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Nursing Shortages and Related Economics Assignment


There have been many allegations of a nursing shortage, using both the healthcare planners' and economists' definitions of shortages. The American Hospital Association complained of a nursing shortage in the 1950s and 1960s and supported these claims by noting the high vacancy rates in registered nurse positions and the substitution of less highly trained licensed practical nurses for RNs. Congress responded by passing the Nurse Training Act (NTA) in 1964, which began a tradition of government subsidization of nurses' training. Between 1971 and the present, there appears to have been severalperiods of adjustment in which high vacancy rates were followed by policy to expand nurses' training, followed by reductions in shortages. Explain the health care financing and economic principles as they apply to this course of action and what would be the more efficient and effective economically to best keep supply and demand for nurses in alignment?

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Due to the shortages of the nurses and with the government passing laws in support of the nurses, it has resulted in the increasing demand of the nurse's courses. As most of the nurses are underpaid and overworked, there tends to be less demand for the course (Trybou, 2015). Due to this, there has been a shortage of nurses. It is evident in order to meet the demand of the shortage of nurses, the supply needs to be met by creating more courses, educational subsidies and even the government support such as the NTA passed in 1964. Through this, there would be more nurses who would be inclined to pursue the nursing courses and get advanced training with the support of government law. This would help in equating with the matching the demand and equilibrium wages. The high demand has caused high paying jobs of the nurses, while the shortages of nurses have created raise in the pay. The quantity needs to be matched with the supply in order to balance the wages and the quantity supplied (Vryonides, 2015).

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Nurse shortage or surplus is as per now been reflective as per the local conditions, which needs to be attained by the new graduates from nursing schools. The Nurses should also adopt a practice as states that require a training. It has been seen that there would be a considerable nursing shortage that may attribute to the workforce distribution which would work as per the states and result in the working a low national level. No doubt the focus is also on the inequitable distribution related to the nursing workforce across which are working at a rural level in comparison to the urban areas at national-level projections.

Three key factors that are influencing the issue are the-:

Lack of investment and government participation to make a considerable approach related to nursing professionals (Solman, 2017).
Incentives to get an adequate training and also provide a considerable approach to enroll the students into the nursing.The salaries are low and after a brief investment into a career for the considerable 10 years, the nurses attain a professional degree and the license to practice.


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