DHS Nurses to Receive $5,000 Bonuses in AR— Here’s Who Qualifies

The State of Arkansas, Department of Human Services (DHS), has announced a new $5,000 incentive for nurses, effective November 1, 2024. The incentive is in response to ongoing challenges in recruiting and retaining registered nurses. The purpose of the Award Program is to alleviate reliance on costly contract nursing staff, enhance staff retention attract new nursing personnel, and improve the continuity of direct nursing care for clients.

Amid a complex and systemic so-called “nursing shortage”, with over 91% of nurses reporting worsening conditions, Arkansas is prioritizing efforts to bolster its nursing workforce. State health officials have engaged in extensive discussions on strategies to address this critical issue and aim to attract and retain skilled nursing professionals through targeted financial support.

Central to Arkansas’ new $5,000 bonus program designed for nurses is the result of ongoing recent discussions between state officials and legislative committees. The award is intended for both current and new nurses. Secretary of the Department of Human Services, Kristi Putnam, and Deputy Secretary, Janet Mann, presented this proposal to the State Senate and House Public Health Committees, emphasizing its potential to effectively recruit and retain nurses within the state. Melissa Weatherton, the department’s director of specialty Medicaid services, said that the award is an interim step while waiting for a more extensive plan to be approved by Governor Sanders. 

The incentive eligibility factors are, 

• The award is offered to nursing employees at DHS facilities, including:
  • Five Human Development Centers (HDC)
  • Arkansas State Hospital (ASH)
  • Arkansas Health Center (AHC)
• Current full-time nursing employees and new hires in qualifying positions are eligible for the award.

Compensation Structure:

The compensation structure for the award differs based on if the nurse is an existing employee or a new hire. 

• A one-time lump-sum award of $5,000 will be granted to eligible employees.
• The total projected costs by facility are:
  • HDCs: $510,000 (72% federal, 28% state)
  • ASH: $467,000 (8% other, 92% state)
  • AHC: $283,000 (72% federal, 28% state)

New Hire Compensation:

Newly hired employees will receive their awards in increments over a period of time. 

• New hires will receive $1,000 upon their first paycheck, with subsequent payments of $1,000 in each of the next four months, contingent on full employment during the pay periods.
• New hires must commit to a minimum of six months of employment to retain the full award.

Repayment Obligations:

Employees who resign or are terminated before completing the required employment period must repay any received installments.

• Failure to repay within 180 days may result in the Department of Finance and Administration offsetting any refunds due to the employee.

71% of nurses surveyed by nurse.org stated that pay was secondary to improved nurse staffing ratios as the primary factor contributing to the reason why nurses are leaving the profession. With Arkansas nurse salary being amongst the lowest 10% in the U.S., starting at $63,000, the bonus may be well received. As of May 2023, the median annual wage for registered nurses (RNs) in the United States was $86,070. However, when nurses were asked in Nurse.org’s State of Nursing survey, “What do you think are the main reasons behind the nursing shortage?” here’s what they said:

• Burnout is a big issue, with 74% of respondents highlighting it.
• Poor working conditions were noted by 58%.
• Inadequate pay for nurses was mentioned by 57%.
• And 34% felt there’s a lack of appreciation for nurses.

While the $5,000 incentive appears promising and could assist in recruiting new nurses and retaining recent graduates, it only partially addresses one of the primary reasons cited by nurses for leaving the profession – which is inadequate pay. For experienced nurses currently employed in the state, the award is meant to recognize their ongoing dedication to the field and encourage them to remain in their positions, the bonus is nice, but it does little to address long-term pay challenges. 

As Arkansas advances with this initiative, the healthcare sector will closely monitor the effectiveness of these financial incentives. The success of this program may provide a valuable model for other states grappling with similar workforce challenges in healthcare.