JNPD
Nurse Residency Programs Column Editor: Jim Hansen, MSN, RN-BC
The Financial Case for Nurse Residency Programs, Part 2
I
n the years since the economic downturn, the U.S. healthcare industry has worked hard to acclimate to a ‘‘new normal’’ financial climate of greater efficiency and quality. Nursing Professional Development (NPD) departments feel an adverse impact as staff and programcutting initiatives continue in both scope and severity, and they need to concisely demonstrate how they directly align with organizational strategy if they wish to remain viable. Failure to do so leaves NPD specialists without the ability to justify the services they provide to the organization, advocate for more financial or human resources, or defend their position if the value of the services comes under scrutiny (Association for Nursing Professional Development, 2013). NPD programs like nurse residency programs (NRPs) are powerful and effective ways to bring new nurses into an organization quickly and efficiently. Therefore, it is important to have an understanding of the costs and value of an NRP and, more importantly, regularly keep all key stakeholders informed and updated about how the NRP fits into organizational strategy, provides value to the organization, and is cost effective. The value implication for NRPs is simple: If the NRP saves the organization more money than it costs to develop and run, then it pays for itself and demonstrates a positive return on investment (ROI) for the organization. To figure the ROI for a program like an NRP, you will need to know (a) the savings/income that results from running a successful NRP and (b) the costs of running a good program. In the last column, we discussed nursing turnover and calculated a projected cost savings from reducing turnover in an average acute care hospital. This column discusses how to figure the costs of running a professional development program like an NRP. Hansen (2011) and Abruzzese (1996) provide a timetested, practical, and comprehensive system for calculating
Jim Hansen, MSN, RN-BC, is Executive Director, The Nurse Residency Partnership, Post Falls, Idaho. The author has disclosed that he has no significant relationships with, or financial interest in, any commercial companies pertaining to this article. ADDRESS FOR CORRESPONDENCE: Jim Hansen, MSN, RN-BC, The Nurse Residency Partnership, 3581 E 1st Ave, Post Falls, ID 83814 (e
Nurse Residency Programs Column Editor: Jim Hansen, MSN, RN-BC
The Financial Case for Nurse Residency Programs, Part 2
I
n the years since the economic downturn, the U.S. healthcare industry has worked hard to acclimate to a ‘‘new normal’’ financial climate of greater efficiency and quality. Nursing Professional Development (NPD) departments feel an adverse impact as staff and programcutting initiatives continue in both scope and severity, and they need to concisely demonstrate how they directly align with organizational strategy if they wish to remain viable. Failure to do so leaves NPD specialists without the ability to justify the services they provide to the organization, advocate for more financial or human resources, or defend their position if the value of the services comes under scrutiny (Association for Nursing Professional Development, 2013). NPD programs like nurse residency programs (NRPs) are powerful and effective ways to bring new nurses into an organization quickly and efficiently. Therefore, it is important to have an understanding of the costs and value of an NRP and, more importantly, regularly keep all key stakeholders informed and updated about how the NRP fits into organizational strategy, provides value to the organization, and is cost effective. The value implication for NRPs is simple: If the NRP saves the organization more money than it costs to develop and run, then it pays for itself and demonstrates a positive return on investment (ROI) for the organization. To figure the ROI for a program like an NRP, you will need to know (a) the savings/income that results from running a successful NRP and (b) the costs of running a good program. In the last column, we discussed nursing turnover and calculated a projected cost savings from reducing turnover in an average acute care hospital. This column discusses how to figure the costs of running a professional development program like an NRP. Hansen (2011) and Abruzzese (1996) provide a timetested, practical, and comprehensive system for calculating
Jim Hansen, MSN, RN-BC, is Executive Director, The Nurse Residency Partnership, Post Falls, Idaho. The author has disclosed that he has no significant relationships with, or financial interest in, any commercial companies pertaining to this article. ADDRESS FOR CORRESPONDENCE: Jim Hansen, MSN, RN-BC, The Nurse Residency Partnership, 3581 E 1st Ave, Post Falls, ID 83814 (e
