The cost of vacancies in healthcare is high. Employee turnover for nurses alone costs the average U.S. hospital between $5.2 million and $9 million a year.1 In today’s competitive healthcare landscape, filling open positions is more crucial than ever. Yet, many healthcare organizations struggle with chronic staffing shortages. While the immediate impact of an open role might seem like an inconvenience, the true cost extends far beyond just an empty seat. It affects your organization’s financial health, operational efficiency, and, most importantly, patient care.
The Financial Impact of Unfilled Roles
Unfilled healthcare positions have a significant financial impact on your organization’s bottom line. The total cost of vacancy includes both hard and soft costs:
Hard Costs
The hard cost of an unfilled healthcare role is the combination of the loss of revenue and any compensated overtime hours from another employee to fill in the gaps of the empty seat. Many times, this number is far higher than you originally anticipated.
Research suggests that a vacant healthcare position can cost an organization an average of $8,000 per day.2 After three months, this cost can go up to $14,000 daily.3 Costs are significantly higher for specialists too: An unfilled position in neurosurgery costs a hospital $66,000 a week, and an unfilled gastroenterology job costs $57,000 a week.
Soft Costs
The soft costs of a healthcare vacancy come in the form of reduced employee satisfaction and sub-optimal performance. A nurse working overtime to cover a vacancy is more likely to suffer from burnout and low job satisfaction. Of nurses considering leaving their positions, 61% cite staffing shortages as the primary reason.1 This means that current open nursing positions are likely to heighten the problem and cause additional turnover in the future.
Facilities with unfilled job openings may also suffer from a poor reputation. Patients may face long ER wait times due to short staffing, which creates a negative impression of the entire facility. Patients may also leave the healthcare system entirely if they can’t find an appropriate specialist within the organization.
Failure to maintain adequate staffing ratios can even expose your organization to legal liabilities. In an Arkansas case that concluded in 2017, a nursing home chain that failed to maintain proper staffing levels settled with the plaintiffs for a total of $71,986,816.4
The Impact on Patient Care
In healthcare, the cost of vacancy extends far beyond the financials. When positions are unfilled, patient care suffers.
Increased wait times: With fewer staff, patients experience longer wait times for appointments, procedures, and treatment. This can lead to delayed diagnoses and treatment, worsening patient conditions, and increasing the risk of complications. From 2020 to 2021, the average ER wait time increased from 194 minutes in 2021 to 211 minutes in 2022.5
Reduced access to care: Unfilled positions can mean limited service availability. This can be particularly detrimental in specialty areas where access to qualified providers is already limited. Patients may be forced to travel long distances for care or seek treatment from less qualified providers.
Compromised quality of care: Overworked staff can lead to burnout and a decline in the quality of care provided. Studies have shown that understaffed hospitals have higher rates of patient infections, readmissions, and mortality. For example, a study of pediatric hospitals found that each one-patient increase in the hospital’s average pediatric staffing ratio increased 15- to 30-day readmissions by 11% for a medical child and 48% for a surgical child.6 A study of Pennsylvania hospitals showed a significant correlation between the patient-to-nurse ratio and urinary tract or surgical site infections. Hospitals that reduced nurse burnout by 30% had over 6,200 fewer infections and saved $68 million.7
Infections and readmissions aren’t the only risk in an understaffed hospital. Mortality risk increases by 12% for non-ICU patients in a hospital with below-target registered nurse staffing levels. Just one additional RN per 1,000 inpatient days lowers patient mortality by over 4%.8
Introducing Medix’s Healthcare Cost of Vacancy Calculator
Medix’s Healthcare Cost of Vacancy Calculator is a powerful shortcut to calculating the cost of your open healthcare positions. Understanding the full impact of open positions is crucial for making informed decisions about staffing strategies. In just 2 easy steps, this free tool will provide you with the total cost of your vacancy, including potential savings in payroll and benefits.
Take Action To Reduce the Cost of Vacant Positions
Beyond calculating the cost of vacancy, Medix can provide you with the tools and expertise to address your staffing challenges head-on. Our comprehensive solutions include:
Develop a comprehensive recruitment strategy: We can help identify the right talent, attract qualified candidates, and streamline the hiring process. This involves leveraging our extensive network of healthcare professionals, utilizing targeted recruitment campaigns, and providing expert guidance on job postings and interviews.
Improve retention efforts: We offer flexible staffing models tailored to your specific needs, including contract, contract-to-hire, and full-time staffing. This allows you to scale your workforce as needed while ensuring continuity of care and minimizing the disruption caused by frequent turnover. Additionally, we prioritize hiring culture fits, carefully matching candidates with your organization’s values and goals. This fosters a positive work environment and increases employee engagement, leading to higher job satisfaction and reduced turnover.
Partner With a Dedicated Staffing Agency To Keep Vacancies Low
At Medix, we’re committed to helping healthcare organizations better understand the true costs of staffing needs so they can take action to provide a better experience for patients and healthcare professionals alike. Use our Healthcare Cost of Vacancy Calculator for deeper insights into the financial implications of unfilled healthcare roles, then contact us to learn more about how we can help.
