Nurse Staffing in Hospitals: A Microeconometric Analysis

The sources of geographic variation in health care resources and the behavioral forces behind the rapid rise in hospital expenditures are analyzed. A series of nurse staffing equations are specified, utilizing a number of explanatory variables in 4 major categories: 1. preference-production function, 2. product demand, 3. factor supply, and 4. wages. Data for the regression analysis were gathered from a mailed questionnaire survey of hospitals.Results of the study indicate that some geographic variations in nurse staffing is due to substitution of less skilled personnel where practical. Communities' ability to pay for services is shown to have an impact on nurse staffing. Expansion of training is seen as a method for increasing the availability of nurses in areas where expansion is desired. The results also indicate that distribution of physicians indirectly affects distribution of nurses. A major policy implication of the results of the analysis is that incentives may be necessary to draw nursing personnel to areas that are considered undesirable but which are in need of professional health care personnel.