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Retention and Financial Impact
Abstract and Introduction Introduction
A Specialized Critical Care orientation yearlong program for new graduate RNs can impact graduate RN retention and positively impact health care finances. Over the past few years, there has been a trend towards multifaceted, specialized orientation programs designed for new graduate RNs. The Critical Care Nurse Fellowship Program (CCNFP) instituted in the setting described in this study is unique in the blended approaches to learning that are included. Investment in a prolonged specialized critical care RN orientation was considered important to enhance the educational experiences of new graduate RNs and improve the financial bottom line.
The CCNFP, initiated in June 2005, was designed as a yearlong program based on an identified need to prolong the learning experiences of new graduate RNs. The program includes a blended learning program with the following components: (a) nurse leaders as mentors, (b) Essentials of Critical Care Orientation (ECCO), AACN's webbased critical care curriculum, (c) professional seminars, (d) associate fellows (experienced critical care nurses educated in the art of preceptorship of new graduate nurse fellows), (e) master fellows (master'sprepared educators providing education and guidance to the nurse fellows during the length of the fellowship program), and (f) simulation as a learning strategy. The program design is included in Figure 1.
Figure 1.
Critical Care Fellowship Program Design
Background
Newly graduated RNs are the largest pool of available nurses in the current job market. Thus recruitment of new RNs is as important as the recruitment of experienced nurses (Advisory Board, 2005; American Association of Colleges of Nursing, 2007). Thirtyfive to 61% of new graduate RNs leave their first place of employment in their first year of practice after graduation (Baggot, Hensinger, Parry, Valdes & Zaim, 2005). New York City data have been more alarming, with 50% of new graduates leaving their jobs in the first year of employment (Berliner & Ginzberg, 2002). Therefore, it is not surprising to find that new graduate RN retention rates in acute care settings are low (Rosenfeld, Smith, Iervolino, & BowarFerres, 2004).
RN shortages are concentrated in specialty care areas and are very acute (Greater New York Hospital Association, 2006; Healthcare Association of New York State [HANYS], 2007; Morris et al., 2007). Strategies to reverse turnover patterns have been developed by instituting new graduate RN residency or fellowship orientation programs (Advisory Board, 2005; Morris et al., 2007). A major shift in thinking that has developed over the past 10 years in the culture of ICUs is to employ, mentor, and orient new graduate RNs using specialized orientation programs (Morris et al., 2007). Fellowship programs and residency programs that incorporate a generationally sensitive, blended learning approach have the potential to serve as a major strategy for nurse retention (Kuhar, Miller, & Spear, 2004).
Specialized New Graduate RN Critical Care Orientation
M. Isabel Friedman, DNP, MPA, RN, C, CCRN, CNN; Alan H. Cooper, PHD, MBA; Elizabeth Click, ND, RN, CLE; Joyce J. Fitzpatrick, PHD, RN, FAAN Nurs Econ. 2011;29(1):714.
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Hospital nursing budgets average 11.7% of their expenditures on temporary nursing staff to close the gap the nursing shortage has caused in their staffing patterns (HANYS, 2005). Using temporary staffing has been a permanent solution for many hospitals, providing an average of 5% of their nursing staffing this way (PricewaterhouseCoopers, 2007). Health Resources and Service Administration predicts the United States will need 90% more new graduate RNs to address the nation's shortage of nurses, which is expected to intensify by 2020 (HANYS, 2007). Filling the nursing gap with temporary nurses has burdened the overstressed budgets in the nation's hospitals, as these services are costly (Sandhausen, Rusynko, & Wethington, 2004).
Documenting costbenefit analyses of increased retention in the ICU is essential to support the costs of a protracted, intense orientation process. Reducing nursing turnover has been estimated to have a cost savings range of 1.5 to 2 times a nurse's salary (Advisory Board, 2005). The financial impact is astronomical. In the current health care economy, the importance of the fiscal impact of new graduate RN retention can not be underestimated.
