An Incentive Pay Plan for Advanced Practice Registered Nurses: Impact On Provider and Organizational Outcomes

Area of Science:

• Healthcare Management
• Nursing Economics
• Health Services Research

Background:

• Advanced practice registered nurses (APRNs) are crucial for delivering quality, cost-effective healthcare across all care settings.
• High turnover rates among APRNs can negatively impact patient care and increase healthcare costs.
• Job satisfaction is a key factor in retaining APRNs within healthcare institutions.

Purpose of the Study:

• To develop and evaluate an incentive plan designed to enhance APRN job satisfaction and reduce turnover.
• To align APRN compensation with clinical productivity and quality of care metrics.
• To assess the financial impact of the incentive plan on healthcare institutions.

Main Methods:

• Formulated an incentive plan for APRNs incorporating productivity and quality measures.
• Measured clinical productivity using national benchmarks for work relative value units (wRVUs) specific to nonphysician providers.
• Implemented the plan and analyzed its effects over the first year.

Main Results:

• APRNs received increased compensation for enhanced productivity and quality performance.
• The healthcare institution observed a significant rise in patient visits.
• Total patient charges also increased following the implementation of the incentive plan.

Conclusions:

• The developed APRN incentive plan successfully increased APRN compensation based on performance.
• The plan led to positive financial outcomes for the employing institution, evidenced by increased patient volume and revenue.
• This incentive model presents a mutually beneficial ('win-win') strategy for hospitals employing APRNs.