About the writer
The "Alpha" factors
Earnings of RNs
The cost of Understaffing
What Industry Leaders say
Foreign Nurses , The Traditional Salve
story of financial growth by an HMO and one of its MD founders [Dr. Hasan]:
Another item that rankles is salary differences.Permanent staff nurses at Hopkins Hospital earn an average base rate of $22 per hour. Hopkins pays the agencies that provide temporary nurses about twice that rate. (Just how much of that money ends up in the hands of the temporary nurses is not clear.) " Nationwide Nursing Crunch. Johns Hopkins Magazine. June 1999.
"Last year, Gail Warden
had at least two headaches he wanted to get rid of. As president and CEO
of the Henry Ford Health System in Detroit he wanted to make Henry Ford
Hospital profitable and drive down losses at its medical group. He decided
it was time for harsh medicine: He called The
1999-2000: "Despite the nurse shortage,
employers have yet to respond by raising nursesŪ salaries dramatically.
Median weekly wages for RNs increased 1.8 percent from 1999-2000, to $790...Over
the past five years, RNs have seen an increase of only 0.8 percent, while
real wages for the general workforce have risen 6.6 percent."
2000-2001: "Hospitals are experiencing
severe workforce shortages.› There are more than 168,000 unfilled positions,
of which 75 percent are for registered nurses.› Partly as a result of these
shortages, full-time nurse salaries rose by as much as 10 percent across
the country from 2000 to 2001; pharmacist salaries rose by as much as 13
percent.› It is estimated that hospitals will have spent $71 million
in 2001 using agency and traveling nurses to fill slots left vacant by
the shortage of staff nurses."
Those kinds of results
have helped the St. Petersberg, Fla.-based healthcare management consulting
firm more than double its revenues in recent years. The Hunter Group
raked in revenues of $25 million in 2001-up from $10-$13 million in the
mid-1990s-and grew from three employee-owners in 1987, the year of its
founding, to 15 owners and about 45 full-time staff members today.
"Our reputation and our references support the magnitude of results that
our clients have been able to achieve with our support...and to sustain
over the long term," says David Hunter, Hunter Group CEO.
"According to a new report in Hospitals
& Health Networks, hospital compensation packages are up 6.6% over
last year. Nurses led the way with an 8.1% increase in base salary, and
incumbent hospital CEOs checked in with a 7.5% salary increase. Other executives
saw a 6.2% base salary jump and the salaries of hospital department heads
rose 5.9%. According to the statistics, base salary levels are higher than
ever. In 1999, base salaries rose 3.8%, in 2000 they jumped
3.6% and the 2001 data revealed a 4.1% hike. The median CEO base salary
for 2002 is $237,000, but total cash averages paid to CEOs -- base plus
incentives -- increased 13.4%.
All data were gathered and analyzed
by the Hay Group, in cooperation with the America Society for Healthcare
Human Resources Administration. For more information go to http://www.hhnmag.com"
Nurses lead hospital salary increases September 16, 2002. From the
American Hospital Association webpages at AHANews.com
"At age 51, Miami Children's Hospital
was having trouble deciding what it wanted to be when it grew up, says
President and CEO Tom Rozek, who arrived in January 1999. It was trying
to be all things to all people and was paying the price. The 268-bed hospital
suffered a string of losses in the mid-'90s. By fiscal year 1998, it was
$22.3 million in the hole.Hospital figures for the past two years are
impressive. While the hospital took a loss of $2.3 million for 1999, it
earned $17 million in 2000, and unaudited figures show that it made $9
million in 2001. The hospital now receives $4.5 million each year for
its residency program from the National Association of Children's Hospitals.
It also sees an additional $10 million each year in reimbursements on its
25 managed care contracts. Patient volume has also increased due to better
physician relationships, Rozek observes. Down the road, Rozek says, the
hospital will have to stay on top of its communication practices so the
community remains aware of the services Children's provides. "If we don't
get federal and state funding, and support from philanthropy, we still
will have difficulties."
Long Term Care:
"...in a healthy economy, nurses, pharmacists,
and other health care workers often leave hospital practice and post-acute
facilities for other settings that meet their salary and family needs and
are less stressful. Other significant factors driving staff away from hospitals
and making health care a less attractive field for students are the diminished
time for bedside care and increasing responsibility for regulatory paperwork
and compliance. "
"Many federal, state and private organizations
have begun searching for ways to forestall the 2010 healthcare crisis,
or at least cushion its impact. The American Organization of Nurse Executives
published a study, "Perspectives on the Nursing Shortage: A Blueprint for
Action," which covered most of the remedies proposed so far.