Hospital institutes $100,000 bonuses to improve nurse retention

Editor's Note

Palomar Health, a hospital system in Escondido, California, reports improvement in nurse retention after instituting $100,000 sign-on bonuses for new nurses and $100,000 retention bonuses to current staff paid over a three-year period.  Becker’s Hospital Review reported the news on January 17.

The $100,000 bonuses were instituted in March 2023 with the goal of bringing in nurses who would stay, and reduce the hospital’s reliance on contract labor. They chose the three-year time frame reasoning that nurses who stayed for three years would be more likely to remain. 

The new program has already seen positive results. Hansen reports that the hospital is now able to fully staff its emergency department with very little outside labor. Plans to provide leadership training and one-on-one wellness coaching are expected to further develop the hospital’s supportive culture and ensure that nurses feel valued.