Hospitals boost perks to keep nurses

Vanderbilt University Medical Center (VUMC) has spent $11 million increasing compensation for its 1,700 licensed registered nurses, a valuable commodity in short supply across the country. The most recent figures from the Tennessee Hospital Association showed a 9 percent vacancy — 2,300 positions open — for nurses across the state. After examining the market last year, VUMC realized it was paying nurses at rates that were not competitive, according to Becky Keck, assistant hospital director of nursing finance and operations at Vanderbilt University Medical Center. "By the time we did our salary adjustment for nurses, along with our shift differential changes and weekend changes, we spent close to $11 million on that salary package," Keck said, noting that the salary increase for the nurses made up about half of the total package. According to Keck, close to $2 million went to the shift differential changes — compensation for work outside a typical workday — in evenings and nights; another $3 million went to the shift differential changes in weekends. Nurses in Nashville earn starting salaries of $17-$21 an hour, or close to $40,000 a year, according to the Tennessee Hospital Association. "Most facilities want to stay at the market [rate]. But when one facility jumps out and offers $5 more, it gets into almost a bidding war," Keck said. In addition to the financial investment, VUMC has started a series of initiatives aimed at improving work-life quality for the nurses with the motto, "Be the best. Keep the best." Amy Howden, a registered nurse in VUMC's recovery room, said, "I think it gives [nurses] a little incentive to want to stay here and not be tempted to go to another hospital in town." According to Keck, "Nurses want their pay to be right, but that's not what keeps people in the work environment." Keck and others at VUMC have worked on scheduling, recruitment, leadership development, involving staff in decision-making and improving nurse wellness — encouraging nurses to "take a break." The medical center also has sent requests for proposals to companies that offer concierge services like on-site dry cleaning and a taxi service to help employees transport their children while they work. Other local hospitals have dedicated resources to fighting the nursing shortage problem. Saint Thomas Hospital, which has a nursing vacancy of 7 percent or less, offers employees on-site dry cleaning and laundry, day care and discounted access to an on-site massage therapist, according to Jennifer Alexander, the hospital's media coordinator for human resources. The 800 Saint Thomas nurses also have the opportunity to earn bonus incentive awards for maintaining a healthy lifestyle. Larry Burkhart, vice president of human resources in HCA Inc.'s MidAmerica division, said the six Nashville TriStar hospitals, including Centennial Medical Center, try to stay very competitive on salaries. "We have a standard pay scale in all of those hospitals so we don't compete with each other," Burkhart said, noting that the pay scale is based on experience. To bolster its recruiting efforts, TriStar also distributed 112 scholarships to the newest class of nurses, according to Burkhart. The company pays for students' books, tuition and fees — ranging from $4,500 to more than $10,000 per year for the two-year programs — in exchange for a work commitment of 18 months to three years. "In my opinion, the Middle Tennessee area has recognized that the shortage is very acute, and a lot of progress has been made by for-profit, not-for-profit and academic institutions here," Burkhart said.