Testimony of the American Association of Colleges of Nursing
on Fiscal Year 2006 Appropriations

For Nursing Education and Research before the
U.S. Senate Appropriations Subcommittee on Labor, Health and Human Services and Education
April 1, 2005


The American Association of Colleges of Nursing (AACN) respectfully submits this statement highlighting funding priorities for nursing education and research programs in fiscal year 2006. AACN represents over 580 senior colleges and universities with baccalaureate and graduate nursing programs, and over 190,000 students and 10,000 faculty members. These institutions are responsible for educating about half of our nation's registered nurses (RNs) and all of the nurse faculty and researchers. Nursing represents the largest health profession in the nation, with approximately 2.7 million dedicated, trusted professionals delivering primary, acute, and chronic care to millions of Americans daily across the spectrum of settings.

The Nationwide Nursing Shortage
Our country continues to be plagued by a shortage of nurses that is only expected to intensify in the future. While AACN is cognizant of the difficult budget environment in which the Subcommittee and the entire Congress must operate, patient safety is compromised without a sufficient number of RNs. Indeed, the American College of Healthcare Executives reported in 2004 that 72% of hospitals were experiencing a nursing shortage. Furthermore, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) found in 2002 that the nursing shortage contributes to nearly a quarter of all unexpected incidents that kill or injure hospitalized patients. Since nurses comprise the largest component of hospital staffs, shortages also result in emergency room overcrowding and diversions, increased wait time for or outright cancellation of surgeries, discontinued patient care programs or reduced service hours, and delayed discharges.

The U.S. Bureau of Labor Statistics (BLS) has projected that by 2012, our nation will need an additional 1.1 million new and replacement registered nurses. Despite nursing being identified by BLS as the fastest growing occupation, according to the Health Resources and Services Administration (HRSA), the U.S. still will be roughly 800,000 nurses short in 2020, unless there is a significant and sustained increase in the number of nurses graduating each year and entering the workforce. There are nursing vacancies throughout all sectors of health care, including long-term care, home care, and public health. These alarming predictions are coupled with little change in the multitude of contributing factors such as the aging of America's population, the aging nurse workforce, high numbers of RN retirements, and the increasing demand for more intensive health care services by chronically ill, medically complex patients. It is clear that federal support must continue to play a critical role in the nation's effort to address the nursing shortage.

Nursing Workforce Development

Acknowledging the situation, Congress passed The Nurse Reinvestment Act of 2002. This legislation reauthorized and expanded Nursing Workforce Development programs, administered by HRSA under Title VIII of the Public Health Service Act, to address the inadequate supply and distribution of RNs across the country. These authorities fund nursing education and retention programs as well as support individual students in their nursing studies. The seven Title VIII grant and student programs stimulate innovation in nursing practice and bolster nursing education throughout the continuum, from entry-level preparation through graduate study. Thoughtful and well-written authorities, Title VIII programs are the largest source of federal funding for nursing education. In FY 2004, these programs provided loan and scholarship support to over 28,000 student nurses.

Given the demonstrated need for these outstanding programs, past funding levels have been insufficient, receiving only $150.67 million in FY 2005. AACN respectfully requests $175 million for Title VIII Nursing Workforce Development in FY 2006, an additional $24.33 million over FY 2005. New monies would support these crucial Title VIII programs designed to help resolve the nursing shortage through education, recruitment, and retention efforts for the nursing workforce. During the last serious nursing shortage in 1974, Congress appropriated $153 million for nursing education programs. Translated into today's dollars, that appropriation would total $592 million, almost 4 times the current level.

Colleges of Nursing Respond
The approximately 1,500 schools of nursing nationwide have been working diligently to expand enrollments. In fact, AACN found in a recent study that enrollments increased in 2004 by 15.5% for entry-level baccalaureate, master's, and doctoral nursing programs, over the 9.1% increase experienced in 2003. These increases are attributed to intensive marketing efforts by the private sector, public-private partnerships providing additional resources to expand capacity of nursing programs, and state legislation targeting funds towards nursing scholarships and loan repayment.

