A longitudinal cost analysis of primary and team nursing

Cost findings from a 4-year (1984-1989) externally funded, empirical study, comparing primary and team nursing on medical units in a tertiary care teaching hospital, demonstrates that primary nursing is less costly than team nursing. An average savings of 6.5% was realized for the duration of the study. Three factors are identified as being responsible for the difference on a cost per patient per day basis. Overall, cost analysis per DRG from primary nursing suggests cost differences related to high DRG volume and average length-of-stay. An administrative review of the study's implications highlights the relevancy of these findings in relationship to nurse retention and cost savings.