2025 NSI National Health Care Retention & RN Staffing Report
Executive Summary
With people living longer, the subsequent rise in chronic conditions and the fact that all Baby Boomers will reach retirement age by 2030, recruiting and retaining quality staff will continue to be a top healthcare issue for years to come. Last year, hospitals increased staff by adding ~304,000 employees, a 5.4% add rate. Of this, ~98,000 RNs were hired which represents a 5.6% RN add rate.
Hospital and RN turnover continue to fall but both remain slightly elevated. Nationally, the hospital turnover rate stands at 18.3%, a 2.4% decrease from CY23, and RN turnover is recorded at 16.4%, a 2.0% decrease. Registered Nurses working in pediatrics, women’s health, and surgical services reported the lowest turnover rate, while nurses working in behavior health, step down and emergency services experienced the highest.
The cost of turnover can have a profound impact on diminishing hospital margins and needs to be managed. According to the survey, the average cost of turnover for a bedside RN is $61,110, an 8.6% increase, resulting in the average hospital losing between $3.9m – $5.7m. Each percent change in RN turnover will cost/save the average hospital an additional $289,000/yr.
The RN vacancy rate also remains elevated at 9.6% nationally. While 0.3% lower than last year, over forty percent (41.8%) reported a vacancy rate of ten percent or more. The RN Recruitment Difficulty Index decreased three (3) days to an average of 83 days. In essence, it takes approximately 3 months to recruit an experienced RN, with step down and med/surg presenting the greatest challenges. Feeling financial stress, hospitals will continue to focus on controlling the high cost of labor with contract labor being a top strategy to navigate a staffing shortage. The greatest potential to offset margin compression is in the top budget line item (labor expense). Every RN hired saves $79,100. An NSI contract to replace 20 travel nurses could save your institution $1,582,000.