Evolving Contract Labor Opinions in the Healthcare C-Suite

How Facility Leaders Are Acknowledging the Changing Social Contract of Work and Relying on 1099 Nurses to Enhance Care Teams

Top takeaways include the following:

86% of hospitals and health systems saw 10% or more of their nursing staff quit in 2023.

75%

75% of CFOs and 69% of all execs say nursing costs put significant pressure on their bottom line or are the top driver of margin pressures in the past two to three years.

93%

93% of health system leaders do not believe being employed by a health system makes a nurse more valuable than working as an independent contractor.

1/2

Over half of health systems surveyed are deploying four or more strategies to tackle the nurse staffing shortage.

63%

63% of health system executives believe with a larger pool of nurses, they could offer greater flexibility to staff.

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The report was conducted in two phases:

1

Qualitative interviews comprising open-ended questions with:

  • 3 hospital CFOs
  • 3 hospital CNOs

Respondents by Health System Staffed Beds

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2

A quantitative survey that targeted CNOs and CFOs as well as other relevant titles such as nursing executive, CHRO/HR executive, and other health system executives.

  • The quantitative survey was administered from October-November 2023 and yielded responses from 203 health system executives.

Responses by Position

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COVID-19 didn’t create the nurse staffing crisis, but it did exacerbate it –and it’s not over.

The nurse staffing shortage didn’t start with the pandemic, but it has necessitated that healthcare leaders take a fresh look at why it exists and the barriers that get in the way of recruiting and retaining nursing talent.

Nurses have been sounding the alarm on their increasing frustration with mandatory overtime and burnout –workplace challenges that were further inflamed by the global health crisis.

To meet the clinical and regulatory needs of their facilities without risking further alienation from their existing full-time staff, health system leaders shed light on how they’ve been trying to fill the gaps.

Contract nurse volume
more than doubled from 2019 to 2023

50%

50% increase in shifts filled with per diem or contract nurses from pre-pandemic to 2023.

86%

86% of health system executives surveyed saw notable increase in contract nurse labor during pandemic.

98%

98% of CFOs surveyed saw nursing as a significant challenge for their health system during and after the pandemic.

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Facilities who use Nursa fill 3 times as many open per diem shifts, on average, compared to trying to fill the shifts themselves.

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69% of all health system executives, 75% of CFOs

The financial impact of relying on travel nurses and traditional staffing agencies has been – and continues to be – a top concern for these healthcare executives. Many respondents shared that nursing shortages at their facilities have led to a significant increase in overall costs and remains one of the biggest drivers of margin pressure.

Indicated that nursing costs put significant pressure on their bottom line or are the top driver of margin pressures in the past two to three years.

Which of the following best describes your health system’s reliance on contract nursing labor during the pandemic?

Increased significantly duringvthe pandemic

Increased somewhat during the pandemic

Did not change during the pandemic

Decreased significantly during the pandemic

Not sure

“It's been the biggest fiscal challenge. [Nurse staffing] is always the main topic at every meeting I go to, even at the board level, and has been for 15 months because of the cost impact.”

  • CFO of a northeastern academic medical center comprising facilities with 1,000 beds

The problem is both immediate and long-term.

Nearly all respondents agreed that nurses are critical to quality care delivery. Yet their facilities and health systems continue to struggle with recruitment and retention that ensures patients have nurses at their bedsides when and where they’re needed.

Competition for top talent, inflation and compounding financial strains – such as the rate of increase in payer contracts not matching the rate of salary increases – creates a complex set of circumstances for healthcare executives to try to overcome.

The time spent addressing nurse staffing issues adds to the problem.

The crisis looks different every day, respondents acknowledged, indicating that a nimble solution is needed to confront the most immediate and foreseeably consistent staffing problems.

“What you need on a weekly or monthly basis changes. ... Agility and how fast you can fill the roles is very important. When you talk about the financial aspects and strategic planning related to labor, that's tons of additional hours."

  • CNO of a western community hospital with 325 beds

41%

41% of CFOs surveyed have trouble filling open slots in the schedule over the next two weeks.

50%

50% CFOs surveyed have trouble filling long-term roles (13 weeks and longer).

2/3

2/3 increase in shifts filled with per diem or contract nurses compared to pre-pandemic levels in health systems surveyed.

Nurse dissatisfaction is driving the perceived “shortage,” and short-term fixes aren’t enough.

An analysis by McKinsey & Company, which has collected data around nurse satisfaction and pain points over the past five years, found nurse workforce challenges are exacerbated by familiar frustrations, including the desire for greater time for professional growth. Nurses also crave more time for direct patient care, which could contribute to higher-quality care, and fewer administrative demands per shift, a wish list that could be achieved through tech-enabled support.

Years of poor work/life balance, pandemic exhaustion and the exodus of many clinicians who left the profession entirely has had a cumulative effect, leading to present-day struggles.

