Can anyone explain..

Travel nurses fill a real need. Many places such as Florida, Arizona, and Colorado have increased seasonal needs. It makes little financial sense to hire a year round nurse for a 3 to 5 month need. There is indeed a nursing shortage (the real shortage is larger if you consider the suboptimal staffing of most hospitals) but travel nurses don't help there. Obviously for every travel nurse, there is an open staff spot (assuming full staffing levels which of course does not exist). There are also regional shortages as the economy goes up and down in regions and it takes a while for nursing schools and hiring to adjust. Having travel nurses available for that is a real boon to hospitals. Then there is vacation season, and maternity/paternity leaves that need contingent staffing. There are troubled hospitals few locals are willing to work for (some of these might be better off closed, but some are vital to troubled inner cities).

Many of the reasons for travel nurses actually save the hospital money. For example, I'm an operating room nurse. If a hospital has to close a room, they may have short term losses due to fewer surgeries and reduced census, and long term losses with surgeons going elsewhere. The same applies to many specialty areas. In some high paid areas like San Francisco, travel nurse cost less than staff nurses. And then I've already discussed regional, seasonal, and vacation/sick etc. staffing.

Hot specialties pay big for travelers such as OR, L&D, cath lab and such, and so hospitals fork over big money. That is partly the result of hospital not compensating those specialties what they are worth for staff (many hospital pay the same for any area per experience only), so staff has no incentive to go into such stressful specialties. Theoretically this will happen as part of a market adjustment. In the meantime, hospitals who are willing to pay what it takes to fill their needs can hire travelers.

Travel nurses fill a real need. Many places such as Florida, Arizona, and Colorado have increased seasonal needs. It makes little financial sense to hire a year round nurse for a 3 to 5 month need. There is indeed a nursing shortage (the real shortage is larger if you consider the suboptimal staffing of most hospitals) but travel nurses don't help there. Obviously for every travel nurse, there is an open staff spot (assuming full staffing levels which of course does not exist). There are also regional shortages as the economy goes up and down in regions and it takes a while for nursing schools and hiring to adjust. Having travel nurses available for that is a real boon to hospitals. Then there is vacation season, and maternity/paternity leaves that need contingent staffing. There are troubled hospitals few locals are willing to work for (some of these might be better off closed, but some are vital to troubled inner cities).

Many of the reasons for travel nurses actually save the hospital money. For example, I'm an operating room nurse. If a hospital has to close a room, they may have short term losses due to fewer surgeries and reduced census, and long term losses with surgeons going elsewhere. The same applies to many specialty areas. In some high paid areas like San Francisco, travel nurse cost less than staff nurses. And then I've already discussed regional, seasonal, and vacation/sick etc. staffing.

Hot specialties pay big for travelers such as OR, L&D, cath lab and such, and so hospitals fork over big money. That is partly the result of hospital not compensating those specialties what they are worth for staff (many hospital pay the same for any area per experience only), so staff has no incentive to go into such stressful specialties. Theoretically this will happen as part of a market adjustment. In the meantime, hospitals who are willing to pay what it takes to fill their needs can hire travelers.

Fantastic explanation. I appreciate your insight!