94% of health system executives describe nurse shortage as "critical"

Report from Incredible Health gives inside look at how health systems are faring with the economic uncertainty and continued staffing crisis as 53% see nurses quitting in under 5 years

SAN FRANCISCO, June 13, 2023 /PRNewswire/ -- Incredible Health, the fastest-growing healthcare career marketplace for permanent healthcare workers, today unveiled the results of its 2023 Healthcare Executive Report, its first-ever public study of health system executives. The report - which solicited responses from 100 U.S. health system executives - reveals the challenging headwinds healthcare organizations face. A crushing 94% of respondents described the severity of the nursing shortage in their health systems as critical, and 68% said they do not have the adequate nursing staff to manage another large-scale health crisis.

"There are many reasons why health systems are struggling - including rising labor costs. They want to provide the best patient care possible and need to continue focusing on the patient experience during this time," said Iman Abuzeid, M.D, co-founder and CEO of Incredible Health. "The good news is that healthcare executives, specifically those charged with hiring nurses, are embracing the opportunity to change their hiring and retention methods to improve patient care and the nurse experience."

Experience and tenure 
A pressing issue related to hiring is the tenure of the average nurse. 40% of health system executives reported that more than a quarter of nurses in their system have less than a year of experience. This is in stark contrast to what hospitals are looking for when hiring nurses, with previous experience (43%) and qualifications (43%) tied for the top factor they consider. Overall, health systems reported that 53% of nurses had an average tenure of less than five years at their institution.

Misalignment between health systems and nurses
The study results reveal a large disconnect between what nurses look for in an employer and what employers offer to hire and retain nurses. Even though health systems reported 80% of younger nurses requested more flexible scheduling, only 11% of health system executives surveyed actually offer more flexible schedules. Few hospitals are looking to flexibility as a hiring differentiator, and are focusing more on compensation. Similarly, despite a quarter of nurses pointing to limited career advancement training and opportunities as a reason they would leave nursing before retirement, many health systems are not prioritizing these programs and opportunities as a hiring and retention method. Sign-on bonuses continue to be the primary method to attract nurses; more than one-third of hospital executives (35%) say they are still offering them. Increasing salaries for nurses (26%) and improving patient-to-staff ratios (16%) are other hiring techniques used to attract talent. Despite hospitals offering sign-on bonuses and higher salaries to attract talent, Incredible Health's 2023 State of U.S. Nursing Report found that only one-third (33%) of nurses feel fairly compensated in their roles.

Generational chasm
The U.S. nursing workforce is made up of four generations, from Gen Z to Baby Boomers, with an average age of 52 years. It is no surprise that nearly all (95%) health system executives have noticed generational differences within their nursing workforce in their approach to work and career growth. While over one-third (35%) point to conflicts between generations on teams, the majority of differences lie in what younger and older generations request from their employers. In addition to far more flexible schedule requests from younger nurses, there are also large gaps in compensation demands (78% of younger nurses request increases vs. 48% of older nurses), seeking more specialized roles (54% vs. 14%), and requiring more career advancement opportunities (74% vs. 8%). Over three-quarters (79%) of executives pointed to a reduction in loyalty and tenure with younger nurses, in contrast to 21% in older nurses.

Travel nurses remain a band-aid solution
Almost all (93%) health systems utilize travel nurses to keep up with patient demand. Nearly two-thirds of respondents (75%) noted that temporary nurses make up a quarter of their nursing staff. This is a reality that executives are eager to change, as temporary staff significantly impacts the health system's bottom line with high costs, as well as a negative impact on the quality of patient care and culture in nursing units. Nearly all health system executives (96%) reported plans to prioritize permanent nurse staff over temporary staff. In fact, 55% of respondents did not increase the number of travel nurses within their hospital systems over the last year.

Health systems use Incredible Health to quickly hire and retain top, permanent nursing talent while saving at least $2M per year per facility in travel nurses, overtime, and HR costs. The hiring timeline is only 20 days, versus the national average of 80 days. One in four nurses in the United States uses Incredible Health to manage their careers, and the company partners with 700 hospitals, including 75% of the nation's top-ranked health systems. Nurses hired via the platform have a 15% higher 1-year retention rate than the hospital's baseline.

The full 2023 Healthcare Executive Report, with more data on travel nurses, artificial intelligence (AI) in hiring, and factors impacting the supply of nurses, can be found here. Resources for health systems can be found here, and resources for nurses can be found here.

About Incredible Health
As a career marketplace for permanent healthcare workers, Incredible Health puts nurses in the driver's seat. Hospitals apply directly to nurses rather than the other way around. The first and only platform to focus on permanent employees rather than contractors, Incredible Health is already used by over 700 hospitals nationwide. Incredible Health's proprietary algorithm-based technology custom matches the needs of hospitals with the right nurses. Co-founded by MD and Wharton alum Iman Abuzeid and MIT alum from a family of nurses, Rome Portlock, Incredible Health is headquartered in San Francisco, CA, and operates nationally.

Contact:
Inkhouse for Incredible Health
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SOURCE Incredible Health