While impressive, these increases still cannot meet the demand. In the November 2003 issue of Health Affairs, Dr. Peter Buerhaus reported that nursing school enrollments would have to increase by at least 40% annually just to replace those nurses who retire, due to declining numbers of young RNs over the past 20 years. It is important to note that in spite of protracted efforts by colleges nationwide, AACN found that enrollments have increased only by a total of 53.5% over the last five years in entry-level baccalaureate programs.

In spite of increasing enrollments and the demonstrated need for RNs, U.S. colleges of nursing must still turn away eligible students. In 2004, AACN found that at least 32,797 qualified applicants were turned away, up sharply from over 18,000 in 2003. These students were turned away due to insufficient numbers of faculty, clinical sites, classroom space, clinical preceptors, and budget constraints. Over 75% of the schools surveyed cited the faculty shortage as the primary barrier to increasing enrollments. Some of these qualified students are being placed on waiting lists that may be as long as two years.

Bottleneck: The Coexisting Faculty Shortage
AACN strongly believes that the most effective strategy for the resolution of the nursing shortage is addressing the underlying faculty shortage. HRSA reported in 2000 that just 9.6% of the RN workforce holds master's degrees, while only 0.6% holds doctorates. AACN found that more than half, 53.4%, of the nurse faculty vacancies in 2004 were for faculty positions requiring the doctoral degree. In 2003 AACN reported there were 10,500 full-time master's and doctorally prepared faculty teaching in baccalaureate and graduate nursing programs. Projections through 2012 show that the faculty pool will shrink by at least 2,000 as compared to 2003, even after accounting for retirements, resignations, and additional entrants. Note that these figures do not take into account the need for faculty in new or expanded programs, but represent only present staffing requirements. If the faculty vacancy rate holds steady, it is expected the deficit of nurse faculty will swell to over 2,600 unfilled positions in 2012.

The situation is only expected to worsen with time. Faculty age continues to climb, narrowing the number of productive years nurse educators can teach. Significant numbers of faculty are expected to retire in the coming years, as the average age is 52. Likewise, there are not enough candidates in the pipeline to take their places. For example, an average of 410 individuals are awarded doctoral degrees in nursing each year, but almost a quarter, 23%, take jobs outside of academic nursing. Higher compensation in clinical and private sector settings lures current and potential nurse educators away from the classroom. The average salary of a nurse practitioner in an emergency department was $80,697, according to the 2003 National Salary Survey of Nurse Practitioners. In contrast, AACN found that the average salary for a nurse faculty member was $60,357 in 2003. Without sufficient nurse faculty, schools of nursing will not be able to expand their capacities to educate new generations of the nurses.

Reversing the Trend: The Nurse Faculty Loan Program
This trend can be reversed - with your help. Additional appropriations for the Nurse Faculty Loan Program, Section 846A of Title VIII, will provide targeted assistance. Designed to help increase the number of nurse faculty, grants are provided to colleges of nursing in order to create a loan fund. To be eligible for these loans, students must be pursuing either a master's or doctoral degree on a full-time basis. Loan recipients will have up to 85% of their educational loans cancelled over a four-year period, if they agree to teach at a school of nursing. The loan is cancelled at a rate of 20% for the first three years, increasing to 25% in the final year. A student may receive a maximum loan award of $30,000 per academic year for tuition, books, fees, laboratory expenses, and other reasonable educational costs. In FY 2004, 61 grants were made to schools of nursing, which in turn supported a projected 419 future nurse faculty members. In FY 2005, $4.83 million was appropriated.

For example, if the current funding was doubled to almost $10 million, based on this year's projections, colleges of nursing could educate over 800 future faculty. Though the student to faculty ratios vary by state, a common average is one faculty member for every ten students. Then one could surmise from that estimate that the doubled funding could help to educate over 8,000 future nurses.