Benner (1984) describes how new graduate RNs develop "know how," or practical skills, before they develop, or even learn, the "know that" that is theory. Benner's theory served as the foundation for the CCNFP, including three levels of skill acquisition (Benner, 2001): (a) a move from reliance on abstract principles to using past experiences, (b) a change in the learner's perception of the situation in terms of equally relevant bits of information to a complete whole in which only parts are relevant, and (c) development of the new graduate RN from detached observer to participant. The purpose of this study was to determine the effect of a specialized orientation program (CCNFP) on retention of new graduate RNs and the net cost of this orientation program. The research questions for this study were (a) What is the difference in retention for new graduate RNs pre and post initiation of the CCNFP orientation program? and (b) What is the net cost savings that results from retaining critical care nurses postinitiation of the CCNFP?
Methods
A retrospective, descriptive design was used. Retention between two independent groups of graduate RNs in the critical care units of two tertiary hospitals in a multihospital health care system before and after the initiation of the CCNFP was evaluated. The fiscal impact was calculated by com paring the total annual expenditure for advertising costs, traveler and agency nurse cost for the critical care units, and critical care nursing turnover for both tertiary hospitals before and after initiation of the CCNFP.
This study was a retrospective review of data collected as part of the health systems usual activity; deidentified data were obtained from the human resource department. This study received internal review board approval for analysis of retrospective data.
Sample
The sampling frame was all new graduate RNs hired during 2004 and 2007. A nonprobability convenience sample was used. The sample consisted of all new graduate RNs hired into the critical care units of two tertiary hospitals of a multihospital health system on Long Island, New York, pre and postinitiation of the CCNFP. A new graduate RN was defined as an RN who has passed the NCLEX exam within 1 year of hire. No exclusions were identified. The new RN graduates who received standard orientation (SO) began orientation in 2004; the group hired in 2007 received the CCNFP. Thirty new graduate RNs were hired during 2004; 60 were hired in 2007 (N=90). Two tertiary hospitals participated in this study. Hospital 1 had 63.3% of the subjects while hospital 2 had 36.7% of the subjects. Prior to acceptance to the CCNFP, the RN candidate undergoes three separate interviews. Prior to fellowship acceptance, the RN candidate is screened by a RN talent acquisition specialist who uses behavioral interviewing techniques. Next, the candidate is interviewed by the nurse manager on the specific critical care unit. Finally, the candidate is interviewed by one of the administrators of the CCNFP who describes the requirements of the CCNFP.
Measurement
Preliminary statistical analysis including basic descriptive statistics using measure of central tendency and dispersion were calculated to answer RQ1: What is the difference in retention for new graduate RNs pre and postinitiation of the CCNFP orientation program? These descriptive techniques provided information about the sample distribution. The Pearson Chisquare test was used to compare the proportion of employment retention between the two groups separately at each of the time points, 3, 6, 9, and 12 months for the SO group and for the CCNFP group. The data for the demographic variables were assigned a numerical value, and the retention scores were coded as either 0 for no retention or 1 for continued retention. The length of employment was compared across these two groups utilizing the twosample ttest. The retention of both groups was measured using deidentified data retrieved from the department of human resources information technology (HRIT). For the purpose of this study, RQ2, What is the net cost savings retaining critical care nurses postinitiation of the CCNFP? was measured by comparing advertising costs, traveler and agency nurse cost, turnover, and retention for new graduate RNs hired in 2004 and new graduate RNs hired in 2007. The financial data used to calculate the cost of the CCNFP were obtained from the office of the chief financial officer and the office of the chief nurse executive and the data for both tertiary hospitals were analyzed in the
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same manner. The additional cost of the CCNFP was taken into account when calculating the financial impact between orientation programs.
The total annual expenditure for advertising costs was provided by the department of human resources of the health system. Traveler and agency nurse cost for the critical care units in the two tertiary hospitals was provided by the office of the chief financial officer for the two tertiary hospitals. Critical care nursing turnover is defined as all employee separations and include employees who left voluntarily, left involuntarily, retired, transferred to other locations, died, or were separated due to disability multiplied by 100 and divided by the total number of fulltime equivalent employees (transfers within the same location are not included) (American Society for Healthcare Human Resources Administration [ASHHRA], 2008). The critical care nursing turnover data were provided by the office of the chief nurse executive. Retention was measured using ASHHRA's definition as total number of employees on staff for a period of time compared to the total number from that specific group remaining on staff after a period of time. Therefore, total number of new graduate RNs hired into the critical care units of the two tertiary hospitals of the health system prior to the fellowship in 2004 and the total number of new graduate RNs hired into the CCNFP in 2007 of two tertiary hospitals of the health system were compared to the total number of new graduate RNs remaining in the health system after 1 year of employment of both 2004 and 2007 reported in percentage. The data for the calculation of retention were generated by the health system's HRIT department.
