HouTx, BSN, MSN, EdD 9,051 Posts Specializes in Critical Care, Education. Has 35 years experience. Oct 26, 2015 HOLD THE PHONE I cannot believe PP wrote "When hospitals are business and nurses are a financial drain....." Nursing care is the ONLY reason that hospitals exist.... if a patient does not need 24X7 nursing care, s/he will be treated in an outpatient setting. Sorry, just had to get that out of my system. Labor is (and should always be) the highest expense in any service that is based upon the human touch. When the cost of care providers is lower than other 'extraneous' services, there is something fundamentally wrong with that organization.There are many different variables in the 'cost' of employing new grads, these variables have been documented ad nauseum in the literature. Debate about this issue is a moot point. At the same time, employers realize that the supply of COBs and 'experienced' staff is very limited.... as evidenced by the fact that recruitment bonuses are back. So, even though the on-boarding of new grads is expensive, it will continue to be essential for organizations that want to keep their doors open.