Healthcare professionals are in more demand than ever, with the demand expected to exceed supply by 9 percent over the next decade. Staffing shortages across the healthcare industry have required facilities to find creative solutions to meet staffing needs. Travel nursing has long been one of those solutions, but the underlying assumption has often been that this model is more expensive than traditional staffing and permanent roles.
According to a recent study by the National Association of Travel Healthcare Organizations (NATHO), travel nursing can actually often be a more affordable solution than traditional staffing when all costs and factors are considered.
Comparing traditional staffing and travel nursing costs isn’t an apples-to-apples conversation. As the healthcare industry continues to shift and settle in the wake of the COVID-19 pandemic, a clearer picture of travel and permanent staffing costs is slowly emerging. This data, like the NATHO study, is clarifying the true costs of both travel and traditional nursing hires, and the results differ from common perceptions.
The Surprising Savings of Travel Healthcare Staffing
Staffing shortages are a growing issue for most healthcare facilities, and patient needs are also rising. With an aging population, a growing prevalence of chronic diseases, and a greater need for flexible healthcare offerings, healthcare facilities face mounting pressure to meet staffing needs creatively. Travel nursing has been a strategic step in filling those gaps, but has also long been assumed to be more expensive than traditional staffing.
A recent survey of 100 healthcare executives in the United States showed that travel labor delivers measurable savings and value when all “baked-in” or “fully-loaded” costs are considered. For comparison, all-in costs for travel nurses averaged $89/hour while permanent nurses averaged $94/hour. Travel therapy positions and allied health professionals were also shown to be less expensive than their permanent counterparts.
Some of the factors that contribute to this cost difference include:
Wage Differentials
While travel nurses typically earn higher hourly wages than permanent nurses, that doesn’t necessarily reflect the bottom-line difference. According to the study, permanent nurses average a base wage of $45 per hour, but that then comes with added costs — payroll taxes, benefits and insurance, risk management, recruitment expenses, training costs, and nonproductive time (think administrative work and education). All of these additional costs need to be factored into the bottom-line hourly cost of a permanent nurse hire. Together, these factors can add up to $94/hour, more than the average $89/hour wage for a travel nurse position.
Overhead Costs
When long-term employment costs are eliminated, overall overhead can be much lower for travel nurse positions than for permanent positions. Benefit costs such as insurance, retirement, paid time off, payroll taxes, and more can add up, making permanent nurse positions significantly more expensive than short-term travel contracts. Travel nurses meet staffing needs with little overhead.
Operational Agility
Travel nurses are experienced and well-trained, meaning they can be ready to work quickly without the time and cost of training and onboarding. This high adaptability brings cost-saving versatility across different healthcare settings and enables quick integration without the typical long-term costs of permanent nurses. Time saved is money saved, and travel nurses are used to hitting the ground running in a new position.
High Demand Specialties Among Travel Healthcare
Other clinical travel roles beyond nursing showed similar cost savings in the study. Travel allied health professionals averaged $59.10/hour, compared to “fully-loaded” costs of $64.80/hour for permanent staff. Travel therapy positions offered similar savings, with travel therapists earning an average of $60.70/hour compared to $69.90/hour for permanent therapy positions.
Here are a few of the top nursing specialties and allied health travel positions that are in high demand:
- Cardiac Nursing: With heart disease as the leading cause of death in the United States, cardiac nurses are consistently in high demand across the country. They assist in operating rooms and intensive care units to care for cardiac patients, and their services are invaluable for quality patient care and recovery.
- Operating Room (OR) Nursing: Nurses who care for patients before, during, and after their surgeries are among the most requested travel nurses across the country. This specific travel position requires 1-2 years of OR experience beyond the required education.
- Emergency Room (ER) Nursing: ER nursing will remain in high demand, as ER visits have continued to climb year after year since the pandemic. Coverage uncertainties can also lead to an increase in ER visits, making travel ER nursing another in-demand support position.
- Surgical Technologists: Elective and outpatient procedures are increasing, and surgical technologists are needed to help with that demand. These technologists assist with operating room logistics and support surgeons through procedures. Travel surgical technologists help significantly during seasonal surges or staffing shortages.
- Occupational Therapists: Occupational therapists help patients relearn or develop skills for day-to-day life. They help patients find independence at home and work through their therapy focus, and they’re highly needed in rehabilitation centers, pediatric care facilities, and more. The demand for occupational therapists is expected to grow by 11 percent by 2033.
- Physical Therapists: As the population ages and healthcare places greater emphasis on maintaining or rehabilitating mobility, physical therapists remain in high demand. Travel PTs work across many different settings, offering a wide range of opportunities and flexibility.
How Travel Professionals Make a Difference
While travel health professionals can save on bottom-line costs, the benefits they bring to healthcare settings are not just financial. Their flexibility and travel contracts contribute to quality patient care and team support in other important ways. Some of those include:
Seasonal Surges
Patient care needs often fluctuate significantly during different seasons. This can be for different reasons depending on location — tourism, winter illnesses, summer heat-related issues, holiday travel, population shifts, and other factors all contribute to the rise and fall of patient care demand. Travel professionals can meet temporary needs and quickly provide quality patient care through a seasonal surge.
Faster Placement & Consistent Staffing Support
Many travel health professionals maintain compact licensure that allows them to quickly start new positions, even across state borders. This streamlined placement allows staffing needs to be met quickly, supporting permanent teams with steady coverage.
Burnout Protection
When the burden of staffing shortages falls on permanent nurses and allied health professionals, burnout risk is high. Using travel professionals to fill gaps and support permanent staff is an effective way to lighten the load and continuously provide quality patient care.
Partner With the Right Staffing Support
When looking at the bigger investment picture, travel nurses and other travel clinicians can be a cost-effective solution to meeting staffing needs. The NATHO study found that 17 percent of healthcare executives plan to increase their use of travel nursing by at least 5 percent in the next year. Traveling providers are a practical way to maintain quality patient care while efficiently filling staffing needs.
Partnering with the right travel healthcare agency is a key component of a smooth staffing experience. Supplemental Health Care places thousands of jobs across specialties and care settings. As a long-term career partner, SHC confidently supports providers and quality patient care. If you’re looking for support in finding or filling a travel staffing need, contact us today to learn more about how we can help.
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