Travel Nurses v. Permanent Nurses - Which is More Cost Effective?

KPMG recently published its 2025 U. S. Nursing, Allied Health and Therapy Staff labor cost study. After accounting for all direct and indirect costs, using a traveling labor pool delivered measurable savings over using a permanent nursing team.

"All-in costs for traveling nurses average approximately $89/hour, lower than $94/hour for permanent nurses. Traveling allied health and traveling therapy staff are approximately 9% and 13% less expensive than their permanent counterparts, respectively."

Besides the direct wages disdadvantage of permanent nurses, non-productive overhead makes it worse. Attrition, extended onboarding, paid continuing education and the time to fill a permanent nurse position add costs to staff a nursing pool.

A traveling nurse pool may offer strategic advantages. Such benefits might include enhanced operational agility, faster speed-to-fill, continuity of care, and possibly risk mitigation (by reducing legal exposure and liability due to understaffing). These pools offer hospitals and facilities flexible capacity. They may enable administrators to swiftly adapt to staffing demands for critical roles without compromising quality.

The report concludes that a traveling labor force is not just a cost effective choice; it is a strategic solution to help healthcare systems who are struggling with ongoing staff shortages, burn-outs, and rising demand.

For the full report, click here.