Brad Warden,
RN, still is trying to understand why he earns only a little more
than half as much as his wife.
Warden spent
five years in college obtaining his degrees while his wife, Amy,
went to college for a couple of years. He works as a critical
care nurse in the cardiac ICU at University Hospital in Oklahoma
City. Amy runs a dog grooming business. Warden earns about $37,500
per year—before taxes—and he’d lose about $5,200 a year if he
didn’t work night shifts. His wife earns about $60,000 annually.
Thanks to
his wife’s business, Warden, 29, said his family of four has enough
money to live comfortably.
Paul Shaffer,
RN, and his wife, Nancy, who live in Fort Worth, Texas, don’t
enjoy the same financial cushion. They chose to live on Paul’s
salary to allow Nancy to stay home with their two children. This
decision has demanded a lifestyle of careful budgeting and occasional
seasons without vacations or dinners at restaurants when unexpected
expenses gobble up the monthly "fun" allotment.
Whether nurses
have spouses who add to the family income, almost all the RNs
interviewed for this article agree on one thing: They are not
adequately compensated for what they do. Average hospital nurse
salaries in 2000 ranged from $38,456 to $49,088, depending on
the region of the country, according to a survey conducted by
Nursing2001 magazine.
"The
salaries are disappointing for how much work nurses do and the
level of responsibility on the job," Warden said. "I’m
totally frustrated."
Hospital administrators
couldn’t agree more, said Rick Wade, senior vice president of
the American Hospital Association. "I do not know a hospital
executive who would not like to raise nurse salaries."
Although hospitals
administrators and nurses may concur that RNs deserve higher incomes,
the two camps don’t align on how to generate money for these salary
increases.
Wade said
that unions shouldn’t spend their time picketing hospitals that
are losing money—which included more than one-third of the facilities
in the country in 1999, according to MedPAC, the Medicare Advisory
and Payment Commission. He favors uniting the two sides to lobby
Congress for more reimbursement from programs such as Medicare.
But nurse
union leaders challenge the idea that hospitals have no money
to spare. They argue that facilities could find money for nurse
salary increases by cutting steep administrative salaries and
stepping up hospital efficiency.
These salary
tensions are reminiscent of union battles in another service-oriented
profession: teaching. Teachers and nurses earn remarkably similar
salaries, according to www.salary.com.
The site reports
that in Houston, for example, half the teachers can expect to
earn between $38,647 and $56,211, and half the registered nurses
can expect to earn between $39,765 and $55,782.
Although the
salary range is comparable for the two professions, nurses have
at least one disadvantage when it comes to fighting for higher
wages: Only 10 percent nationwide are in unions, according to
the California Nurses Association. By comparison, 75 percent of
teachers are unionized, the National Education Association reports.
Fewer nurses
are in unions largely because many work for private hospitals,
which more often are opposed to unionization than the public institutions
that employ teachers, said Charles Idelson, a spokesman for the
California Nurses Association.
But nurse
unions garner more clout as the shortage increases demand for
RNs, said Diane Sosne, president of Service Employees International
Union 1199NW, a nurse union in Washington state. The most recent
National Sample Survey of Registered Nurses also provides fodder
for union bargaining power. It reveals that RN salaries stopped
keeping up with inflation beginning in the mid-1990s—the first
time that has happened since the survey was started in 1980.
When RN salary
increases sank below the inflation rate, more and more nurses
considered leaving their jobs, said Peter Buerhaus, Ph.D., RN,
FAAN, associate dean for research at Vanderbilt University. At
the same time, working conditions worsened when managed care systems
forced hospitals to cut spending.
As a result,
nurses began to leave their jobs. Many could afford to resign
because more than 70 percent were married, often to spouses who
had high-paying jobs in the booming economy of the late 1990s,
Buerhaus said. "When RN wages fell below the market rate
of inflation, this led nurses to feel that their time was more
valuable spent at home," Buerhaus said.
But Shaffer
is one RN who didn’t have that option.
His income
supported his wife and two children. He made $28,000 a year as
a staff nurse in the early 1980s at Cook Children’s Medical Center
in Fort Worth. To stretch his income, Shaffer learned how to fix
his own cars, and his family usually watched movies on video instead
of shelling out money at the theater. If they had to pay a deductible
to repair damage from a fender bender, the Shaffers wouldn’t eat
out or go on a vacation for a period of time.
Yet Shaffer,
47, doesn’t complain about his salary. "I’ve never been without,"
he said. "I’ve always been comfortable."
At one point,
he took a managerial job as a director of transport and his salary
jumped to the $70,000 range. But the position demanded 12-hour
workdays, and he wanted more time with his family. He decided
to return to staff nursing despite the pay cut to $52,000 a year.
He not only
took a salary dive, but also has topped out on the salary scale
because he has completed all the requirements that earn bonuses,
such as continuing education, teaching and research.
