STUDY: 94% of health system executives describe nurse shortage as “critical” in 2025

New analysis reveals disconnects between nurse expectations and hospital strategies

A new 2025 report by Incredible Health underscores what many nurses have already experienced firsthand: the national nurse staffing crisis is worsening. The Healthcare Executive Study, based on responses from 100 senior leaders at U.S. health systems, reveals that 94 percent of executives now classify the nursing shortage as critical. Even more concerning, 68 percent admit they are unprepared to handle another public health emergency with current staffing levels.

This study marks the first public-facing analysis by Incredible Health to focus on hospital leadership, building on data from more than 700,000 U.S. nurses previously surveyed.

Executive Takeaways: Gaps in Staffing and Strategy

While many hospitals continue to offer sign-on bonuses, shift differentials, and higher base pay to attract nurses, the study reveals that leadership often underestimates what frontline staff actually need to stay.

Key findings include:

• 53 percent of nurses at responding health systems have less than five years of tenure
• 40 percent of executives report that one in four nurses on staff has less than one year of experience
• Despite 80 percent of younger nurses requesting flexible scheduling, only 11 percent of executives offer it as a standard option

Hospitals continue to lean heavily on recruitment incentives like:

• Sign-on bonuses (35 percent of systems)
• Salary increases (26 percent)
• Improved patient-to-staff ratios (16 percent)

However, career development and clinical growth pathways, which younger nurses rank as top retention priorities, remain underutilized by most employers.

A Generational Shift in Expectations

The report highlights a growing divide between Baby Boomer-era leadership and Gen Z or Millennial nurses. The average nurse in the U.S. is 52 years old, spanning four generations of professionals with different values and communication styles.

Notable disparities include:

About 35 percent of health executives report challenges managing generational conflicts within units. Most cite differing expectations around compensation, shift control, and communication norms as the leading cause.

The Role of Travel Nurses and Temporary Staffing

In the short term, travel nurses continue to be a major part of the workforce. 93 percent of hospitals currently rely on travel clinicians to meet patient demand. But most executives are eager to shift away from this model.

• 96 percent of executives say they are working to reduce dependency on contract labor
• 55 percent of health systems did not increase travel nurse usage in the last year
• Nearly three in four executives report that travel nurses make up at least 25 percent of their current nursing staff

The financial cost of relying on temporary labor, along with concerns about unit culture and continuity of care, is driving renewed investment in permanent staff hiring.

A Better Way Forward

Bridging the gap between leadership strategies and nurse priorities could reduce turnover and improve patient outcomes. That starts by understanding what today’s nurses want: flexibility, career growth, fair compensation, and support in high-pressure environments.

Hospitals such as Cedars-Sinai, UCSF Health, and NYU Langone Health are already experimenting with new staffing models that align better with nurse values.

Incredible Health, the company behind this research, reports that its partner hospitals save an average of $2 million per year in staffing costs while cutting time-to-hire for permanent nurses by 25 days. Their network includes more than 700 hospitals, including 75 percent of the nation's top-ranked systems.

📖 Read the full report here: Incredible Health 2025 Healthcare Executive Study

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