Article

Primary Care Nurse Practitioner Wage Differences by Employment Setting

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Abstract

Background: Previous studies reported that primary care nurse practitioners working in primary care settings may earn less than those working in specialty care settings. However, few studies have examined why such wage difference exists. Purpose: This study used human capital theory to determine the degree to which the wage differences between dingsPCNPs working in primary care versus specialty care settings is driven by the differences in PCNPs' characteristics. Methods: A cross-sectional, secondary data analysis was conducted using the restricted file of 2012 National Sample Survey of Nurse Practitioners. Findings: Feasible generalized least squares regression was used to examine the wage differences for PCNPs working in primary care and specialty care settings. Oaxaca-Blinder decomposition technique was used to explore the factors contributing to wage differences. Discussion: The results suggested that hourly wages of PCNPs working in primary care settings were, on average, 7.1% lower than PCNPs working in specialty care settings, holding PCNPs' socio-demographic, human capital, and employment characteristics constant. Approximately 4% of this wage difference was explained by PCNPs' characteristics; but 96% of these differences were due to unexplained factors. Conclusion: A large, unexplained wage difference exists between PCNPs working in primary care and specialty care settings.

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... Previous studies have suggested a few factors that might be associated with nurse practitioner job satisfaction and intention to leave in primary care settings. Some have reported that states with a more restrictive scope of practice legislation have fewer nurse practitioners practicing in primary care (Graves et al., 2015;Spetz et al., 2017;Xue et al., 2018); and that nurse practitioners were more likely to leave if their organization had a more restricted and less supportive environment or a lower salary (Li et al., 2018;Poghosyan et al., 2017a). ...
... This is consistent with our previous work, which suggested that in both primary care and acute care settings, a supportive, cohesive, and independent practice environment was associated with lower levels of burnout, turnover and a higher level of job satisfaction (Cimiotti et al., 2019). The reason that the practice setting was not highly valued by nurse practitioners could be due to the unobserved factors that were not available in this current study, such as the practice patterns of primary care and acute care settings (Li et al., 2018). Efforts are needed to further examine, at a more granular level, the different practice patterns of nurse practitioners in primary care and acute care settings and how those might affect nurse practitioner job choice. ...
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Background Nurse practitioners play a critical role in improving the access to care and in meeting the needs for health care. However, prior to the COVID-19 pandemic, the average turnover rate of nurse practitioners was 10% with associated total direct cost that ranged from $85,832 to $114,919 for each episode of turnover in the United States. Little is known about the job preference of nurse practitioners and the cost savings to an organization that provides jobs with characteristics attractive to nurse practitioners. Objective The aim of this study was to identify the preferred job characteristics that are associated with nurse practitioners' job choices; and to determine the extent to which nurse practitioners would need to be compensated for practicing without these characteristics. Design A two-stage design using a mixed method approach. Setting(s). The state of Georgia in the United States. Participants 2757 nurse practitioners who were actively licensed were invited to participate. Of the 412 participants, 372 actively employed in Georgia were included in the analysis. Methods A 2-stage discrete choice experiment was designed. Stage-1 was a qualitative design using a focus group to identify nurse practitioners' preferred job characteristics. Stage-2 was a quantitative design using survey distribution and analysis. A mixed logit model were used for ranking nurse practitioners' preferred job characteristics and the extent to which they would need to be compensated. Results On average nurse practitioners were 47.4 years of age; the majority were female (90%), white (75.3%), and educated at the master's level (88.7%). Participants did not value teams that were not very cohesive (β = − 1.50); administration that was not very responsive and supportive (β = − 1.04); being supervised by a physician (β = − 0.58); not having their own panel of patients (β = − 0.42); and not billing under their own National Provider Identifier (β = − 0.18). Participants would need an increase in annual income of USD$21,780 for practicing in a not very cohesive team; USD$15,280 for practicing with a not very responsive administration; and USD$21,450 for being supervised by a physician. Conclusions A cohesive, responsive, and supportive working environment and being able to practice independently are important characteristics for nurse practitioners when choosing a job. Healthcare managers should provide a workplace culture that reflects these preferred job characteristics to attract and retain nurse practitioners. Policymakers should consider reforming the scope of practice legislation to promote the independent practice of nurse practitioners.
... The impact of wage increases can harm the development of the business climate where one of the adverse effects caused after the determination of the minimum wage increase is the staff retrenchment (PHK) which can macro-impact on high unemployment and sluggish macroeconomic growth, including the growth of the economic sector, which will in turn have an impact on the consumption by the community itself (Böhm, 1978;Sasaki et al., 2013;Du & Wang, 2019;Greiner et al., 2004;Lankisch et al., 2019;Okudaira et al., 2019). Several studies have made the variable wage a hot issue discussed among researchers who link wages and employment (e.g., Ariga & Kambayashi, 2010;Baek & Park, 2016;Dickson & Fongoni, 2019;Holtemöller & Pohle, 2019;Li et al., 2018;Perugini & Pompei, 2016). From the economic theory and wage theory, there is causality between wages and labor absorption. ...
... Ioan stated in his study that investment is a counterweight to the short-term economic growth strategy and technological capacity advancement as a new strategy in terms of optimal employment. Several researchers have found the influence and relationship between wages and labor absorption (e.g., Ariga & Kambayashi, 2010;Baek & Park, 2016;Dickson & Fongoni, 2019;Holtemöller & Pohle, 2019;Li et al., 2018;Perugini & Pompei, 2016). The influence between wages and employment can be realized as long as regulation, job security, and aggregate demand for labor can take place positively. ...
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The current severe nursing shortage in the United States has many causes and its solution requires new strategies. Collaboration among the American Association of Critical-Care Nurses (AACN), the Society of Critical Care Medicine (SCCM) and the American College of Cardiology (ACC) has provided a model for the multidisciplinary approach needed. Nurse-physician collaboration is an important strategy to address the ongoing shortage.