Differences among samples at different tertiary institutions were examined with regards to demographic variables using Pearson Chisquare for categorical variables, such as gender, race, etc. Following preliminary data analysis, statistical tests of the study questions were performed. Continuous variables, such as age, length of employment, and turnover were compared with the two sample ttest.
Description of the Programs
The CCNFP educational year is divided into three semesters (see Figure 1). Semester 1 is 9 weeks long and includes a web based critical care core curriculum, professional seminars, and clinical simulation. Master's prepared educators (master fellows) provide and monitor the clinical experience. The clinical experiences were geared specifically to the content of the ECCO module studied during each week and could encompass a variety of clinical venues. Semester 2, 12–16 weeks long, involves a oneto one preceptorship with a clinically experienced critical care RN on the fellow's unit of practice. The associate fellow (preceptor) must attend a preparatory class before being assigned to precept a critical care fellow. The fellow must shadow the exact work schedule of the associate fellow to ensure educational continuity. A clinical pathway (previously referred to as critical care competency checklist) is the tool used by the nurse manager, master fellow, and associate fellow to document clinically safe practices before a fellow can progress to semester 3. During semester 3, the balance of the first year, fellows receive their own patient assignments and have a nursing educator available onsite to respond to any issue that may arise. The fellows agree to work for the health system for a total of 2 years as a requirement for entering the fellowship program.
In 2004, SO in the critical care units of the two tertiary hospitals in the health system consisted of 2 weeks of orientation to the health system, the hospital, and the nursing department. A 5day core critical care course given in lecture format followed. The course included EKG recognition, hemodynamic monitoring, ventilator management, critical care pharmacology, and stroke management. Following the core course, the orientees were assigned a clinical coach and worked on their assigned units for 12 weeks, working three 12hour days per week. During those 12 weeks, the orientees receive classes in advanced ventilator management, dialysis, as well as exams in hemodynamic monitoring and EKG recognition. An orientee would be seen again by an educator only, if requested by the nurse manager. At the end of 15 weeks, the orientees were released from orientation and counted in the staffing patterns. The SO design is included in Figure 2.
Figure 2.
Standard Orientation Design
Results
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The sample consisted of 90 new graduate RNs hired to the critical care units of two tertiary hospitals of a multihospital health system in metropolitan New York. The range of ages of the total sample was 20–56 years with a mean of 30.8 (SD=8). Ages averaged 33 for SO and 29.7 for the CCNFP. The results of the demographic characteristics by orientation program are presented in . Chisquare analysis of demographic data reveals no significant difference in gender, ethnicity, or nursing degree by orientation program.
Table 1. Demographic Characteristics by Orientation Program (SO vs. CCNFP)
Orientation Program
Standard CCNFP Total
Gender Male 6 (50.0) 6 (50.0) 12
Female 24 (30.8) 54 (69.2) 78
Degree in nursing BSN 12 (21.4) 44 (78.6) 56
AND 9 (36.0) 16 (64.0) 25
Ethnicity White 15 (29.4) 36 (70.6) 51
Other 14 (37.8) 23 (62.2) 37
Research Question 1
The normality of the variables of age, length of employment, and turnover was assessed using measures of central tendency, including means, standard deviation, skewness, and kurtosis. The results of four Chisquare tests to test retention (yes vs. no) by orientation program indicated statistically significant differences in retention at 3 months, 9 months, and 12 months. The Chi square values are presented in . Annual retention for SO (2004) was 53.3% and for CCNFP (2007) retention was 78.3%.