One out of three nurses wanted to leave bedside nursing in 2022, and nine out of 10 believe the nursing shortage is getting worse, according to a survey by Nurse.org. By 2030, all but eight states could have fewer nurses than they need, the survey found.

For many healthcare executives charged with “stopping the bleed” on their workforce pipeline, the solution hasn’t been easy, revealing how strongly nurses feel about their work environments. Waves of departures were reported among most respondents.

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3/4 CFOs surveyed indicated that they have increased the starting wages for nurses by 20% or more in the past two years

 86% of hospitals and health systems saw. 10% or more of their nursing staff quit this year. 50%+ of hospitals and health systems saw. 20% or more of their nursing staff quit this year.

“We have experienced abnormally high turnover rates.”

  • CFO of a western community hospital comprising one facility with 400 beds and a skilled nursing facility with 40 beds

There is no “magic bullet” cure to the nurse staffing challenge.

Of the 203 healthcare executives who completed the survey, only 2% said they did not view nursing as a significant challenge to their health system.
The majority see technology as a pathway to improving nurse staffing and satisfaction.

The overall sentiment among respondents was that they do not believe technology will replace the sacred space of human interaction when a nurse is put at the bedside of a patient in need. Rather, they think technology can help provide space for health systems to make these nurse-patient connections.

Among health system leaders:

Four out of five believe technology can alleviate administrative burden, allowing nurses to focus on care delivery.

Three out of four view technology as a way to more effectively connect nurses to patients.

Two out of three believe technology platforms can support cost savings for hospitals seeking to fill nursing shifts.

To what degree would the following technologies impact your organizations ability to fill nursing roles?

(Scale of 1-5 with 5 being very significant impact to the organization)

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Survey says: The right tech-enabled solution could have a ripple effect throughout health systems

Many of the respondents shared that their systems and facilities deploy multifaceted strategies to move toward a staffing model that resonates with nurses while filling crucial gaps in their organizations. These approaches aim to improve working conditions for full-time clinicians and make room for contract workers while also supporting the sustainable renewal of the nurse workforce to meet tomorrow’s needs.

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1/2

Over half of health systems are deploying four or more strategies to tackle the nurse staff shortage.

70%

70% of health systems are relying on staffing agencies.

1/3

More than one-third have turned to mandatory overtime for existing nursing staff.

4/5

Four out of five health systems are partnering with nursing schools to strengthen the nurse staffing pipeline.

Significantly, the impact of finding the right formula for integrating contract nurses to relieve the pressures on full-time employees could have far-reaching implications, respondents said.

Two-thirds

of health system executives say with a larger pool of nurses, they could offer greater flexibility to their staff.

"I can remember years ago when there were far more nurses... You used to be overstaffed and call them off and put them on call. Now, my director of ED works nights every weekend because we don't have enough staff.”

  • CNO of a southwestern community hospital with 49 beds

Shifting from a Reactive Strategy to a Proactive Solution

Executives should reframe how they handle nurse staffing and embrace diversified approaches to problem-solving to effectively address nurse staffing challenges.

It starts with perspective. Changing the way hospital and health system decision makers view nurses as part of their workforce ecosystem is just as crucial to finding the right solution as a willingness to embrace technology to increase nurse retention and satisfaction.

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1/3

Nearly one out of three health system executives view nurses as a “cost center.”

93%

93% of those surveyed do not believe being employed by a health system makes a nurse more valuable than working as an independent contractor.

60%

60% of CHROs and HR executives surveyed say platforms that enable rapid filling of per diem shifts would significantly impact their organization.

Beyond the financial solvency and workforce woes that keep healthcare executives up at night, nurse staffing problems also have a direct impact on local communities and population health.

Adopting a proactive strategy that improves nurse satisfaction while meeting organizational needs is crucial to relieving the pressure felt by clinical staffing shortages. With the right comprehensive plan in place – specifically, one that incorporates a tech-enabled solution that supports contract nursing –healthcare leaders have the power to achieve their own goals and improve the health of the communities they serve.

"We're backfilling a lot of this gap with new and young talent, but there's just not enough to overcome the overall need.”

  • CFO of a southeastern hospital with 600 beds

“Any time we look at increasing services amongst any specialties, we have to ask: do we have the nursing staff?”

  • CFO of a northeastern academic medical center comprising two facilities with 1,000 beds

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Facilities who use Nursa fill 3 times as many open per diem shifts, on average, compared to trying to fill the shifts themselves.

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About Nursa™

Nursa is a nationwide platform that exists to put a nurse at the bedside of every patient in need quickly and safely, removing the financial strain, administrative burdens and operational gaps of traditional staffing methods. Nursa’s real-time technology enables hospitals, health systems, skilled nursing facilities and community organizations to easily secure qualified, local clinical talent for per diem shifts with no upfront fees or restrictive contracts. Founded in 2019 and built on the bedrock granite of Lake Bonneville in Salt Lake City, Nursa is trusted by a growing community of more than 1,500 facilities and 229,000 nurses nationwide and is accredited by The Joint Commission.

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