Testimony of the American Association of Colleges of Nursing on
Fiscal Year 2007 Appropriations for Nursing Education and Research
before the U.S. House Appropriations Subcommittee on Labor, Health and
Human Services and Education

March 31, 2006


The American Association of Colleges of Nursing (AACN) respectfully submits this statement highlighting funding priorities for nursing education and research programs in FY 2007. AACN represents over 590 senior colleges and universities with baccalaureate and graduate nursing programs that include over 210,000 students and 11,000 faculty members. These institutions are responsible for educating almost half of our nation's registered nurses (RNs) and all of the nurse faculty and researchers. Nursing represents the largest health profession, with approximately 2.9 million dedicated, trusted professionals delivering primary, acute, and chronic care to millions of Americans.

The Nationwide Nursing Shortage
Our country continues to be challenged by a shortage of registered nurses that was first noted in 1998. This shortage is showing no signs of diminishing and demographics reveal that, unlike shortages in the past, it will affect health care delivery for the foreseeable future. In 2005, the American College of Healthcare Executives reported that 85% of hospitals experienced a nursing shortage. The U.S. Bureau of Labor Statistics (BLS) has projected that our country will require an additional 1.2 million new and replacement registered nurses by 2014. Nursing has been identified by BLS as the fastest growing professional occupation in the country. However, according to the Health Resources and Services Administration (HRSA), the supply of RNs will drop 29% below demand by 2020 unless deliberate action is taken to increase the number of nurses graduating each year and entering the workforce. Nursing vacancies exist throughout all health care sectors, including long-term care, home care, and public health. Among the nation's 5,000 community health centers, the vacancy rate for RNs is 10% and 9% for nurse practitioners. Even the Department of Veterans Affairs, the largest sole employer of RNs in the U.S., has a 10% RN vacancy rate.

Research clearly documents that patient safety is compromised without a sufficient number of RNs. In 2002, the Joint Commission on Accreditation of Healthcare Organizations (JCAHO) noted that the nursing shortage contributed to nearly a quarter of all unexpected incidents that adversely affect hospitalized patients. Since RNs comprise the largest component of a hospital workforce, shortages result in emergency room overcrowding and diversions, increased wait time for or cancellation of surgeries, discontinued patient care programs or reduced service hours, and delayed discharges.

The nursing shortage also threatens homeland security and disaster preparedness efforts. The Government Accountability Office reported that local and state health officials cited the nursing shortage as an impediment to their preparedness efforts in 2003.

These alarming facts are coupled with little change in contributing factors, such as the aging of America's population, the aging nurse workforce, high rates of RN retirement, and the increasing demand for high acuity health care services by chronically ill, medically complex patients. To ensure that every patient receives the safest, highest quality health care, federal support must continue to play an integral role in our nation's efforts to address the nursing shortage.

Current Strategy: Nursing Workforce Development Programs

Acknowledging the severity of the nation's nursing shortage, Congress passed The Nurse Reinvestment Act of 2002. This legislation created new programs and expanded existing Nursing Workforce Development authorities. Administered by HRSA under Title VIII of the Public Health Service Act, these programs focus on the supply and distribution of RNs across the country. Programs support individual students in their nursing studies through loans, scholarships, and loan repayment programs. Title VIII programs stimulate innovation in nursing practice and bolster nursing education throughout the continuum, from entry-level preparation through graduate study. They are the largest source of federal funding for nursing education assisting students, schools of nursing, and health systems in their efforts to educate, recruit, and retain RNs. In FY 2004, these programs helped to educate over 50,000 student nurses through individual and programmatic support.

Funding for these authorities is insufficient to address the severity of the nursing shortage. Currently, Nursing Workforce Development Programs receive $149.68 million, down from $150.67 million in FY 2005. During the nursing shortage in 1974, Congress appropriated $153 million for nursing education programs. Translated into today's dollars, that appropriation would total $615 million, more than four times the current level. However, it will take billions of dollars to resolve today's nursing shortage.

AACN respectfully requests $175 million for Title VIII Nursing Workforce Development in FY 2007, an additional $25.32 million over FY 2006. New monies would expand nursing education, recruitment, and retention efforts to help resolve the nursing shortage.

Colleges of Nursing Respond
The approximately 1,500 schools of nursing nationwide have been working diligently to expand enrollments. AACN's 2005-2006 annual survey of 567 schools entitled, Enrollments and Graduations in Baccalaureate and Graduate Programs in Nursing, reveals that enrollments increased by 13% in entry-level baccalaureate nursing programs. This makes the fifth consecutive year of enrollment increases that can be attributed to a combination of federal support through Nursing Workforce Development Programs, private sector marketing efforts, 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. Despite intensive efforts nationwide, AACN found that enrollments increased by a total of 57.2% over the last five years in entry-level baccalaureate programs. Moreover, only 8.1% of RNs are under the age of 30, according to the 2004 National Sample Survey of Registered Nurses.

Despite increasing enrollments and the escalating demand for RNs, U.S. schools of nursing still are forced to turn away eligible students. At least 41,628 qualified applications were turned away despite the increase in enrollments. This is a 21% increase from the over 32,797 denied admission in 2004, according to AACN data. Reasons cited for this denial are insufficient numbers of faculty, clinical sites, classroom space, clinical preceptors, and budget constraints. Over 73% of the schools surveyed cited the faculty shortage as the primary barrier to increasing enrollments. Some of these qualified students are placed on waiting lists for two years or more, but many good students are lost to the nursing profession.

