Given the uncertain times we live in, nurse staffing has become a real problem for medical facilities in the US. Skilled Nursing Facilities and hospitals have had to continually adapt to changing care demands while attempting to balance profit with nurse staffing levels. To cut costs and maximize profit, facility management personnel sometimes decide to lay off nurses and avoid hiring new ones. But some management personnel can’t help but wonder if this could be detrimental to their facility’s bottom line. This article will examine the impact of nurse staffing on financial performance to yield you some valuable insight.
Robust Nurse Staffing Positively Impacts Financial Performance
Most medical management professionals know that achieving and maintaining optimal nurse staffing levels is integral to the financial stability of their facility. When there are enough nurses to meet demand, the facility can administer stellar patient care effectively and timely. But in cases when facilities are strapped for cash, HR and top-level management may be tempted to cut nurse staff.
Competitive Advantage for Fully Staffed Facilities
According to the National Institutes of Health, having plentiful nurses on hand can make your facility stand out and create a competitive advantage. As a result, more patients will seek care in your facility versus competitors, positively affecting revenues. This mainly applies to SNFs (Skilled Nursing Facilities) that operate in an area where there are many competitors.
In addition, adequate nurse staffing is linked to an overall increase in productivity, translating to more revenue and profit. This often offsets the initial cost of hiring new staff or the ongoing costs of paying existing nursing staff.
Well-Staffed Facilities Avoid Money-Draining Situations
Management must not only be concerned with maximizing money coming in - they should also avoid unnecessary costs. Even if your facility is not located in a competitive area, you need enough nurses on hand to reduce money-draining consequences. We’ll briefly discuss them below.
Wrongful Deaths Due to Neglect
Overwhelmed nurses at understaffed facilities are more likely to overlook patients, leading to wrongful death in some cases. Aside from the tragedy of the death, the facility could be hit with a lawsuit, which could prove to be expensive. To avoid consequences like these, it’s always best to bolster the nurse workforce and ensure adequate staffing levels (not cut staff to keep costs low).
Excessive Turnover
Employees at understaffed facilities are under considerably more stress than those working at adequately staffed ones. They often have to take on extra duties to ensure that the facility runs smoothly. Unfortunately, this often leads to burnout and job dissatisfaction, culminating in turnover.
When a facility unexpectedly loses a staff member, financial impacts must be considered. On average, every instance of turnover can equate to a loss of up to 2 times that employee’s salary. And as more people leave the company, this sets off a negative cycle; remaining employees become more and more strained to the point that they consider leaving too.
Reduction in Facility-Acquired Infections
A facility without staffing issues may experience fewer instances of facility-acquired infections than those that are understaffed. Liability for these infections may be pinned on your facility, and if that happens, you may be required to pay for the additional care that the patient needs. The facility may also be liable for legal fees, fines, and settlements.
How Many Nurses Do You Need?
As you may already know, more nurses is not automatically better. And the number of nurses necessary to keep your facility running efficiently may differ from those of your direct competitors. But as a general guideline, a nurse-to-patient ratio of 1:5 is recommended.
Note: It’s wise to reference your state’s minimum nurse-to-patient ratio rules and recommendations.
If your facility meets the minimum requirements for nurse staffing ratios and management is still seeing signs of inadequate staffing, it may be advantageous to hire more nurses.
Get the Nurses You Need Quickly
Finding competent nurses often proves to be difficult and expensive. While some facility HR departments keep staffing completely in-house, more and more facilities are branching out and considering nurse staffing agencies. Agencies like these have quality nurses on-hand and ready for deployment to your facility on relatively short notice.
We encourage you to examine nurse staffing levels as well as the overall health of your facility to see if there’s room for improvement. Some signs that could indicate the need for more nurses include:
Keeping your facility fully staffed is not easy, especially in the era of COVID. But with the right staffing agency by your side, your facility can weather these conditions and come out on the other side with financial stability.