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Any solution to the imbalance between nurse supply and demand must incorporate at least three related strategies: recruitment of students, redesign of the staff nurse's role, and implementation of known retention promoters. The authors discuss a retention study and examine the characteristics of and disincentives for nurses who have chosen to leave nursing in pursuit of another career. This examination demonstrates how retention is intricately tied to redesign of the staff nurse role and how retention initiatives and staff nurse role redesign may serve to enhance recruitment into the profession.
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Career ladders or adjusted and expanded pay scales when implemented well provide staff motivation and rewards. There are those who will say that this is the wrong time to do anything that will be seen as costing money, and that implementing a career ladder will cost money. Of course, it will cost money. But, who is counting the money being lost due to staff turnover and extensive recruitment strategies and gimmicks? It cannot be avoided any longer. Something must be done about nursing salary compression. Some employers have justified keeping nursing salaries down based on the fact that nurses comprise the largest personnel costs of their institutions. Nurses must counter this opposition with another fact - nurses are the only personnel required to serve around the clock, 7 days a week. Of course, their numbers will account for the largest personnel costs. Why should nursing continue to accept low, compressed wages in such a complex, stressful, and litigious patient care environment when the costs for pharmaceuticals, durable products, procedures, and other personnel are increasing and being paid? Federal and state governments have proposed legislation such as loan forgiveness programs and scholarships. Perhaps now is the time to investigate legislation at the federal and state levels that would allocate money to agencies that develop and implement salary scales or career ladders that compensate registered nurses based on education and experience. If this were to happen, there would also need to be the creation of a monitoring system for ongoing evaluation of agency consistency and compliance over time. States could then set a rewards program for agencies that are in compliance by giving them additional monetary allocations for their salary programs. Surely, this would be a better approach than just loan forgiveness programs, sign-on bonuses, and scholarships that reward only a few. Yes, this solution would be complex, but it is visionary and it would be a major move toward stabilizing the nursing workforce by improving working conditions for nurses that would ultimately result in recruitment of more bright and talented young people and the retention of capable, experienced nurses.
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Nurses in acute care hospitals report that situations in their work setting and profession are in dire need of repair. Although they waiver on their intention to remain in their institution and nursing, they do not waiver on their selected resolution to nursing's shortage. A total of 787 staff nurses in eight geographically and demographically diverse states responded and were asked to select the "Top 5" actions they thought would improve nursing and decrease the shortage. Creating career ladders was endorsed by most respondents (85%) with increasing pay endorsed by the fewest (33%). When selecting the single most important action, they reversed the order--increased pay was the most endorsed (26%), and creating career ladders and increased educational opportunities were endorsed by less than 1%. Nurses appeared to be concerned about the profession in general; however, when asked the "most important" thing to do, an age-old action was selected--increase pay.
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Physician income is generally high, but quite variable; hence, physicians have divergent perspectives regarding health policy initiatives and market reforms that could affect their incomes. We investigated factors underlying the distribution of income within the physician population. Full-time physicians (N=10,777) from the restricted version of the 1996-1997 Community Tracking Study Physician Survey (CTS-PS), 1996 Area Resource File, and 1996 health maintenance organization penetration data. We conducted separate analyses for primary care physicians (PCPs) and specialists. We employed least square and quantile regression models to examine factors associated with physician incomes at the mean and at various points of the income distribution, respectively. We accounted for the complex survey design for the CTS-PS data using appropriate weighted procedures and explored endogeneity using an instrumental variables method. We detected widespread and subtle effects of many variables on physician incomes at different points (10th, 25th, 75th, and 90th percentiles) in the distribution that were undetected when employing regression estimations focusing on only the means or medians. Our findings show that the effects of managed care penetration are demonstrable at the mean of specialist incomes, but are more pronounced at higher levels. Conversely, a gender gap in earnings occurs at all levels of income of both PCPs and specialists, but is more pronounced at lower income levels. The quantile regression technique offers an analytical tool to evaluate policy effects beyond the means. A longitudinal application of this approach may enable health policy makers to identify winners and losers among segments of the physician workforce and assess how market dynamics and health policy initiatives affect the overall physician income distribution over various time intervals.
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The chapter presents a survey and exposition of the development of the earnings function as an empirical tool for the analysis of the determinants of wage rates. Generically, the term “earnings function” has come to mean any regression of individual wage rates or earnings on a vector of personal, market, and environmental variables thought to influence the wage. The premier application is to the study of the effects of investment in schooling and on-the-job training on the level, pattern, and interpersonal distribution of life cycle earnings associated with the pioneering work on human capital by several mentioned scholars. The chapter is devoted to the theoretical and empirical development of the human capital earnings function during the past 25 years. The chapter surveys the empirical estimates of the rate of return to education and the pattern of life cycle earnings. The chapter discusses the derivation of human capital earnings functions under the assumption of homogenous human capital and introduces the model of heterogeneous human capital described. The chapter considers theoretical and econometric issues, which arise when there is inequality of opportunity and ability and closes with a discussion of empirical findings concerning ability bias. The chapter also describes some recent literature on several topics such as signalling, implicit contracts, and specific human capital, which extend or modify certain aspects of the human capital model.
Nurse practitioners' job satisfaction and intent to leave current positions, the nursing profession, and the nurse practitioner role as a direct care provider
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