Overtime vs. temporary staffing: How using an IRP can save money
August 14, 2014 by Vickie Anenberg
Local nursing shortages have forced many healthcare facilities to make a decision between paying overtime wages and hiring temporary nurses to fill the void at a base wage.
Paying overtime wages to a full-time registered nurse can cost a healthcare facility as much as $98,000 a year when you include base wage, payroll taxes, overtime pay, holiday pay, pension contributions, training costs, recruiting costs and training education. Compare that number to the $56,000 a year average base salary for nurses, according to the National Association of Travel Healthcare Organizations (NATHO).
According to the NATHO study, which collected responses from 120 hospital executives, the top three reasons healthcare facilities turn to temporary nurses are:
- Seasonal needs
- Local nursing shortages
- Facility growth
Another study by the University of Pennsylvania examined more than 1.3 million patients and 40,000 nurses in over 600 hospitals. It concluded that temporary nurses could be lifesavers during times of local nursing shortages. Higher nurse workloads lead to increased mortality rates. By implementing an internal resource pool (IRP), your organization can keep nursing workloads down by effectively managing resources from within your organization and between the specific healthcare facility and relative system.
Cross Country Staffing provides an IRP consulting service to help your healthcare facility develop an IRP into your unique work environment. This cost-effective staffing tool helps healthcare facilities reduce their dependency on staffing agencies, minimize excessive overtime pay and align target staffing ratios with fluctuating census demands.
Learn more about Cross Country Staffing's IRP consulting service and how your healthcare facility can achieve a collaborative scheduling and staffing model within your internal staff.