Other Sources of Relief
AACN would like to highlight the following programs in addition to the Nurse Faculty Loan Program: the Advanced Education Nursing program, the Workforce Diversity program, and the Nurse Education, Practice, and Retention program.

The Advanced Education Nursing program supports the majority of colleges of nursing that prepare graduate-level nurses to be primary care providers, some of whom become faculty. Receiving $58.17 million in FY 2005, this grant program helps schools of nursing, academic health centers, and other nonprofit entities improve the education and practice of nurse practitioners, nurse-midwives, nurse anesthetists, nurse educators, nurse administrators, public health nurses, and clinical nurse specialists. Out of the 149 applications received for this program in FY 2004, 82 new grants were awarded to institutions and 75 previous awarded grants were continued. In addition, 408 schools of nursing received traineeship grants, which in turn directly supported 8,925 individual student nurses.

The health system's increasing demand for primary care, increased utilization of case management- particularly for chronic illnesses, prevention and cost-efficiency, and a shortage of physicians are driving the nation's need for nurse practitioners, certified nurse-midwives, and other RNs with graduate education and advanced clinical skills, known as advanced practice nurses (APNs). Mounting studies demonstrate the quality of APN care is at least equal to, and at times better than comparable physician services rendered by physicians, and often at lower cost. This is especially important, as the 78 million Baby Boomers age, their demand for health care services will skyrocket. AARP reported that the rate of physician office visits by those 65 and older jumped 22% from 1985 to 1999.

Workforce Diversity grants prepare disadvantaged students to become nurses. As the United States becomes ever more heterogeneous, it is imperative that the composition of our nursing workforce mirrors this shift. According to the U.S. Census Bureau, roughly 30% of the population was reported as a racial or ethnic minority in 2000, but by 2050 that percentage will jump to over 52%. This program awards grants to schools of nursing and other entities seeking to increase access to nursing education for disadvantaged students, including racial and ethnic minorities under-represented among RNs. The program provides scholarships or stipends, pre-entry preparation, and retention activities to enable students to complete their nursing education. In FY 2004, 144 applications were submitted, from those 27 new grants were awarded and 35 previously awarded grants were continued. Under the scholarship program alone, 473 students each received $7,000 scholarships. Workforce Diversity received $16.27 million in FY 2005.

The Nurse Education, Practice and Retention program helps schools of nursing, academic health centers, nurse-managed health centers, state and local governments, and health care facilities strengthen programs that provide nursing education, facilitate innovations in nursing practice, and retention of the nursing workforce. Education grants are made to enable schools to expand enrollments in baccalaureate nursing programs, develop internship and residency programs, and provide for new technology. Practice grants are made to expand arrangements in non-institutional settings to improve primary health care in medically underserved communities, provide care for underserved populations, enhance practitioner skills, and develop cultural competencies. Retention grants are made to the Career Ladder program, which supports efforts to assist people to obtain the necessary education to either enter the profession or to advance within it; enhance patient care delivery systems through incorporation of best practices, and improved communication. In FY 2004, 336 applications were submitted, from those, 40 new grants and 85 continuation grants were awarded. Nurse Education, Practice, and Retention received a total of $36.48 million in FY 2005.

National Institute of Nursing Research

One of the 27 Institutes and Centers at the National Institutes of Health (NIH), the efforts of the National Institute of Nursing Research (NINR) improve patient care and foster advances in nursing and other health professions' practice. These practices must be must constantly updated and validated based on rigorous, peer-reviewed research. The outcomes-based findings derived from NINR research are important to the future of the health care system and its ability to deliver safe, cost-effective, and high quality care. Through grants, research training, and interdisciplinary collaborations, NINR addresses care management of patients during illness and recovery, reduction of risks for disease and disability, promotion of healthy lifestyles, enhancement of quality of life in those with chronic illness, and care for individuals at the end of life. To advance this research, AACN requests a funding level of $160 million in FY 2006, an additional $21.91 million over the $138.09 million NINR received in FY 2005.