Bottleneck: The Nurse Faculty Shortage
AACN believes that the most effective strategy to resolve the nursing shortage is addressing the underlying faculty shortage. HRSA reported in 2004 that just 13% of the RN workforce holds either a master's or doctoral degree, credentials required to teach. In 2003, there were 10,500 full-time master's and doctorally prepared faculty 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 only represent present staffing requirements. If the faculty vacancy rate holds steady, the deficit of nurse faculty is expected to swell to over 2,600 unfilled positions in 2012.

This situation will only worsen with time. The number of productive years for nurse educators will decrease as faculty age continues to climb, averaging 52 years in 2004. As such, significant numbers of faculty are expected to retire in the coming years, but there are not enough candidates in the pipeline to take their places. An average of 410 individuals are awarded doctoral degrees in nursing each year, but almost a quarter (23%) take jobs outside of academic nursing. In 2005, AACN found a faculty vacancy rate of 8.5%, which translates into an average of approximately 2 faculty vacancies per school of nursing. Of those vacancies, over half (52.6%) required a doctoral degree. Higher compensation in clinical and private sector settings lures current and potential nurse educators away from the classroom. For example, the average salary of a nurse practitioner in an emergency department was $84,835, according to the 2005 National Salary Survey of Nurse Practitioners. However, the average salary for a nurse practitioner in academia was only $66,925, 26.8% less. Without sufficient nurse faculty, schools of nursing cannot expand enrollments.

Reversing the Trend: Nurse Faculty Loan Program (Sec. 846A) This trend can be reversed with additional appropriations for the Nurse Faculty Loan Program. Designed to increase the number of nurse faculty, schools of nursing receive grants to create a loan fund. To be eligible for these loans, students must pursue full-time study for a master's or doctoral degree. In exchange for teaching at a school of nursing, loan recipients will have up to 85% of their educational loans cancelled over a four-year period. 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 2005, 66 new grants were made to schools of nursing, and 26 grants were continued, totaling 92. These funds will support an estimated 475 future nurse faculty members. In FY 2006, $4.77 million was appropriated. However, if the current funding was doubled to almost $10 million, based on FY 2005 projections, colleges of nursing could educate over 900 future faculty. Further, with an average faculty to student ratio of 1:10, those 900 faculty could teach an additional 9,000 nurses each year.

Advanced Education Nursing Program (Sec. 811) These grants support the majority of schools of nursing preparing graduate-level nurses, some of whom become faculty. Receiving $57.06 million in FY 2006, 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 88 applications reviewed for this program in FY 2005, 43 new grants were awarded, and 114 were continued. In addition, 422 schools of nursing received traineeship grants, which in turn directly supported 9,000 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 registered nurses (APRNs). Mounting studies demonstrate the quality and cost effectiveness of APRN care. This is especially important for the 78 million aging Baby Boomers, whose demand for health care services will skyrocket in the near future. The rate of physician office visits by Medicare beneficiaries jumped 20.5% from 1992 to 2001, according to the federal report Older Americans 2004: Key Indicators of Well-Being.

Workforce Diversity Program (Sec. 821) These 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 those racial and ethnic minorities under-represented among RNs. Scholarships or stipends, pre-entry preparation, and retention activities are provided to enable students to complete their nursing education. In FY 2005, 171 applications were reviewed, from those 11 new grants were awarded and 48 previously awarded grants were continued. These program funds assisted at least 6,344 students. Workforce Diversity received $16.11 million in FY 2006.

At Risk: Nursing Student Loan Program (Sec. 835) This revolving loan fund was established in 1964 to specifically target nursing workforce shortages. The Nursing Student Loan (NSL) program provides participating undergraduate or graduate nursing students with a maximum of $13,000 in loans at 5% interest. Schools of nursing participating in the NSL select recipients and determine the level of assistance provided, with a preference for those with financial need. New loans are made as existing loans are repaid. This program has not received additional appropriations since 1983. However, in FY 2005, the NSL provided financial assistance to 17,240 nursing students. In FY 2005, Sec. 222 of the Consolidated Appropriations Act of 2005 (P.L. 108-447) included language which stated: "The unobligated balance of the Nursing Student Loan program authorized by section 835 of the Public Health Services Act is rescinded." As a result, the NSL gave back $6.1 million to the U.S. Treasury in July 2005. In previous years, those funds were redistributed among participating institutions, increasing the amount of possible loans. A similar provision in the FY 2006 appropriations law will force the NSL to return even more funds to the Treasury that instead could have assisted nursing students in completing their education.

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 $150 million in FY 2007, an additional $12.66 million over the $137.34 million NINR received in FY 2006.

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. 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 2005, NINR training dollars supported 80 individual researchers and provided 155 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 the cause, cure, and prevention of disease, the Agency for Healthcare Research and Quality (AHRQ) supports health systems research, 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 health care 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 health care. AACN joins the Friends of AHRQ in recommending a funding level of $440 million for FY 2007, an additional $121.3 million over the FY 2006 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 workloads, 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 as 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.

Conclusion

AACN acknowledges the fiscal challenges that the Subcommittee and the entire Congress must work within. However, the health needs of our nation must be addressed by a dedicated, long-term vision for educating the new nursing workforce. Today, nurses must evaluate research that promotes evidence-based practice and utilize technical innovations in providing safe, high quality patient care. Research shows that patient care suffers and mortality rates increase in facilities without sufficient numbers of RNs. Without highly educated nurses, who will care for us when we must enter into our increasingly complex health care system?


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