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Travel Nursing: A Bad Deal for Health Systems and Nurses

Published June 29, 2022
A travel nurse reviewing notes on a tablet

Travel nurses were essential to supplement staffing levels when patient census surged across the country. Incentivized by lucrative pay, travel nurses entered high-risk environments, providing critical support when COVID-19 was rampant.

However, the reliance on travel nurses has evolved into a double-edged sword. While they were indispensable during the peak of the pandemic, healthcare organizations are now grappling with the ongoing financial strain caused by a massive nursing shortage. The dependence on costly travel nurses is not only unsustainable but also detrimental to both health systems and the nurses themselves.

The Problem with Travel Nurses in Health Systems

While hiring travel nurses was a model once successful in filling temporary positions, the current landscape presents significant challenges. Hospitals and lawmakers argue that travel nursing agencies are now “capitalizing on the current labor shortage to increase their profits,” placing undue financial strain on healthcare systems.

Financial Strain on Hospitals

Travel nursing comes with a hefty price tag. Travel nurses typically command higher wages compared to their full-time counterparts, often including additional perks such as housing stipends, travel reimbursements, and other incentives. This can significantly inflate staffing costs for healthcare facilities. According to recent reports, these elevated fees can strain hospital budgets, diverting funds from other critical areas such as patient care improvements and facility upgrades.

 

Legal and Regulatory Challenges

Contracting through nurse travel agencies also introduces legal complexities for healthcare facilities. If a staffing company faces a lawsuit, hospitals may bear some liability for the contracted nurses, further complicating an already highly regulated industry. This shared liability can lead to costly legal battles and damage the hospital's reputation.

Healthcare facilities must also navigate a complex web of regulations. Agencies may not always adhere to the same standards as in-house staff, and discrepancies in compliance can create issues for hospitals. Ensuring that travel nurses meet all regulatory requirements and align with facility policies can be a significant administrative burden.

Pay Inequity and Ethical Concerns

The substantial pay gap between staff and travel nurses creates a disparity that raises ethical questions about fair compensation. As one nurse states, “When you’re working next to somebody that’s making quite that much more than you, and you’re doing the exact same job, it feels a little bit dystopic.” This pay inequity can lead to resentment and demoralization among full-time staff, further exacerbating retention issues.

Unstable Workforce Dynamics

The transient nature of travel nursing disrupts the continuity of care. Frequent turnover of travel nurses can lead to inconsistent patient care and hinder the development of cohesive healthcare teams. Permanent staff may feel demoralized by the constant influx of temporary workers, leading to increased burnout and turnover among core nursing staff.

Quality of Patient Care

The quality of patient care can be affected when there is a high turnover of staff. Travel nurses, despite their expertise, may take time to acclimate to new environments, impacting the efficiency and effectiveness of care delivery. Continuity of care is crucial for patient outcomes, and frequent staff changes can hinder this continuity.

The Importance of Full-Time Nurses

Consistency in Care Delivery

A stable, full-time nursing staff offers continuity of care that is crucial for optimal patient outcomes. Permanent staff members are more likely to develop strong relationships with patients, understand their specific needs, and provide consistent, high-quality care. This continuity fosters trust and improves the overall patient experience.

Reduced Burnout and Stress

Full-time nurses benefit from a more predictable work schedule and less frequent rotation of new colleagues. This stability can help reduce burnout and stress, leading to higher job satisfaction. Consistent staffing levels allow for manageable workloads and adequate breaks, improving overall well-being and reducing turnover rates.

Improved Team Dynamics

Having a permanent team allows for the development of strong interpersonal relationships and effective communication among staff members. A cohesive team can work more efficiently, support each other, and contribute to a positive work environment. This stability enhances teamwork and collaboration, which is vital for complex patient care and problem-solving.

Quantum Workplace shares that a lack of stability in the workplace can prevent an employee's ability to focus, adapt, and thrive. This instability not only creates a sense of physical insecurity but also affects psychological well-being, leading to distrust in the organization's future. Such distrust can significantly impact employee retention, as staff may feel uncertain about their long-term prospects.

Alignment with Organizational Goals

A dedicated, full-time nursing workforce allows healthcare facilities to align staffing levels with their long-term strategic goals. With a stable team, organizations can better plan for future needs, invest in professional development, and implement quality improvement initiatives. This strategic approach ensures that the workforce supports the facility's mission and objectives.

Hueman RPO's Travel Nurse Reduction Program

Hueman's Traveler Reduction Program significantly decreases premium labor costs for healthcare facilities, offering long-term savings and financial peace of mind. 

We leverage over 28 years of experience in RN recruitment and dedicate recruiting resources to your traveler positions to help you escape from high premium labor spending. Using our seven-step program, our recruiting teams focuses their efforts solely on replacing travel nurses at your organization. We use advanced sourcing and networking skills to build a robust nurse pipeline for your existing and upcoming requisitions.

The Travel Nurse Reduction Program saves an average $3 million in the first year, with an average of $700k saved when an organization reduces ten travelers with staff nurses.

Ready to reduce your travel nurse costs? Visit out our dedicated solutions page or contact us today.

  • Topics: 
  • Healthcare,
  • Talent Management
Post by Derek Carpenter

EVP, Strategic Partnerships

Hi, I’m Derek: I bring a consultative approach to designing customized talent acquisition solutions for our partners, driving true value to organizations. I’m passionate about talent acquisition, specifically in RPO Solutions and have been at Hueman for over 11 years.

Career & Achievements: I have 19+ years of Leadership experience spanning several industries including telecommunications, real estate, sports technology and healthcare. I’m also a Hueman Core Value winner and have served on the Children’s Home Society Board of Directors since 2016.

What’s Most Important: Family! They have my heart and soul. There are a lot of friends who are also my family… this life is all about connecting with people.