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F I S C A L I M P A C T R E P O R T

SPONSOR Grubesic

ORIGINAL DATE

LAST UPDATED

02/07/07

HB

SHORT TITLE Nurse Recruitment & Retention

SM 18

ANALYST Hanika Ortiz

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$.1 see

narrative

non-

recurring general

fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

Senate Memorial 18 formally requests the Health Policy Commission to study and make policy

recommendations to increase nurse recruitment and retention in New Mexico hospitals.

FISCAL IMPLICATIONS

Additional costs to state agencies incur with the commencement of studies that impact staff and

resources which may need to be redirected.

SIGNIFICANT ISSUES

The Memorial has the following comments:

•

Research and concern are increasing regarding the nursing work force and projected

short- and long-term shortages of nurses.

•

New Mexico hospitals and other health care providers are facing serious shortages of

professional nurses.

•

Physicians and nurses agree that hospital staffing levels of nurses are often inadequate to

ensure safe and effective care of patients, diminishing inpatient capacity, which leads to

emergency department overcrowding.

•

A 2001 national study identified a clear link between nurse staffing levels, job dissatis-

faction and nurse retention.

Senate Memorial 18 – Page

2

•

The need to attract and retain greater numbers of nurses within New Mexico will con-

tinue for the foreseeable future.

•

A well-qualified, satisfied, stable and adequate supply of nurses is a shared concern for

employers, employees, consumers, families and private and public payers of hospital ser-

vices.

•

Increased nurse recruitment and retention could result in reduced errors, increased patient

safety and outcomes and improved job satisfaction for nurses.

•

There currently is no hospital in New Mexico that has obtained "magnet recognition

status" by the American nurses credentialing center.

The Memorial requests the Health Policy Commission report its findings and recommendations

to the Legislative Health and Human Services Committee at its October 2007 meeting.

PERFORMANCE IMPLICATIONS

The Health Policy Commission along with others with knowledge and interest in nursing will be

required to conduct a study to include:

•

research and study of hospital environments that attract nurses, provide them with job

satisfaction, encourage them to give high-quality care and make them want to remain

within the nursing profession;

•

research what other states are doing or considering to make hospital nursing more attrac-

tive;

•

analyze turnover rates, vacancy rates, patient outcomes data, nursing-sensitive quality in-

dicators and organizational factors that lead to the development of best practices in hospi-

tal nursing.

OTHER SUBSTANTIVE ISSUES

The “Magnet Recognition Status" was established in 1993. It is the highest level of recognition

that the American Nurses Credentialing Center can accord to organized nursing services in

health care organizations.

This recognition indicates excellence in nursing services, development of a professional milieu,

and growth and development of the nursing staff. The “Magnet Recognition Status" is valid for a

four-year period, after which the recipient must reapply.

POSSIBLE QUESTIONS

What kind of efforts have been made to seek additional funding from hospitals for this effort

considering this study may greatly benefit hospital recruitment and retention rates.

AHO/sb