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The Nursing Human Capital Value Model.

Olga Yakusheva1, Kathryn A Lee1, Marianne Weiss2

  • 1Johns Hopkins University, School of Nursing, Baltimore, MD, United States of America.

International Journal of Nursing Studies
|September 24, 2024
PubMed
Summary

The economic value of nursing is redefined as the return on investment (ROI) in nursing human capital. Investing in nurses drives value creation, improving patient and organizational outcomes for sustainable healthcare.

Keywords:
Economic valueEconomicsHealthcare financeNursesNursing human capitalNursing practice environmentOperating marginReturn on investmentWorkforce development

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Area of Science:

  • Healthcare Economics
  • Nursing Management
  • Human Capital Theory

Background:

  • Current economic models frame nursing value through "outcomes-over-cost," often leading to budget cuts.
  • Nurse understaffing, burnout, and turnover jeopardize healthcare quality, equity, and affordability.
  • A new conceptual model is needed to accurately define nursing's economic contribution.

Purpose of the Study:

  • To propose a new conceptual model and definition for nursing's economic value.
  • To integrate human capital theory, production theory, and value theory into a unified framework.
  • To establish nursing as a value-adding human capital asset within healthcare organizations.

Main Methods:

  • Developed the "Nursing Human Capital Value Model" by synthesizing economic theories.
  • Defined nursing's economic value as the return on investment (ROI) in nursing human capital.
  • Illustrated a cycle of value creation driven by investment in nursing.

Main Results:

  • Nursing is conceptualized as a human capital asset crucial for healthcare production.
  • Nursing's economic value is redefined as ROI, linking investments to improved consumer, nurse, and organizational outcomes.
  • The model demonstrates a cycle where reinvestment in nursing fuels sustainable value generation.

Conclusions:

  • Investment in nursing human capital is essential for sustainable value creation in healthcare.
  • The Nursing Human Capital Value Model offers a new perspective applicable across diverse healthcare systems.
  • This model supports future research and highlights nursing's necessity for healthcare sustainability and growth.