KPMG: Labor Cost for Full-Time RN Equal to $98K a Year

Listen
Text
  • Small
  • Medium
  • Large
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

Copyright © 2021 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars