This article could have been published by Gomerblog. It is unreal that these idiots could be so dense, and still run hospitals. The only way to have not known this was coming was to have eyes shut, fingers in ears and walk the hospital halls singing "LA LA LA..."
He said it is hard to compete with the travel agencies, which are charging hospitals $165 to $170 an hour per nurse. He said the agencies take a big cut of that, but he estimated that nurses are still clearing $70 to $90 an hour, which is two to three times what the hospital pays its staff nurses.
"I think clearly people are taking advantage of the demand that is out there," Shields said. "I hate to use `gouged' as a description, but we are clearly paying a premium and allowing people to have fairly high profit margins."
This, my friend is simple economics. You pay below market value, staff goes elsewhere to earn market value. You then pay a premium to the agency supplying the commodity you put no effort into conserving.
Coule cited a recent example in which his hospital in Georgia hired a respiratory therapist through an agency to replace a staff member who had decided to accept a traveling gig. The replacement came from the same hospital where his respiratory therapist had just gone to work.
"Essentially we swapped personnel but at double the cost," he said.
No, you did not "swap personnel at double the cost" You lost a potentially long term valuable employee, and temporarily patched a staffing hole at double the hourly rate. Your cost is going to be a hell of a lot more than double when you have to actually hire and train somebody to replace the traveller.
The lack of understanding of simple math is astounding.
Missing from the article was a hospital exec explaining what they were doing to mitigate this problem.