Table 2. Pearson ChiSquare Values on Retention at 3 Months, 6 Months, 9 Months, and 12 Months by Orientation Program (SO vs. CCNFP)
Retention [X]2 df P
Retention 3 Months 6.86 1 0.009**
Retention 6 Months 2.14 1 0.144
Retention 9 Months 8.00 1 0.005**
Retention 12 Months 5.95 1 0.015*
*p < 0.05, **p < 0.01
To test if there was a significant difference in length of employment by orientation program (SO vs. CCNFP), an independent samples ttest was conducted. The results were significant (t [45.11] = 2.26, p = 0.03). Length of Employment for the CCNFP (M=321.67, SD=92.74) was significantly higher than Length of Employment for the SO (M=262.90, SD=126.38).
Research Question 2
Expenditures for general and critical care nursing advertising in 2004 (SO) were $488,596 and in 2007 (CCNFP) expenditures were $166,095, realizing a cost savings of $322,501. Comparison of traveler and agency nurse expenditures by hospital and year was $603,259 in 2004 and $1,638,268 in 2007. Traveler and agency nurse expenditures in both hospitals resulted in an increase of $1,035,009 in 2007 after initiating the CCNFP. Cost for administrating the CCNFP in 2007 was $242,210. Therefore, total expenditures for 2007 exceeded expenditures for 2004 by $954,718.
Additional analyses were conducted to determine savings based on turnover rates. Annual percent of turnover was calculated for 2004 (SO) and 2007 (CCNFP). Critical care turnover was 12% in 2004 and 6.2% postfellowship in 2007. An independent sample ttest on turnover between CCNFP and SO was conducted. The results of the test were not statistically significant (t=1.22, p=0.247); however, decreased nursing turnover yields significant cost savings. A 5.8% change in turnover rate from 2004 (SO) to 2007 (CCNFP) resulted in the retention of 9.8 nurses in the critical care units studied. This decreased turnover yields a potential savings estimate of $1,367,100 annually. Savings were calculated using a conservative estimate of nursing turnover of 1.5 to 2 times a nurse's salary (Atencio, Cohen, & Gorenberg, 2003; Beecroft, Kunzman, & Krozek, 2001). Although turnover between the orientation groups was not statistically significant, the results were practicably and financially significant.
Discussion
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Successful orientation has been studied by identifying the elements that support the new graduate RN (Gentile, 2008; Morris et al., 2007; Proulx & Bourcier, 2008) at annual intervals. After successful orientation program redesign, improvements in retention of new graduate RNs were documented from 23% to 93% (Almanda, Carofoli, Flattery, Douglas, & McNamara, 2004; Halfer, 2007; Halfer, Graf, & Sullivan, 2008). Annual retention in the current study improved from 53.4% for SO (2004) and 78.8% for CCNFP (2007). Unique to the current study is that retention was measured at quarterly intervals as well as annually. Quarterly differences in the current study were identified and need to be discussed. Nurses postpediatric nurse intern program were surveyed at 3 months, 6 months, 12 months, and 18 months and it was reported turnover decreased by 8% at 12 months (Halfer et al., 2008). Decreased retention as well as an increase of fear and stress of new graduate RNs at 6 months of employment has also been reported (Newhouse, Hoffman, & Hairstron, 2007).
Retention in the study reported here was not significantly different at 6 months. The major component of the orientation process at that point is the fellows are paired onetoone with associate fellows (preceptors) sharing a patient assignment on their assigned units. At this stage of the fellows' development, the new graduates are very apprehensive about their work, and their approach to patient care is largely procedural and dependant on guidance from senior experienced nurses (Ellerton & Gregor, 2003). Therefore, the fellow/associate fellow (preceptor) relationship is crucial to effectively mentor new graduate RNs from novice to advance beginner as delineated by Benner's Theory (1984).
The fellowship structure provided for 2 "bring back days" in the 3–6 month time frame, where the fellows provide the fellowship administrator feedback on their orientation experience. A recurrent theme from the fellows during that year was discontent with their associate fellow's attitudes and the fact their associate fellow assignments were inconsistent. Preceptors play a vital role in the development and satisfaction of the new graduate RN, and thereby any dissatisfaction with preceptors affects retention. These issues are areas worthy of further investigation.
The 6month point in the retention cycle (Semester 2) has been highlighted by the current study as an area requiring further research. Any changes to the fellowship program, as a result of further analysis, need to result in structures and systems that make the new graduate RNs feel fulfilled both personally and professionally (Gentile, 2008). Increased satisfaction of the new graduate RN will be instrumental in their remaining at their institutions.
