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.
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