August 4, 2026

There Is No Nursing Shortage. There's an Exodus, and Hospitals Built It.

Seth Merritt
August 4, 2026
3
min read

Topic bucket: Nursing shortage

A piece went around last week with a headline most hospital executives would never say out loud. Stop saying there's a nursing shortage. TIME ran it on July 30, and RegisteredNursing.org built a whole 2026 analysis around the same data the next day. Here's the number that should stop you cold. More than 280,000 people passed the NCLEX in 2025, up about 34 percent from 2016. Around 7 million nurses hold an active license in this country. Only about 3.4 million of them work as RNs. (Those are NCSBN and BLS figures reported through TIME. Worth a quick check against the source before anyone drops them in a board deck.)

So there are nearly 3 million licensed nurses in America who are not at the bedside. That is not a supply problem. You are not short on nurses. You are short on nurses willing to work for you.

I'll say the thing your CNO is too careful to put in an email. The shortage story is a story. It's the version of events that lets a system keep blaming the pipeline instead of looking at the job it built. And it's expensive, because every dollar you throw at recruiting is a dollar poured into a bucket with a hole in the bottom.

A researcher at Penn named Karen Lasater has the best line I've heard on this. She calls it a leaking gas tank. If nurses leave a year or two after they start, the problem was never the pipeline. The tank is fine. You keep filling it and it keeps draining, and no sign-on bonus fixes a leak. Her team tracked 50,000 hospital nurses in New York and Illinois. After the pandemic more than two-thirds said their unit was understaffed, up from 57 percent before. About a third said they were done and intended to leave their employer. The average med-surg nurse is now carrying six patients, up from about 5.7 before COVID. That sounds like a rounding error. Ask a nurse carrying it.

Here's the part that exposes the whole thing. While hospitals cry shortage, new grads can't get hired. They apply everywhere and hear nothing. Systems say they're desperate for nurses and then pass on the 280,000 people who just passed the boards, because a new grad needs orientation and a preceptor and a year before she carries a full load, and that budget got cut. You cannot claim a shortage and turn away the supply in the same breath. That's not a labor market. That's a system that wants experienced bodies on the cheap and calls the gap a crisis when it doesn't get them.

I ran the payer side of this world for years. I watched systems treat clinical labor like a commodity you rebuy every eighteen months. The math never works. You lose a nurse, you eat the vacancy, you pay a traveler two or three times the rate to plug the hole, the traveler leaves, and your own staff watch a stranger make triple their pay to do their job worse. Then you're surprised when another one gives notice.

So stop recruiting your way out of a retention problem.

The uncomfortable truth is that the acute-care hospital bedside, as it's currently designed, is the thing nurses are running from. Six patients. No unit clerk, because that role got cut, so the phones and the stocking and the paperwork land on the nurse on top of actual nursing. A management layer that treats safe staffing as a line item to negotiate down. That is not a job people build a life around. Fixing it means changing the work, not the headcount.

This is where I'm biased, and I'll tell you why. We built our clinical model on a different bet, that the way you keep a nurse is you give her work worth staying for. Our clinicians manage chronic patients between visits, mostly from a distance, with caseloads that let them actually think and a clear line on what only a nurse can do. The routine stuff, the did-you-refill calls and the scheduling, runs on medical assistants and AI agents. The agents never make a clinical decision. That line does not move at Welby and it never will. A human is always in the loop on anything that touches care. But a nurse should not spend her afternoon dialing 400 patients to book appointments, and when you stop making her, she stops leaving. Our clinician churn is a fraction of what these reports describe. Not because we found unicorns. Because we built a job people don't flee.

There's a bigger point for anyone running a system. A lot of the work drowning your inpatient nurses does not belong in the hospital in the first place. Hypertension, diabetes, heart failure, kidney disease. None of that gets managed in a twelve-minute visit or a hospital bed. It gets managed in the weeks in between, at home, by someone watching the trend and catching the problem before it becomes an admission. When you leave that work stranded inside the building, the building overflows, and your most expensive, hardest-to-replace people absorb the overflow until they quit. Move the manageable chronic care out and into the home, staff it with a sane model, and the pressure on the bedside drops. You keep more nurses by needing fewer of them in the worst seat in the house.

What do you actually do Monday morning? Pull your RN exit data for the last two years and read the real reasons, not the exit-interview boilerplate. Then count how many left inside their first two years, because that's your leak, and it's the make-or-break window every one of these studies points to. If most of your churn is early-career nurses walking out of high-acuity units with no support, no recruiting budget on earth will save you. You have a design problem wearing a shortage costume.

The systems that win the next five years aren't the ones that recruit hardest. They're the ones that finally admit the nurses were never missing. They left. And they'll keep leaving until somebody builds a job worth staying in.

Sources:

  • TIME, Stop Saying There's a Nursing Shortage: https://time.com/article/2026/07/30/stop-saying-theres-a-nursing-shortage/
  • RegisteredNursing.org, Is the Nursing Shortage Real? What 2026 Reports Mean for Students: https://www.registerednursing.org/articles/nursing-shortage-debate-2026-07-30/
  • Lasater et al., Changes in Registered Nurse Employment Plans and Workplace Assessments, JAMA Network Open: https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2821342
  • National Nurses United, New Data Shows There Is a Nurse Retention Crisis, Not a Nurse Shortage: https://www.nationalnursesunited.org/press/new-data-shows-there-is-a-nurse-retention-crisis-not-a-nurse-shortage
  • New Thing Nurse, Why New Graduate Nurses Are Struggling to Find Jobs in 2026: https://www.newthingnurse.com/thenewthingnurseblog/2026/5/13/why-new-graduate-nurses-are-struggling-to-find-jobs-in-2026

Seth Merritt
August 4, 2026
5 min read

Contact Us

Our team would love to hear from you.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.