The End of PHE: An Opportunity for Healthcare Staffing
Financial Shifts and Budget Adjustments in Healthcare Systems
As healthcare systems transition out of the pandemic, they are starting to adjust operational budgets. During the PHE, temporary funding sources and regulatory exemptions, including funds for COVID care and adjustments in Medicaid and Medicare allocations, provided significant financial support. However, as these resources return to pre-pandemic levels, hospitals may face more instances of unreimbursed services, making it imperative to focus on cost-effective staffing solutions. One such solution is to increase permanent staffing levels and resource pools to stabilize operations.
Travel Nurse Wage Fluctuations
The rise and fall of travel nurse wages during the pandemic offers a useful reference for the current staffing landscape. In January 2020, the national average weekly pay for travel nurses was approximately $1,896, which adjusted for inflation would be around $2,230 today. At the height of the pandemic, weekly pay surged to $3,782 in December 2021, an 84.5% increase over pre-pandemic levels. While this was advantageous for travel nurses, it placed significant financial pressure on hospitals and healthcare facilities.
However, recent wage data from late 2022 and early 2023 shows a marked decline in pay. In April 2023, the average weekly pay for travel nurses dropped to $2,494, a modest 12% premium over pre-pandemic rates when adjusted for inflation. In some states, current travel pay has fallen below the national average of January 2020.
Wage Reductions and Opportunities for Permanent Staff Roles
Wage reductions for travel nurses are evident across the country. Since December 2022, only two states have seen an increase in travel nurse wages, driven by local economic conditions. Conversely, 46 states have experienced wage reductions, ranging from 1% to 16%, with notable declines in states like Michigan, New Jersey, New Mexico, Oklahoma, and Pennsylvania.
With travel nurse wages now only 12% above pre-pandemic levels, healthcare systems have an excellent opportunity to attract RNs back into permanent roles, especially as they look for alternatives to expensive travel nurse salaries. Some organizations are experimenting with flexible scheduling, student debt relief initiatives, and childcare benefits to make permanent roles more appealing.
Addressing Workplace Concerns and Enhancing Nurse Retention
Our Future of Healthcare Work survey (Doximity) reveals that many RNs are grappling with fatigue, stress, and inadequate meal breaks due to staffing shortages. Many nurses are also being asked to take on extra shifts, which diminishes the flexible work-life balance often associated with travel nursing. Addressing these concerns and offering more support could play a significant role in improving retention and attracting nurses to permanent roles.
Proactive Staffing: The Key to a Supportive Healthcare Environment
As healthcare providers prepare for the upcoming fiscal year, now is the perfect time to focus on recruiting permanent staff. According to Health Affairs (Health Affairs), approximately 46% of clinicians who took travel contracts in 2022 plan to transition to permanent roles in 2023. By hiring proactively, health systems can foster a more supportive environment for both new hires and current staff, potentially encouraging travel nurses to return to permanent positions.
Organizations like GoodWork (GoodWork) can assist healthcare systems in this transition by streamlining the hiring process, verifying nurse credentials, and easing the administrative burdens of staffing.
Consider scheduling a demonstration with GoodWork today to see how we can help you recruit for permanent staff roles during this pivotal phase in healthcare.
