KPMG’s 2017 U.S. Hospital Nursing: Labor Costs Study
Executive Summary
This study identifies several trends and benchmarks in relation to hospital nursing labor costs in the United States. Some of the key findings are summarized below. When all costs are considered, traveling nurses appear to cost less than permanent nurses on an hourly basis. Cost data provided by hospitals indicates that the hourly, all-in cost for a full-time, permanent nurse is approximately $89. This hourly cost is higher than traveling nurses that cost approximately $83 per hour. Key costs that are after captured in this all-in measure are overtime pay, paid time off, retirement, insurance, recruiting, and payroll taxes – and these costs vary by nurse type. Additionally, the survey finds a quantifiable “hidden” cost associated with permanent nurses that is the result of non-productive labor hours, and an unquantified “hidden” cost associated with attrition and time required to fill a permanent direct care registered nurse position. Respondents to the survey indicated that traveling nurses are widely used today, representing approximately 11 % of respondent’s nursing staffs. Also, these hospitals indicated their use of traveling nurses will likely continue to grow in the future. Primary factors for this upward trend are local nursing shortages and facility growth. In all, traveling nurses appear to be a cost effective source of labor tor hospitals, and hospitals are forecasting higher usage of these nurses in the future.