In addition, the process by which an associate fellow is chosen (Morris et al., 2007), as well as the content of the mandatory associate fellow class, must be analyzed and changes to the processes made as necessary, integrating mechanisms to monitor change. The careful selection and detailed preparation process for preceptors to ensure they have the competence and attitude to mentor the new graduate RN cannot be minimized (Valdez, 2008). This will serve to increase the preceptors' understanding of the importance of their role in the development of the fellows' critical skills and their importance in the new graduate RNs retention.
Another possible reason for CCNFP losing nurses at 6 months could be that in the first 3 months, the fellows are engaged in educational endeavors, clinical experiences, and medical simulation mentored by master'sprepared educators without the pressure of actual patient assignments. This phase of the fellowship is unlike most of the other fellowship programs described in the literature. The reality of patient care responsibilities combined with the reality of daily work on the unit without the constant support of their educators could be disenchanting, frightening, and convince a fellow to leave his/her employment. This dissatisfaction could be further aggravated if a poor fellowassociate fellow relationship exists.
Costs
Comparison of expenditures for nursing recruitment advertising was calculated on data generated from corporate human resources. All advertising costs other than general nursing and critical care nursing were excluded. The costs were tallied and 2007 expenditures (CCNFP) were subtracted from 2004 (SO) expenditures for a net cost savings of $322,501. It is important to note that prior to 2005 all advertising requests were generated from the individual hospitals. After 2005 the process of generating advertising requests was centralized under the department of human resources nursing division. The centralization of the advertising budget could be responsible for some savings.
Comparison of traveler and agency nurse expenditures was calculated based on data generated from the office of the chief financial officer of both tertiary institutions. It is important to note that during 2007, hospital 2 opened two new critical care units and hospital 1 increased capacity in one unit by 38%. Staffing these new and expanded units required increased use of traveler and agency nurses. In addition, in 2007 the fellows worked for at least 6 months under the direct supervision of another RN and during that time travelers and agency nurses were used to backfill most of the fellows' positions. Therefore, in 2007, for most of the 60 fellows hired into a critical care unit, a traveler nurse or agency nurse was used as staffing for the 6 months a fellow was not working independently. These two situations are expected causes of increased traveler and agency expenditures in both tertiary institutions in 2007.
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The additional cost for administrating the CCNFP for both tertiary hospitals in 2007 was $242,210. This included $1,890 for a CCNFP advertising brochure, $180,000 for associate fellow perquisites, $28,820 for the CCNFP administrator's salary, $30,000 for ECCO licenses, and $1,500 for PSI disposable equipment. The reported increases in traveler and agency nurse expenditures are predicted to decrease over time as staffing levels stabilize, decreasing the need for temporary staffing with the potential to yield significant longterm savings. Although expenditures for 2007 exceeded expenditures for 2004 by $954,718, there is the potential savings estimate of $1,254,400 from the decreased turnover rate, yielding a potential modest financial savings totaling $299,682.
Calculating actual return on investment is complicated because many of the benefits are difficult to quantify and are considered avoided costs. Avoided costs are described as quality of care, reduced turnover, patient and physician satisfaction, positive effects of increased nursepatient ratios on quality of care, and nurse burnout, which would be indirect measures of cost (Advisory Board, 2005; Jones, 2004). The ttest performed on annual turnover for the critical care units by orientation program was not significant. Even though the statistical analysis was not significant, the potential financial impact of new graduate RN retention can not be underestimated. Nurse fellowships and residency programs are financially beneficial, but it takes time and administration's support to reap the financial benefits. Decreasing turnover can successfully offset costs related to recruitment, orientation, and temporary labor costs associated with RN vacancies (Halfer et al., 2008). Currently, there is no standardized way of measuring costbenefit analysis of nurse retention and no uniformity in measurement that would allow for more substantial comparison among studies (Jones, 2004, 2005).
Limitations
Several limitations were identified. First, the use of a convenience sample limited the generalizability of the findings. The second limitation was the use of the retrospective comparative descriptive study design. Lastly, there are other intervening variables that may influence new graduate nurse retention, such as personal reasons for leaving the position. These variables were not identified in the present study.
