Demand for temporary agency nurses and nursing shortages

Area of Science:

• Healthcare Management
• Nursing Economics
• Labor Relations

Background:

• The increasing utilization of temporary registered nurses (RNs) is a significant trend in healthcare.
• A debate exists regarding the primary drivers: efficiency incentives versus RN shortages.

Purpose of the Study:

• To investigate the factors influencing hospital demand for temporary RNs.
• To differentiate the impact of RN shortages from other economic factors.

Main Methods:

• Analysis of hospital-level data from California's Office of Statewide Health Planning and Development.
• Statistical examination of the correlation between demand for agency nurses and variables like inpatient days, patient demand fluctuation, and fringe benefits.

Main Results:

• A significant increase in demand for agency nurses was observed during periods of RN shortage.
• Demand for temporary RNs positively correlated with inpatient days, patient demand fluctuation, and fringe benefit levels.
• Hospital competition and unionization did not significantly impact the demand for temporary RNs.

Conclusions:

• RN shortages are a primary driver of temporary RN employment growth.
• Hospitals utilize agency nurses to manage fluctuating patient demand and benefit competition.
• Efficiency incentives may play a lesser role compared to actual workforce shortages.