The all-in cost of a full-time direct care hospital registered nurse is on average $98,000 each year or $45 per hour, according to results from KPMG's 2011 U.S. Hospital Nursing Labor Costs Study.
Of the average labor cost of a full-time RN, only $55,739 is base wages. Fully-loaded payroll, which includes base wages, employer taxes and paid time off represents 76-78 percent of the total cost of a hospital's RN labor force.
The balance comes from non-productivity costs (12-13 percent), insurance costs (8-9 percent), recruiting costs (1-2 percent) and other costs (1 percent). The report noted non-productivity costs include non-productive labor hours, attrition and time required to fill a permanent direct care RN position.
Altogether, the actual cost per hour for a full-time RN is on average 176 percent of their base hourly wage, the report says.
Read the KPMG report about hospital RN labor costs.
Related Articles on Hospital Finances:
Audit Forces Texas' Valley Baptist to Pay Employees Back Wages
Voters Approve Parcel Tax for California's Trinity Hospital
Improving Revenue Cycle Can Yield Big Savings for Hospitals
Of the average labor cost of a full-time RN, only $55,739 is base wages. Fully-loaded payroll, which includes base wages, employer taxes and paid time off represents 76-78 percent of the total cost of a hospital's RN labor force.
The balance comes from non-productivity costs (12-13 percent), insurance costs (8-9 percent), recruiting costs (1-2 percent) and other costs (1 percent). The report noted non-productivity costs include non-productive labor hours, attrition and time required to fill a permanent direct care RN position.
Altogether, the actual cost per hour for a full-time RN is on average 176 percent of their base hourly wage, the report says.
Read the KPMG report about hospital RN labor costs.
Related Articles on Hospital Finances:
Audit Forces Texas' Valley Baptist to Pay Employees Back Wages
Voters Approve Parcel Tax for California's Trinity Hospital
Improving Revenue Cycle Can Yield Big Savings for Hospitals