Healthcare Staffing Update 

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In 2024, the healthcare sector experienced a notable increase in staffing levels, with hospitals adding over 350K employees, marking a growth of over 6%. A significant highlight was the return of 150K registered nurses (RNs) to the workforce, reflecting a 9% surge. Despite these positive developments, challenges persist, especially with RN turnover rates remaining high at nearly 20%, significantly impacting hospital budgets. 

Key Takeaways: 

  • Positive Trend: Hospitals witnessed a substantial rehiring of employees, notably seeing a significant rise in RN numbers.List Item

  • Ongoing Concern: The national vacancy rate for RNs lingers at around 11%, with almost 20% of hospitals facing vacancy rates exceeding 20%. Critical areas like med/surg and surgical services are particularly affected, posing recruitment challenges.

  • Financial Impact: The escalating cost of RN turnover, now averaging close to $65,000 per bedside RN (an increase of nearly 9%), translates to an annual average hospital loss exceeding $5 million.List Item

  • List ItemStrategic Focus: Hospitals must prioritize controlling labor costs to counter margin compression. Efficient recruitment and retention strategies are pivotal, where recruiting an RN successfully translates to saving $150,000.

Looking Ahead: 

It is imperative for hospitals to focus on attracting and retaining qualified nurses, especially in high-demand sectors. Investing in recruitment and retention initiatives, alongside fostering a supportive work environment, is crucial for ensuring long-term financial stability and delivering quality patient care. 

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