"Raises
would be nice," Shaffer said. "I don’t think anybody
likes to hear that they are maxed out in an area."
Lelynne Waltman-Knight,
RN, works at Cook Children’s in the pediatric intensive care unit.
Like Shaffer, she’s hesitant to complain about her salary of $28
per hour, but still this leaves her with little extra. Waltman-Knight
earns more than her husband and the couple is raising a 6-year-old
son.
Five years
ago, when there was damage to the foundation of their home, she
learned it would cost more than $6,000 to repair. She cried for
days and had to borrow from her retirement account to afford the
repairs.
Some nurses
are turning to per diem work to save money for these kinds of
expenses. Per diem jobs pay more by not offering benefits. An
increasing number of RNs are starting to juggle permanent jobs—where
they can receive benefits—and per diem jobs at other facilities,
said Sue Driscoll, MS, RN, vice president for hospital operations
and patient services at Exempla St. Joseph Hospital in Denver.
This option
is particularly attractive to new nurses, who start at $16 to
$17 per hour at St. Joseph, but can earn $24 per hour working
per diem.
But this trend
creates more frenzy when hospitals have to find substitutes for
nurses who call in sick, Driscoll said. RNs are using their free
time to work per diem at other facilities and aren’t available
to fill in at their permanent jobs. RNs also are more exhausted
at their permanent jobs.
"The
per diem trend makes for a tired workforce," Driscoll said.
"Everyone is running like crazy."
Nurses drawn
to higher salaries also stress rural hospitals, which are scrambling
to compete with wages earned at nearby metropolitan facilities,
said Brandon Melton, vice president for human resources at Catholic
Health Initiatives. Nurses at Mercy Medical Center in Nampa, Idaho,
were disgruntled because they could earn $2 more per hour at hospitals
in Boise, a large city 20 minutes away.
Mercy’s administrators
decided to cut programs that were not in high demand—such as an
inpatient drug and alcohol recovery program—and direct the money
to RN increases.
"It’s
been difficult, but we decided to compete head to head with the
bigger hospitals," said Audra Sinigiani, director of human
resources at Mercy.
Union leader
Sosne points to additional ideas for saving money in hospitals.
"We feel
that hospitals aren’t superefficient and have too many layers
of management," she said. "Salaries for administrators
are outrageous."
Salary figures
for the last two years suggest that the efforts of Sosne and other
nurse union leaders are paying off. Nurse salary increases were
higher in 2000 than 1999, according to the Nursing2001
survey.
About 20 percent
received raises of 4 percent to 5 percent in 2000, compared to
only 16 percent in 1999. Fewer had raises of only 2 percent to
3 percent. In the Southwest, average yearly salaries for hospital
nurses increased from $37,406 in 1999 to $41,024 in 2000, Nursing2001
reported.
But Wade of
the AHA argues that RNs should direct their efforts toward lobbying
the government for more reimbursements instead of battling with
hospitals. He challenges that nurses aren’t fighting the government
"because it’s easier for unions to deal with hospitals instead
of doing the hard work of working with the government. They get
more headlines by picketing in front of hospitals, but what good
does it do to ram against hospital administrators if they have
no money?"
Whether hospitals
have money for salary increases, many facilities are finding ways
to pay nurses extra. At Warden’s hospital in Oklahoma, nurses
can earn up to $2,200 more per year by earning certification in
their specialty and working as a preceptor or in-service teacher,
said Pauli Marr, MS, RN, senior nursing officer at University
Health Partners in Oklahoma City.
The hospital
also plans to start a referral bonus program that will reward
nurses $2,000 for referring another nurse to the hospital. They’ll
receive half the money up front and half after the new employee
has stayed for six months. The newly recruited nurse also would
receive $2,000.
Swedish Medical
Center in Seattle has experimented with a program that pays an
employee a bonus of $5,000 for referring another RN to the hospital.
The new hires do not receive a bonus, and the recruiting nurse
is left to decide whether to share the bonus. The hospital ran
the program from February through April and hired more than 25
RNs—twice the number the hospital usually hired in a three-month
period when the bonus was only $1,000.
For Waltman-Knight,
a similar incentive led her to refer her husband for a radiology
technologist position at her hospital. She received a $5,000 bonus,
and her husband received a $5,000 sign-on bonus.
But Warden
hasn’t cashed in on any such bonuses, and frustration is mounting.
He’s working harder than ever to train new hires as nurses continue
leaving his unit.
"When
I’m not overwhelmed, nursing is enjoyable," he said. "But
the longer I work in health care, the more I want to get out."
He’s considering a career in computer science, which could pay
$80,000 a year working on computer systems for hospitals.
Although many
nurses echo Warden’s discontent, Shaffer offers a different tack
on nurse salaries. "I never entered the profession thinking
I’d be rich," he said. "I feel like nursing is my calling
and I enjoy helping people."