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Nursing shortage will continue to pinch hospital margins
Modern Healthcare

Hospitals will continue to feel financial pain stemming from the ongoing nursing shortage for the next three to four years, according to a new report.

Labor comprises more than half of most hospitals’ operating revenue, and that share will continue to rise as turnover among nurses remains high and not enough new nurses enter the workforce, a report from Moody’s Investors Service said. Providers will have to spend more to recruit qualified employees while the nursing shortage persists through 2025, according to the Bureau of Labor Statistics. They are already facing higher costs related to rising pharmaceutical prices and technological investments, compounded by waning reimbursement levels.