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KMID : 1170320140200010020
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Korean Journal of Health Economics and Policy
2014 Volume.20 No. 1 p.20 ~ p.36
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Factors related to hospital demand for Licensed Practical Nurses ? An empirical analysis of California Acute Hospitals
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Seo Su-Kyong
Kwon Soon-Man
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Abstract
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This study examines what factors are related to hospital demand for Licensed Practical Nurses (LPN) and how the demand is changing during periods of nursing shortages. Using hospital-level data from California`s Office of Statewide Health Planning and Development, we estimate the demand for LPN. Several statistical methods are applied to control for a variety of possible factors related to hospital decisions regarding employment. We found that the demand for hospital LPN rose with increases in wages of RN, where increases in RN wages by 10.0 percent were related to increases in the demand for LPN by about 7.0 percent. Factors found to be related to the demand include patient days, patient day fluctuation, and the level of financial pressures. We did not find a significant trend of increasing demand for LPN during the years of RN shortage. In conclusions, it is indeterminable that LPN is a potential worker to figure out hospital nursing shortages. Although our findings show in part that LPN may substitute hospital RN, further study on potential determinants of substitutions such as scope of practice is needed.
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KEYWORD
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nurse Labor supply, hospital models, monopsony, vacancies, efficiency wages, contract nurses
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