Protecting Margins by Protecting Staff

The Financial Case for Workforce Safety in Rural Hospitals

Most rural hospital leaders don’t need a consultant to tell them staffing is hard. They’re living it — covering shifts with team members who are already stretched to capacity, watching their valued nurses contemplate departure, and knowing that losing even one person can send a ripple cascading through the entire organization.

What gets talked about less is the direct connection between workforce safety and staff satisfaction, turnover, and financial distress. This was the situation I found myself in when I was the CEO of a health system with several Critical Access Hospitals (CAH). Despite my primary interest in patient and staff safety, I never realized just how pervasive workplace violence was in our facilities. When the topic was brought to my attention during nurse focus groups, I immediately began to investigate the “what, where, when, and how” of this problem and generated a comprehensive view of the downstream impact.

Safety incidents are often hidden, showing up in incident reports, HR conversations, and compliance reviews. But they are also an active topic of conversation in hallways and break rooms. Understandably, workplace violence isn’t typically framed as a financial issue, but the associated downstream costs land squarely on the income statement — manifesting in elevated turnover, recruiting fees, overtime, and agency fees. And the human toll doesn’t get its own line item: declining morale, accelerated burnout, and crucial institutional knowledge, trust, and relationships that walk out the door when someone decides they’ve finally had enough.

The Problem is Magnified in Small Teams

For Critical Access Hospitals, the math is particularly unforgiving. Having run both large quaternary centers and rural CAHs, I know that it’s far easier for large systems to absorb patient or family behavioral challenges — a dedicated security team, layered staffing, rapid response teams, and other backup. Small rural hospitals don’t have that cushion.

When a staff member in a high-risk area, such as an emergency department, a behavioral health unit, or an overnight shift, faces a patient or family member who is escalating toward violence, backup may not be close or available at all. And in environments where every team member already carries a broader scope of responsibility, the expectation that nurses and clinicians will simply manage these moments on their own isn’t just unsafe — it’s totally unrealistic.

This is where safety gaps compound. When an incident occurs, team members experience trauma even if not directly involved. They feel unsettled, unsupported, and unsafe, and they tell their coworkers about it. Trust and morale erode, first quietly, then quickly, and turnover escalates.

What Staff Are Actually Saying

Leaders who’ve invested in workforce safety tools hear a consistent theme from their clinical staff: the technology is used only if it’s incredibly simple and always reliable.

One nursing director put it plainly:

“If it isn’t quick, easy, and foolproof, it just won’t get used.”

When you’re mid-interaction with an angry patient or family member, you need a way to call for help without further escalating the situation. The tools that work are the ones staff don’t have to think about: discrete, one-touch activation, no workflow interruption, and a highly reliable response on the other end. Anything more complicated just stays at home or in the locker.

Staff Who Feel Safe and Supported Stay in Place

It’s proven that staff who feel safe and supported stay longer.1 In rural healthcare, where teams are small and relationships run deep, the signal that leadership is paying attention carries extra weight.

When a hospital makes a visible investment in staff safety, it tells its people something: you matter here, we care about you, and we’re not leaving you to handle this alone. That message alone carries significant weight in a recruiting or retention conversation, and that value increases as a culture of safety is fostered and morale improves.

The Numbers Behind the Narrative

Beyond the obvious human toll, the financial exposure from unsafe work environments is real, and it compounds fast.

Start with turnover. According to the 2025 NSI National Health Care Retention & RN Staffing Report,2 the average cost of replacing a staff RN has now reached $61,110 — and that figure doesn’t fully account for overtime coverage, agency fees, or the productivity loss while a replacement gets up to speed. In a rural hospital running lean, losing two or three nurses in a year goes beyond a staffing inconvenience; it’s a budget-busting, six-figure hit.

Now consider regulatory risk. OSHA has become increasingly aggressive about workplace violence in healthcare settings.3 In 2024, Circles of Care Inc. — a Florida behavioral health organization — was cited for failing to protect staff from patient assaults and faced penalties of $101,397. Beyond regulatory concerns, when cases are litigated, the financial exposure escalates sharply: research by Papa and Venella (2013) found the average jury award in workplace violence liability cases was $3.1 million per person per incident.4

Now consider that these costs — turnover, overtime, agency spend, workers’ comp claims, fines, and potential litigation — are often hidden within financial statements. They accumulate quietly, quarter by quarter, and that’s what makes this problem so easy to underestimate and so expensive to ignore.

Bottom Line: Protecting Staff Also Protects Margins

As leaders, our first imperative is to keep our patients and team members safe. But as noted above, investing in staff safety is something that not only meets an imperative and is the right thing to do, it generates significant financial returns. I learned this lesson the hard way, from experience, and I’m hoping you can learn from mine.

Rural hospitals don’t have the reserves to absorb what large systems can shrug off. A single serious incident — one that triggers an OSHA investigation, a legal claim, or a wave of departures from an already thin team — can destabilize an organization that was otherwise healthy.

Importantly, the inverse is also true. Hospitals that make visible investments in effective staff safety solutions will see it reflected in retention, in morale, and in their ability to recruit in markets where word travels fast. Trust me when I say that the cost of a well-designed safety program is measurable. The cost of not having one shows up in ways that are hard to trace and even harder to recover from. Now is the time to invest in your team along with your own financial performance.

That’s what “protecting margins by protecting staff” actually means. It’s the operating reality for every rural hospital trying to stay financially stable while keeping good people at the bedside.

The math, in the end, is very straightforward: staff who feel safe stay where they are. And when staff stay in place, it eliminates one of the largest controllable cost drivers any rural hospital faces. Hospital leaders who take that seriously aren’t just doing the right thing for their people — they’re making the right financial decision for the sustainability of their organization and communities they serve.


1 Press Ganey. (2018). Optimizing the nursing workforce: Key drivers of intent to stay for newly licensed and experienced nurses (2018 Press Ganey Nursing Special Report). https://www.njha.com/media/569363/2018Press-GaneyNursingSpecialReport.pdf

2 NSI Nursing Solutions. (2025). NSI national health care retention & RN staffing report.
https://www.nsinursingsolutions.com/documents/library/nsi_national_health_care_retention_report.pdf

3 U.S. Department of Labor, Occupational Safety and Health Administration. (2024). Department of Labor investigation into worker's serious injuries finds healthcare facility's operator again failed to protect employees from patient violence.
https://www.osha.gov/news/newsreleases/region4/05092024

4 Papa, A., & Venella, J. (2013). Workplace violence in healthcare: Strategies for advocacy. OJIN: The Online Journal of Issues in Nursing, 18(1), Manuscript 5.
https://ojin.nursingworld.org/MainMenuCategories/ANAMarketplace/ANAPeriodicals/OJIN/TableofContents/Vol-18-2013/No1-Jan-2013/Workplace-Violence-Strategies-for-Advocacy.html

Date Posted
May 21, 2026
Category
Rural
Author
Ronald A. Paulus, MD, MBA
Senior Advisor

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