NINR Addresses the Need for Translational and Clinical Research

NINR emphasizes translational research, the means by which basic findings relating to behavior, molecules, and genes are tested in the clinical setting and translated into innovative medical practices and improvements in public health. This effort is incorporated into the NIH Roadmap for Medical Research. Under the framework of the Roadmap Initiative, NINR and nurse researchers are addressing the development of new interdisciplinary research teams and enhanced clinical research to move the overall NIH portfolio of social, behavioral, and medical research forward in this coordinated and cohesive effort.

NINR Addresses the Shortage of Nurse Researchers and Faculty
NINR allocates 8% of its budget, a high proportion when compared to other NIH institutes, to research training to help develop the pool of nurse researchers. In FY 2004, NINR training dollars supported 88 individual researchers and provided 186 institutional awards, which in turn supported a number of nurse researchers at each site. Since nurse researchers often serve as faculty members for colleges of nursing, they are actively educating our next generation of RNs.

Agency for Healthcare Research and Quality

While NIH supports biomedical research that improves health care by focusing on disease cause, cure, and prevention; the Agency for Healthcare Research and Quality (AHRQ) supports research from a systems perspective, collecting evidence-based information on health care outcomes. AHRQ research findings are used by patients, clinicians, health system decision makers, and public policymakers to guide healthcare delivery systems and patient care. The research supported by AHRQ not only improves the quality of health care services, but also helps people make more informed decisions about their healthcare. AACN joins the Friends of AHRQ in recommending a funding level of $440 million for FY 2006, an additional $121 million over the FY 2005 level of $318.7 million.

Health Systems Research at AHRQ Addresses Nurses' Role in Patient Safety
AHRQ research has demonstrated that inefficient work processes, overwhelming work loads, extended work hours, and poor workplace designs create obstacles to providing patients safe, cost-effective, and high quality health care. The New England Journal of Medicine published a study of over 6 million patients in May, 2002 that found hospitalized patients had better outcomes when the majority of their nursing care was provided by RNs. Decreased hours of RN care, stemming from the nursing shortage, correlated with longer hospital stays, increased incidence of urinary tract infections and gastrointestinal bleeding, as well higher rates of pneumonia, shock, and cardiac arrest. When patients received additional hours of RN care, the death rates dropped for pneumonia, shock or cardiac arrest, upper gastrointestinal bleeding, sepsis, and deep venous thrombosis.

AHRQ Research Demonstrates that Nurse Education Affects Patient Outcomes
Another AHRQ study found that by employing a greater proportion of more highly educated nurses reduced the mortality and failure to rescue rates from life threatening complications. This extensive study in the September 2003 issue of the Journal of the American Medical Association found that surgical patients have a "substantial survival advantage" if treated in hospitals with higher proportions of nurses educated at the baccalaureate or higher degree level. In hospitals, a 10% increase in the proportion of nurses holding BSN degrees decreased the risk of patient death and failure to rescue by 5%.

Conclusion
Nurses can no longer simply give care to a patient at the bedside. They must evaluate research that promotes evidence-based practice and utilize technical innovations to provide quality patient care. To achieve this level of excellence, AACN recognizes that our nation desperately needs a dedicated, long-term vision for educating the new nursing workforce. Strategies must encompass state support, public-private sector initiatives, and increased federal funding for nursing education and research. Title VIII Nursing Workforce Development programs enable colleges of nursing to innovate and prepare students for the realities of caring for our nation's diverse population in many health care settings across the lifespan. NINR, NIH, and AHRQ provide the research that supports the evidence base for safe practice and quality care delivery. We ask the Subcommittee to graciously consider our appropriations requests for FY 2006.

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