The objective of this exploratory study was to assess the effects of f
our nurse staffing patterns on the efficiency of patient care delivery
in the hospital: registered nurses (RNs) from temporary agencies; par
t-time career RNs; RN rich skill mix; and organizationally experienced
RNs. Using Transaction Cost Analysis, four regression models were spe
cified to consider the effect of these staffing plans on personnel and
benefit costs and on non-personnel operating costs. A number of addit
ional variables were also included in the models to control for the ef
fect of other organization and environmental determinants of hospital
costs. Use of career part-time RNs and experienced staff reduced both
personnel and benefit costs, as well as total non-personnel operating
costs, while the use of temporary agencies for RNs increased non-perso
nnel operating costs. An RN rich skill mix was not related to either m
easure of hospital costs. These findings provide partial support of th
e theory. Implications of our findings for future research on hospital
management are discussed. Copyright (C) 1997 Elsevier Science Ltd