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Published on: February 16, 2011
A cost analysis of a professional practice model for nursing
Summary
Professional practice models (PPMs) in hospitals reduced overall nursing costs by using fewer temporary staff and aides. While RN costs were similar, PPMs offered savings in inpatient settings but increased costs in operating rooms due to higher RN utilization.
Area of Science:
- Healthcare Management
- Nursing Economics
- Hospital Operations
Background:
- Evaluating the financial implications of implementing nursing professional practice models (PPMs) is crucial for healthcare organizations.
- Traditional nursing units operate with different staffing models compared to those adopting PPMs.
- Understanding cost variations across different hospital units is essential for resource allocation.
Purpose of the Study:
- To compare the costs of nursing care in hospital units that adopted a professional practice model (PPM) versus traditional nursing units.
- To identify specific areas where PPM implementation impacts nursing expenditures.
- To analyze the cost-effectiveness of PPMs in diverse hospital settings.
Main Methods:
- Comparative cost analysis of nursing care expenses.
- Data collection from hospital units utilizing PPMs and traditional models.
- Segregation of costs by personnel type (RNs, temporary staff, aides) and unit type (inpatient, operating room).
Main Results:
- PPM inpatient units demonstrated lower total nursing costs compared to traditional units.
- PPM adoption led to reduced utilization of temporary personnel and nursing aides in inpatient settings.
- Operating room units adopting PPMs incurred higher nursing costs, primarily driven by increased Registered Nurse (RN) intensity.
Conclusions:
- Professional practice models can lead to overall nursing cost savings in inpatient hospital settings.
- The financial impact of PPMs varies by hospital unit, with operating rooms showing increased costs due to higher RN staffing.
- Strategic implementation and staffing adjustments are necessary to optimize the cost-effectiveness of PPMs across all hospital areas.
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