Continuing turnover among nursing staff can cost hospitals between 5.2 million and $9 million.
University of Michigan Health West—a healthcare provider with over 208 staffed beds and more than $1 billion in total patient revenue—has teamed up with Grand Rapids Community College to offer a program designed to help nursing students finance their education and at the same time fill a critical labor shortage.
"By removing cost barriers—including for adult learners and others who need to continue working while finishing their education—the program creates and nurtures a diverse pipeline of local healthcare talent," Dr. Peter Hahn, UMH-West CEO, said in an emailed press release. "We see this as an investment not just in our workforce but in West Michigan itself. This is a way to ensure that the new generation of rising healthcare leaders reflects the communities we serve."
The program was launched this month and was made possible thanks to a grant from the University of Michigan Health-West Foundation. Students who have completed one semester of GRCC’s Nursing Program can apply for the program and have up to three semesters of their GRCC tuition paid by UMH-West. They must commit to working at UMH-West for two years upon completion of the GRCC program and becoming licensed as registered nurses. During their employment with UMH-West, the organization will support the completion of a bachelor’s degree in nursing through existing partnerships and tuition reimbursement.
Hospitals and health systems across the U.S. are dealing with a shortage of nurses and have started relying on travel nurses, which are a greater expense than having their own RNs on staff. The U.S. Bureau of Labor Statistics predicts more than 203,000 openings for registered nurses each year through 2031. This continuing turnover can have a dramatic financial impact on organizations. The average cost of turnover for a bedside RN is $46,100 resulting in the average hospital losing between $5.2 million and $9 million, according to research from NSI Nursing Solutions.
The program aims to get 10 to 15 nursing students to sign up in December and graduate in April 2023. The program seeks to enroll 10 more nursing students each of the next three semesters: December 2023, April 2024, and December 2024.
"Partnerships make communities stronger," Dr. Juan Olivarez, GRCC’s interim president, said in the same release. "This program’s innovative approach is a great example of how working together creates opportunities for students while helping healthcare providers and our greater community."
Amanda Schiavo is the Finance Editor for HealthLeaders.