Suggestions for Future Research
There is a need for replication of this study using larger sample sizes with more diverse groups of new graduate RNs. For example, other critical care specialties, such as the emergency department, operating room, and pediatrics, as well as nurses from other geographic areas around the country, should be examined. There is also a need for longitudinal studies following new graduate RNs in fellowship programs for longer than 1 year, monitoring the impact on retention and health care finances.
Conclusions
The purpose of this study was to determine the effect of a specialized orientation program (CCNFP) on the retention of new graduate RNs and the net cost of this orientation program on recruitment and retention finances.
In conclusion, the nursing shortage exists, and it is predicted to worsen. New graduate RNs are strategically essential to ameliorating the nursing shortage. Specialized orientation programs that support new graduate RNs have documented increased retention and decreased turnover. Therefore, our practices of recruiting and educating new graduate RNs must change. Health care finances are positively impacted by specialized orientation programs. Some studies report immediate financial savings while other studies report increased expenditures in the short term. In the long term, however, investment in specialized orientation programs is predicted to yield longterm savings but immediate expense is necessary for longterm benefit.
Many hospitals have implemented specialized orientation programs, but very little research has been published assessing their effectiveness or scientifically evaluating them. Nursing needs to monitor specialized orientation programs comparable to fellowship programs and continuously improve and reevaluate those programs based on current and future research. Based in part on the lack of significance in retention at the 6month mark of the current study, it is evident novice nurses need and rely on their senior nurses or preceptors for guidance and growth. The CCNFP's second semester fosters the relationship between the new RN graduate and an associate fellow (preceptor). Preceptor support allows the more experienced nurse to bring issues of clinical relevance to the beginner's attention and allows the inexperienced nurse to supplement her/his existing knowledge with the advice of a more experienced nurse. Any failure at this juncture will negatively affect professional growth, nursing satisfaction, and ultimately retention. If the fellow/preceptor relationship fails, so will the growth of the fellow from novice to advanced beginner.
The objective of this study was to evaluate the impact of the CCNFP orientation model on new RN graduate retention and finances related to retention. It is the hope that this study will add to the body of nursing literature and stimulate future nursing research in the areas of specialized nursing orientation programs, new graduate RN retention, and their impact on health care finances. The expectation is this knowledge can be used to develop strategies to retain new graduate RNs.
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Effects of the Recession
The effects of the recession being experienced since 2008 has increased unemployment to an alltime high of over 10.2% (Bureau of Labor Statistics, 2009). Despite this alarming loss of jobs, the health care sector continues to expand job opportunities (Johnson & Evans, 2009). The recession has actually eased the current nursing shortage in many areas of this country (Buerhaus, Auerbach, & Staiger, 2009). For the first time in many years, new graduate RNs are unable to find immediate hospital employment (Carlson, 2009). There is concern hospital administrators might view the current contraction of the economy as the end of the nursing shortage (Buerhaus, 2009). Most RNs who reentered the workforce or delayed retirement plans due to the economic downturn are expected to leave nursing practice when the recession ends (Carlson, 2009). The impact of the recession will improve the dismal longterm projected nursing shortage, but it will not eliminate it (Buerhaus, 2009). RN ageing and retirement are a reality that will resurface after the economy improves, bringing the nursing shortage back to the forefront of the health care consciousness.
Sidebar Executive Summary
New graduate RN retention in the first year of employment is a challenge for hospitals, ranging from a low of 25% to a high of 64%.
The objectives of this study were to determine the retention and costs associated with the employment of new graduate RNs before and after the initiation of a specialized yearlong critical care orientation program.
Retention was compared between two independent groups of graduate RNs in the critical care units of two tertiary hospitals in a multihospital health care system in metropolitan New York.
The major study findings were a significant difference in retention between the two groups at 3 months, 9 months, and 12 months, and an annual financial savings related to decreased nursing turnover.
Specialized orientation programs that support new graduate RNs have documented increased retention and decreased turnover.
Health care finances are positively impacted by specialized orientation programs.
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Nurs Econ. 2011;29(1):714. © 2011 Jannetti Publications, Inc.
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