Stats show RN salaries may have reached a plateau
Nursing salaries may be leveling out as reported by Advance for Nurses. An on-line study collected salary data of 7500 nurses across the United States which indicated that salaries may have reached a plateau. The report shows an annual drop of $3000 in nursing salaries this year compared to 2007. There are other indicators that suggest the nursing shortage is also tapering off. Experts say that one reason is the large number of nurses that are at the top of their facility pay scale who are now only getting an annual cost of living adjustment.
Connie Curran, EdD, RN, FAAN and editor of Nursing Economic$ believes that these numbers are an accurate reflection of what is happening in the nursing community and attributes the drop in salaries to the poor financial performance of hospitals.
With the advent of stringent reimbursement rates that insurance companies are implementing coupled with no payments for in-hospital preventable complications, hospitals are now under the gun to tightening their belts.
The average hourly wage for nursing in 2006 based on data from the U.S. Bureau of Labor was a disappointing $25.60. In July of 2007 the National Association of Healthcare Recruiters discussed several options to entice experienced nurses to stay in the acute care setting as many of them are now opting out for positions with fewer hours and better working conditions, such as retail clinics and insurance companies. Connie Curran, EdD, RN, FAAN, from Nursing Economics estimates that some 200,000 nurses are now in transition away from the acute care setting.
If indeed nursing salaries are leveling off what effect will this have on the healthcare industry? Is the nursing shortage peaking as well? I am not sure that the data from the 7500 respondents to Advance’s survey can be extrapolated to make a generalized statement regarding nursing compensation or the current nurse shortage. However if this data does support other industry trends the results may be concerning for healthcare facilities that are trying to attract experienced nurses or keep their present staff from vacating their current positions.
Certainly this bears watching, especially when the demand for healthcare services is likely to continue to increase as the population ages. More concerning is the mean salary based on U.S. Labor statistics which puts nursing compensation at just over $53K perannum as of 2006. In light of the fiscal hardships that many healthcare facilities are experiencing – some more than others – it demands that nursing improve consumable resource management as well as documentation of care so that optimal reimbursement potentials are realized. Additionally it is imperative that all members of the healthcare team pay close attention to quality efforts to maximize care and mitigate preventable harm. Avoidable complications in care can not be allowed to continue. The fiscal impact on healthcare facilities will be to great. Nursing must act now to improve the profit margins of hospitals if salaries are to do more than adjust for annual cost of living.
About the Author
Mike Pringle provides regular commentary for Red Scrubs and editorial content for Future Healthcare. He has over 20 years of nursing experience working both domestically and internationally. Mike has a Bachelor’s Degree in Nursing and a Masters Degree in Public Administration with a healthcare emphasis. He specializes in both Emergency and Critical Care Nursing. Mike has held positions ranging from department staff and Nurse Manager to Executive positions.
