance and other costs. The actual cost per hour for a full-time nurse is on average 176% of their base hourly wage.
“This data is important because many healthcare executives distill their decision criteria down to a simple comparison of hourly wages without contemplating the total cost of employment,” said Ralph Henderson, President of the Nurse and Allied Division of AMN Healthcare (NYSE: AHS), the largest provider of healthcare staffing services in the U.S.
Henderson also noted that “Other studies have shown the quality and patient outcomes using contingent RNs are similar to those of full-time RNs. Now, this KPMG study shows cost to be comparable as well, which calls into question whether full-time hiring is the best way to staff-up as demand for healthcare services rebounds along with the economy,” he said.
“The financial business case is only one aspect of the benefits of travel and contingent nursing,” added Henderson. “When it comes to quality outcomes, using supplemental nurses to reach optimum staffing levels reduces stress and attrition among full-time nurses, and improves nurse and patient satisfaction as well as outcomes.”
The KPMG LLP study was designed to explore how hospital executives view the cost of labor and how they determine whether to utilize full-time nurses or supplemental labor. To see the entire survey, go to KPMG’s website by clicking here.
About AMN Healthcare
AMN Healthcare is the nation’s largest provider of comprehensive healthcare staffing and workforce solutions. It serves clients by recruiting and placing healthcare professionals on variable-length assignments and in permanent positions throughout the United States. The firm is the nation’s largest provider of clinical staffing managed services programs and recruitment process outsourcing solutions and provides home healthcare services in select regions. For more information, visit http://www.amnhealthcare.com.
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