Labor costs have a profound impact on healthcare facilities in several ways:
1. Financial Strain: High labor costs can strain the budgets of hospitals and clinics, potentially leading to cutbacks in other areas such as equipment or facility maintenance. 2. Quality of Care: Balancing labor costs while maintaining a high quality of care can be challenging. Understaffing to save costs can lead to burnout and decreased patient satisfaction. 3. Recruitment and Retention: Competitive compensation is necessary to attract and retain skilled nurses. High turnover rates can increase costs due to recruitment, training, and the temporary use of agency nurses.
