Becoming a Magnet® Hospital Can Increase Revenue, Offset Costs of Achieving Magnet® Status

A new study in the May issue of Medical Care, finds that in addition to Magnet Hospitals having a better nursing environment, promote excellence in nursing practice and provide high quality patient care, these hospitals of excellence increase revenue by more than an average of $1.2 Million, annually. These cost savings are seen through increases with inpatient costs and net inpatient revenues for both urban and all hospitals. The cost of becoming a magnet hospital may be offset by higher patient income. On average, magnet hospitals receive an adjusted net increase in inpatient income of $104.222-$127.05 per discharge after becoming Magnet which translates to more than $1,229,700 to $1,263,926 annually. The researchers calculate that on average hospitals begin to realize payback from achieving Magnet status in two to three years.

 

Medical Care: May 2014. Volume 52; Issue 5. p.400-406.
Jayawardhana, Jayani PhD*; Welton, John M. PhD, RN†; Lindrooth, Richard C. PhD

For abstract and how to obtain the article Click Here.