In today’s healthcare landscape, nurse retention is no longer just an HR concern—it’s a strategic imperative. With the average cost of turnover for a single staff RN reaching $61,110 in 2025, and each 1% change in turnover costing hospitals an estimated $289,000 annually, health systems are under mounting pressure to stabilize their workforce and protect their bottom line.1
As healthcare organizations seek solutions to this pressing issue, Managed Service Providers (MSPs) are becoming increasingly valuable partners in creating environments where nurses want to stay and grow their careers.
Understanding the Retention Challenge
According to the latest NSI National Health Care Retention & RN Staffing Report (2025), the national RN turnover rate stands at 16.4%, with first-year nurse attrition climbing to 22.3%.1 These figures reflect a persistent challenge that impacts patient care, staff morale, and operational efficiency.
Why Traditional Approaches Fall Short
Many hospitals have leaned on short-term fixes—signing bonuses, overtime incentives, and reactive hiring. While these may offer temporary relief, they often fail to address the root causes of turnover: inconsistent staffing, poor onboarding, and lack of career development pathways.
Enter the Managed Service Provider (MSP)
A Managed Service Provider (MSP) offers a centralized, data-driven approach to workforce management. By consolidating staffing vendors, streamlining processes, and leveraging analytics, MSPs help healthcare organizations:
- Improve onboarding consistency
- Reduce time-to-fill for critical roles
- Enhance workforce planning with predictive analytics
- Ensure compliance and credentialing standards
- Provide visibility into workforce performance and trends
The Impact of Technology and Innovation
Technology can also play a major role in improving the nursing work environment by simplifying tasks like scheduling shifts or accessing patient records. MSPs understand this and therefore offer technological solutions to help healthcare facilities and their staff. These technological offerings may include:
- Digital scheduling systems that streamline shift management
- Mobile apps for easy schedule access and updates
- Electronic health records that reduce paperwork burden
- Communication platforms that enhance team collaboration
The Retention Impact
MSPs don’t just fill shifts—they build stability. By improving the quality and consistency of staffing, MSPs help reduce burnout, increase engagement, and ultimately lower turnover rates. For example, health systems that implemented MSPs have reported:
- Faster fill rates, reducing reliance on costly overtime
- Improved nurse satisfaction, due to better scheduling and support
- Lower first-year attrition, thanks to structured onboarding and mentorship
A Strategic Investment
In an era where every percentage point of turnover carries a six-figure price tag, investing in an MSP is not just a staffing solution—it’s a financial strategy. With the right partner, hospitals can shift from reactive hiring to proactive retention, ensuring continuity of care and long-term workforce sustainability.
Building a Sustainable Future
The role of MSPs in improving nurse retention continues to evolve with the healthcare industry’s changing needs. By focusing on creating supportive environments, offering professional development opportunities, and ensuring work-life balance, MSPs help healthcare facilities build stable, satisfied nursing teams.
Success in nurse retention requires a long-term commitment to supporting healthcare professionals. Ultimately, the investment in nurse retention through an MSP partnership can pay dividends in improved patient care, reduced turnover costs, and enhanced organizational stability.
Through partnership with experienced MSPs, healthcare facilities can develop and maintain effective retention strategies that benefit everyone – from nurses and physicians to administrators and patients.
To explore how MSPs can support your workforce strategy, visit Sunburst Workforce Advisors.
1 https://www.nsinursingsolutions.com/Documents/Library/NSI_National_Health_Care_Retention_Report.pdf
